Tags: Wirtz | Stocks | Euro | Bonds

Wirtz Bullish on US Stocks, Euro but Bearish on Bonds

By    |   Wednesday, 21 Dec 2011 08:00 AM

Keith Wirtz, chief investment officer at Fifth Third Asset Management, sees a reversal next year for the path of U.S. stocks and bonds.

While bonds surged and stocks eked out only small gains this year, he predicts that stocks will rise sharply and bonds will fall next year. Wirtz also tells Yahoo he expects the euro to climb.

He offers a 10-10-10 plan for stocks next year, playing on former presidential candidate Herman Cain’s 9-9-9 tax proposal.
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"Stocks are giving us a 10 percent return potential, stocks are going to enjoy fundamental earnings growth of around 10 percent, and stocks are priced at around 10 times forward earnings," Wirtz says.

"We think that's a great theme for investors as they consider where to deploy their capital."

Meanwhile, bonds are overpriced, Wirtz says. “Over the next five to seven years, the big risk will be interest rate risk. Investors need to tread cautiously on the income side of the capital markets.”

As for the euro, everyone is selling it, Wirtz says. “When you get that large herd, history has taught me you want to fade that crowd.”

While he’s right that markets often do move against consensus trades, it generally takes a while. With European nations and the European Central Bank unable to take definite steps to solve the continent’s debt crisis, it’s easy to envision the euro falling much further before it rebounds.




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Keith Wirtz, chief investment officer at Fifth Third Asset Management, sees a reversal next year for the path of U.S. stocks and bonds. While bonds surged and stocks eked out only small gains this year, he predicts that stocks will rise sharply and bonds will fall next...
Wirtz,Stocks,Euro,Bonds
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2011-00-21
Wednesday, 21 Dec 2011 08:00 AM
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