Mario Gabelli, chief investment officer at Gamco Investors, sees rosy times ahead for the economy and stock market.
“Business is getting better, coming back to some normalcy,” he told CNBC.
“Look at the consumer wealth,” Gabelli says. “We all know about the housing, we all know about the stock market.”
Replenishment of dwindled inventories will buoy the economy, he says. “And then we get the stimulus checks,” Gabelli adds.
“And then we have the global economy. China is going to work. (Its fiscal stimulus package) of $585 billion is going to work.”
In the U.S., “the economy… is going to pick up slowly but surely. And 2010 and 2011 will be pretty good,” Gabelli says.
As for the stock market, we’re now at about 8,500 on the Dow Jones Industrial Average, he notes. “Twelve years ago it was 8,500…. In 10 years, 8,500 will look like a bargain, and it’s a bargain today.”
The best way to make money in the coming bull market: “Plain old stock picking,” Gabelli says.
“You look at specific stocks. Do I want to look at the broad market, do I want to look at fancy engineering?” he asks rhetorically.
“We’re back to old simple things, plain old stock picking. What makes money?”
Gabelli has plenty of company in his enthusiasm for stocks. “I think the rally is for real,” mutual fund manager Neil Hennessy tells Bloomberg TV.
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