Get set for a 'favorable' backdrop for stocks until at least 2019, says Blackstone's Wien
By Victor Reklaitis, MarketWatch
Critical information for the U.S. trading day
As another winning quarter winds down, one veteran Wall Street strategist is pointing out a "surprising lack of optimism about the outlook for equities."
Blackstone's Byron Wien isn't referring to all those pundits who warn about "lemming-like behavior" (http://www.marketwatch.com/story/warning-group-stink-is-as-strong-now-as-it-was-in-2000-and-2007-says-fund-manager-2017-09-25) or a "late-stage bull market (http://www.marketwatch.com/story/when-the-stock-market-finally-implodes-dont-say-these-3-charts-didnt-warn-you-2017-09-18)." He has found the "meh" attitude in his chats with institutional investors -- and he offers a bullish counterpoint.
"Based on my analysis, I think we will have a favorable environment for equities at least until 2019," says the vice chairman for Blackstone's private wealth solutions group for our call of the day.
"The principal reason for this conclusion is that the usual factors that warn of a bear market or recession are not evident," Wien writes in his latest market commentary.
There is no sign yet of an inverted yield curve (a well-known sign of trouble (http://www.investopedia.com/terms/i/invertedyieldcurve.asp)), and mom-and-pop investors are not as happy-clappy about stocks as they were in '99 and '07, he says. Investors might be too complacent, but not if the economy continues to grow -- and the U.S., Europe and Asia are all showing strength, he adds.
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