“That is a staggering number,” according to Hennessy. He predicted that renewed confidence in the economy would lead to many individual investors taking money out of fixed-income and money-market accounts, which combined have trillions of dollars in assets that could go into stocks.

He also said big companies are sitting on close to $4 trillion in cash. “There is plenty of money to flow into the equity market,” he said. “And there is plenty of capital to start capital expenditures.”

Equities will be the logical option because money markets don’t make money and the Fed will raise rates so that fixed income “is going to get annihilated,” said Hennessy, arguing that stocks are about to make a big comeback.

“This whole marketplace reminds me of the 1982 stock market,” the year a big bull market began, he said.

He added that foreign markets in general have problems, with the exception of Japan. He added that Abenomics has been succeeding and a boom in Japanese tourism will help turn the country around. “People will increasingly see that Japan is a clean and safe country,” Hennessy added. “The people are very friendly.”
 

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