Tags: Biggs | Stocks | Rally | Bullish

Biggs Bullish on Stocks, Sees 10 Percent Rally

By    |   Thursday, 04 Feb 2010 08:42 AM

While many experts anticipate a major drop for the stock market soon, hedge fund manager Barton Biggs continues to expect a 10 percent rally this year.

“I guess I’m a stopped clock for the time being,” he says.

“I still think that the bias of the market is up,” the Traxis Partners chief told Bloomberg.

And why is Biggs bullish?

“Why shouldn’t I be bullish,” he said. “I think the U.S. economy is in a strong recovery.”

While there will be fluctuations in short-term data, the recovery is on solid ground, he says.

Biggs anticipates GDP growth of about 5 to 5.5 percent for the first half of the year.

As for sectors, “Big, high-quality tech is in a powerful bull market. That’s a place you want to be,” Biggs said.

“There’s a number of really good quality multinational growth stocks ranging from McDonald’s to good, high-quality drug companies.”

For investors who like to scoop up distressed assets, Biggs recommends exchange-traded funds (ETFs) that invest in real estate investment trusts (REITs).

Investors should consider oil producers and oil service shares too, Biggs says.

“Big oil companies are attractive. Everything from Chevron to British Petroleum has yields of 5 to 8 percent.”

One expert who disagrees with Biggs is star economist Nouriel Roubini, who says financial markets around the world are vulnerable.

“The trouble now is the beginning of an asset bubble that's becoming global," he told CNBC.

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
StreetTalk
While many experts anticipate a major drop for the stock market soon, hedge fund manager Barton Biggs continues to expect a 10 percent rally this year. I guess I m a stopped clock for the time being, he says. I still think that the bias of the market is up, the Traxis...
Biggs,Stocks,Rally,Bullish
237
2010-42-04
Thursday, 04 Feb 2010 08:42 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved