Stock Rally Still Has Legs: Morgan Stanley CEO
Individual investors left their money with Morgan Stanley, waiting for good ideas, Chairman and CEO James Gorman said "First on CNBC" Friday, adding the stock market could "still move higher" if the political uncertainty is resolved.
"We have $1.8 trillion of assets," Gorman said in a "Squawk Box" interview, right after Morgan reported better-than-expected earnings. "On any day, 5 percent of that is looking to go to work. Ninety billion dollars is sitting there waiting to get into the market. If we see some confidence coming through from the political sector ... this thing has legs."
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"The individual investors haven't pulled money out of firms like ourselves," Gorman told CNBC Friday. "So it's not a total despair of the markets. It's a confusion and uncertainty. The money is still there. They're waiting for good ideas."
He said he's been bullish on the stock market for four or five months: "We can still move higher from here."
The macroeconomic trends favor stocks, Gorman observed, adding, "The U.S. economy is recovering. That's unmistakable. The speed of it still remains to be determined."
—By CNBC's Matthew J. Belvedere; Follow him on Twitter @Matt_SquawkCNBC