GO
Loading...

U.S. Equities Still 'Great,' Says Investment Chief

Ajay Kapur says "10% of the U.S. economy...is slowing down." So why is the chief investment officer of First Horse Capital still so bullish on American equities? He explained his optimism to CNBC's Mark Haines, on "Squawk on the Street."

Kapur said that a strong increase in global liquidity, plus interest rates worldwide being kept on hold, make a "very good story for the supply and demand" of equities -- with shrinking availability driving up valuations in Europe and the U.S. The CIO conceded that the U.S. housing and automobile sectors are slowing, but declared that the economy's "other 90% is doing great."

Kapur scoffed at the fears of an "impending blowout" in private equity. He likens anxious analysts to those who "worried" about the dot-com bubble in "1997 or 1998" -- "a bit too early." The investment chief pointed out that bubbles have a way of growing a lot before the burst comes.

"As long as corporate bond yields are below free cash flow yields, this game will continue," he predicted. "We are not anywhere near a recession, or even a slowdown."

Contact Squawk on the Street

  • Carl Quintanilla is an Emmy-winning reporter and co-anchor of CNBC's "Squawk on the Street," broadcast live from the NYSE.

  • Simon Hobbs co-anchors the 10 a.m. hour of CNBC's "Squawk on the Street" live from the New York Stock Exchange.

  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

  • “Squawk on the Street” Co-Anchor

  • Rick Santelli joined CNBC Business News as an on-air editor in 1999, reporting live from the floor of the Chicago Board of Trade.