Stocks have further room to rise, thanks to buoyant global economic growth, says Barton Biggs, managing partner at hedge fund firm Traxis Partners.
“There is every reason to believe the U.S. is in a strong recovery, and Asia is in a very strong recovery,” he says.
While Europe’s growth has been a bit disappointing, the Greek crisis could actually help economies on the continent by pushing the euro down, he told Bloomberg.
“A little weakness in the euro is probably good for European exports and for the European economy.”
Biggs thinks the European Union is handling the Greek situation properly.
“The Europeans sent the right message, saying if you can convince us you’re going to practice some discipline, then we’ll take care of you. And I think that’s going to happen.”
Biggs also approves of China’s steps to deflate its credit bubble.
“The Chinese authorities are doing the right thing in terms of gradually tightening. . . . In all probability China is going to have a soft landing.”
So what does all this mean for stocks?
“On balance, . . . I’m pretty bullish here” Biggs said.
CNBC commentator Jim Cramer shares Biggs’ optimism, viewing U.S. companies as fundamentally strong.
“If you want to go sell General Mills because of a situation involving Greek debt, be my guest. I’ll buy it from you nine days out of 10,” Cramer said on the air.
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