Recovery? Don't Bet on It

A full-fledged bull market won't happen, Peter Cohan says, until unemployment drops and Corporate America starts spending again

The economy isn't growing enough to justify the recent rise in stock prices, says Peter Cohan, author and president of management-consulting and venture-capital firm Peter S. Cohan Associates. The problem, says Cohan, is the lack of corporate spending. He attributes the strength in stocks to money managers jumping back in to avoid missing the higher returns. Ahead of the Federal Reserve's policy meeting on June 24 and 25, Cohan points out that the government's main goal is to kick-start the economy before the next Presidential election by creating jobs.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.