The economy is strong, and that means heady gains ahead for stocks, says billionaire money manager Ken Fisher.
The Standard & Poor’s 500 Index will probably reach 1,300 as soon as February, the chairman of Fisher Investments told Bloomberg. Already the S&P 500 has soared more than 60 percent from its March lows.
“It’s just a reversal of excessive pessimism,” Fisher said.
“We still have a lot more bull market to go because we had such a huge bear market.”
He’s particularly impressed with the economy’s 3.5 percent expansion in the third quarter.
“The economy is not recovering at a slow pace,” he said.
“America is faster than people think. Third-quarter GDP numbers knocked the socks off of expectations.”
Fisher says economically-sensitive sectors should lead stocks higher in coming months. He specifically pointed to raw materials producers, discretionary consumer companies and industrials.
Technology and energy companies will gain but lag behind those leaders, he says. Fisher also recommends emerging market stocks.
Fisher’s Global Total Return fund returned 4.9 percent annually during the five years ended Sept. 30, according to Morningstar.
Others share Fisher’s bullishness on stocks.
“When you have zero percent inflation, zero percent interest rates, zero percent money markets rates, and when you have metals and gold that have skyrocketed to astronomical levels, stocks look pretty good in comparison,” M. Jake Dollarhide, CEO of Longbow Asset Management, told The New York Times.
© 2013 Newsmax. All rights reserved.