John Manley – Smith Barney private client strategist – was on “Closing Bell” with Maria Bartiromo this afternoon. He said there wasn’t much news to report outside of the M&A market – but there was a lot of money around – and that provides support for stocks.
The money’s coming in from pension funds, large institutions, Asia and host of other places. There’s lots of liquidity in the world markets – the U.S.’s large deficit is offset by an enormous savings rate in Asia – so Manley doesn’t see inflation or the economy getting in the way of the strength of the market. Even the fluctuating U.S. dollar is driving exports now.
Manley says the individual investor is having such a hard time finding a good deal on bonds they have no choice but to buy stocks. His advice? Buy multinational blue chips that are in better position to take advantage of the weak dollar.