Low Rates Will Keep Driving Stocks, Investment Chiefs Say
The stock market may not be returning double-digit gains -- but Mark Jordahl, chief investment officer at First American Funds, and Jack Ablin, chief investment officer at Harris Private Bank, still believe "investors need to be in the market." The CIOs joined "Closing Bell" to explain why.
Jordahl told CNBC's Maria Bartiromo that he began 2007 with a prediction of "very low interest rates" and inflation gradually moderating -- and he's sticking with that outlook. Although he foresees that the stock market "could very likely take a pause" near-term, he's confident that growth will continue -- modestly but steadily.
Ablin agreed that low rates will continue to fuel valuation. He sounded a slightly more cautious note than Jordahl, saying that investors should be "at the very least, neutral in equities" if they rejected "the whole bullish argument." Ablin declared that as long as interest rates are low and credit spreads are narrow, "we still have a bid for stocks."