Tags: Morgan Stanley | Andy Chase | Stocks | Rally

Morgan Stanley's Andy Chase: Stocks Set to Surge 50 Percent During Next 3 Years

 (DPC)

By    |   Friday, 03 Mar 2017 03:18 PM

Morgan Stanley's Andy Chase predicted that the raging bull stock market could charge 50 percent higher during the next three years.

"You could argue that multiples should be up at 25 times earnings," the adviser for Morgan Stanley Private Wealth Management told CNBC.

"You do that math with any earnings growth, and you get like 50 percent over the next few years. So I think there's a long way to go, actually," he said.

He said low interest rates, earnings growth and steady economic improvements under President Donald Trump could push markets to astronomical heights.

"Businesses are basically doing OK, not doing as well as CEOs and politicians, like in some cases, but [it] sure feels like the economy is OK in here," Chase said. "And when you look at the interest rate environment, it just feels like the one asset class that has lagged," he said.

However, not every economic guru is as optimistic.

Former Reagan Budget Director David Stockman tells Newsmax TV that despite the stock market seemingly setting record highs on a daily basis, an economic disaster looms on the nation's horizon.

Years of the Federal Reserve’s misguided quantitative-easing policy and low interest rates have “propped up the stock market to such an extent that it's become a Wild West casino,” the former director of the Office of Management and Budget told Sunday’s “The Income Generation Show.” 

“When you create a casino, you're asking for trouble,” he predicted, casting blame on excessive regulation and the nation’s central bank.

“They're tying the financial system in knots for no good reason. We ought to go to the source of the problem, have a house cleaning at the Fed," he explained to host David J. Scranton.

"I think (Fed Chairman) Janet Yellen ought to be in the crosshairs of what needs to happen here and not some broker who's trying to manage an account for his clients,” said Stockman, who served as a Republican U.S. Representative from the state of Michigan (1977–1981).

He said such wreckless Fed policies has destroyed discipline in financial markets.

“When you have markets that only go one way up, when you have people that learn year after year that you buy the dips and the market is going to go up tomorrow that there's really no downside risk and that the Fed is there to prop up things,” said Stockman, who was the Director of the Office of Management and Budget (1981–1985) under President Ronald Reagan.

© 2017 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
Morgan Stanley's Andy Chase predicted that the raging bull stock market could charge 50 percent higher during the next three years.
Morgan Stanley, Andy Chase, Stocks, Rally
411
2017-18-03
Friday, 03 Mar 2017 03:18 PM
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