John Taylor, chief investment officer at FX Concepts, which oversees $8.4 billion in assets, said "it means nothing" that the Standard & Poor's 500 index is up 17 percent since December.
"It gives the feeling of robustness to the economy but it has nothing to do with the people's ability to spend money," he said. He says he is sticking with his forecast of a second recession beginning in mid-2011 and offered bleak prospects for this year's GDP growth -- 1 percent to 1.5 percent, or less than half of the official federal projection
.
"We don't seem to be reading the same tea leaves," he said of the economists who have revised their outlooks higher. "You just have to have growth in debt for the economy to have GDP growth ... And the Fed is not going to do it because Republicans aren't going to let that happen," he added.
For more: U.S. stock gains mean nothing: FX Concepts' Taylor | Reuters
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