Dan Veru, chief investment officer at Fort Lee, New Jersey-based Palisades Capital Management LLC, comments on U.S. Federal Reserve Chairman Ben S. Bernanke’s statement today in Jackson Hole, Wyoming.
Bernanke said the central bank still has tools to stimulate the economy. He didn’t provide details or signal when or whether policy makers might deploy them. Veru, whose firm oversees $3.8 billion, spoke in a telephone interview.
“There’s a risk appetite that’s building in the marketplace. At some point people are going to see interest rates are going to stay at zero for some time so we should probably buy financial assets. It takes a while to digest what this all means.
‘‘He’s reiterated rates are going to be at zero for much longer than you originally thought, he’s saying no change. That should be good for financial assets in the long run. In the short run, we have all this other noise coming out of Europe, and in the U.S., it’s feeling like a recession because there’s very little growth.