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Tags: Baur | Invest | US | Stocks

Economist Bob Baur: Invest in US Stocks Now

Sunday, 09 Oct 2011 11:34 PM

By Forrest Jones

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U.S. stocks have taken a beating and although there is a decent chance the country may slip into a recession, chances are, it won't, which makes equities ripe for buying, says Bob Baur, chief global economist at Principal Global Investors.

"U.S. stocks are somewhat unloved and under-owned, there could be some money coming into the U.S. market. And frankly we think that is the most attractive place right now," Baur tells CNBC.

There's a 40 percent chance of a recession in the U.S., which means it's more likely the country will avoid one, Baur says.

"I think in the U.S. we just need to see continued economic data that's on the positive side," Baur adds.

Furthermore, many stocks have priced in a Greek default, so if it comes, it won't rattle the markets as much, especially consider the strength of U.S. corporate financials.

"Profit growth has been very strong; U.S. companies are very lean," Baur says.

The U.S. economy added 103,000 jobs in September, more than expected but not enough to really signify lasting recovery in the labor market, experts say.

"The September data signal an economy neither reaccelerating nor shifting into recession. Looking into where the job growth was, not counting the returning workers, 50 percent was in health care, 20 percent in temporary workers and 15 percent in retail," says Steven Blitz, chief economist at ITG Investment Research, according to the Wall Street Journal.

"These are not job categories reflective of a dynamic growing economy or even an economy turning in that direction, unless you consider dynamic growth the care and feeding of aging baby boomers."

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