Until Fed Gets Aggressive, Stocks Will Rise: Dwyer

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April 1 (Bloomberg) -- Canaccord Portfolio Strategist Tony Dwyer discusses the markets and his investment ideas on Bloomberg Television’s “Bloomberg Surveillance.” (Source: Bloomberg)

Why will stocks drive higher?

When are we going to buy?

5.5% for fixed income?

That's the story.

It isn't -- it is not the degree of growth.

It is and how fast the economy is growing.

-- it is not how fast the economy is growing.

Since the beginning of february, i'm starting to see the large cap simply do better.

Any number of things can be mentioned.

They really start to come on.

Why are they moving higher?

Last year, i raised my target 1760 above everybody else.

Then we went into an immediate correction for march.

It appears i've done it again this year.

The buyer technology stocks have been getting absolutely killed.

The momentum was killed in favor of the old line stocks you talk about.

That is what happened last march.

It turned out to be an excellent buying opportunity.

With the fed's zero interest-rate policy for at least another year, i see no reason to change that view that it should happen again this year.

You've been coming on the show for 2.5 years and you have been consistently bullish.

We have been giving you a hard time about it.

What would change that would cause you to say, ok, now the run is done?

Only one thing that kills a bull market.

The market correlates to the direction of earnings.

The direction of earnings is driven by economic activity.

Economic activity is driven by the statements of the yield curve which is driven by fed policy and that is driven by core inflation.

Until you get core inflation expectations going up enough to make the fed aggressive enough, this tape is going to go higher.

Will have corrections or long -- along the way.

Short-term interest rates are u -- you will not be at the market.

Emerging markets are facing headwind at a time when their own policies are too loose and the lack of structural reform.

These emerging markets also face political and electoral risk.

What would interrupt this bull market?

That's fantastic.

What happened is, from 1995-1998 , the market went from 15 times earnings to about 23 times earnings at the same time mexico defaulted on their debt.

China has slowed down to about 7.5% growth from 17% growth.

The emerging markets crisis failed.

All of those things happened as u.s. equity went up significantly.

Slow down growth to the point where the fed did not have to raise rates and valuations were allowed to expand.

Congratulations on your continued call.

It david plouffe with us.

Our bull markets good for politicians?

Half the country is not in the market at all.

Generally, there is a sense -- during our reelection campaign from of the presentation about the stock market created anger.

He said, i don't feel like -- it adds to the sense that directionally we are headed in the right place.

Futures are higher right now

This text has been automatically generated. It may not be 100% accurate.


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