Tags: Crescenzi | stocks | Treasurys | growth

Pimco's Crescenzi: Stocks Will Best Treasurys This Year

By    |   Friday, 04 April 2014 08:40 AM

Stocks will probably outperform Treasurys in 2014, as economic growth heats up, says Pimco market strategist Tony Crescenzi.

"Pimco would be fully invested in the S&P 500 this year," he tells CNBC. "This may sound a bit different to hear from Pimco."

That's because in the past Pimco was focused on the idea of a "new normal" for economic growth, as formulated by former CEO Mohamed El-Erian.

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"We've been projecting growth of about 2 percent for a long time, and that's been where it's been," Crescenzi insists. GDP expanded 1.9 percent in 2013.

But now "we expect economic growth of between 2.5 and 3 percent in the United States this year. For Pimco, that's pretty high," he notes.

El-Erian himself told CNBC in January that the "new normal" was close to an end.

"Pimco is projecting the old normal to return this year," Crescenzi tells CNBC. He predicted the 10-year Treasury note will trade in a range of 2.75 to 3.25 percent. The yield stood at 2.8 percent late Thursday.

Sam Stovall, chief equity strategist at S&P Capital IQ, tells The Wall Street Journal that he is still bullish on U.S. stocks for the long run. But he anticipates a correction in the near term, due to economic uncertainty in the eurozone and China.

Stovall advises that investors wait for a decline in stock prices before buying. "Don't chase it," he declares. "You'll probably have better entry points as the year progresses."

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Stocks will probably outperform Treasurys in 2014, as economic growth heats up, says Pimco market strategist Tony Crescenzi.
Crescenzi,stocks,Treasurys,growth
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2014-40-04
Friday, 04 April 2014 08:40 AM
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