We Are in an Economic Disneyland: Daley
There is a huge disconnect between market sentiment and reality, Kirby Daley, senior strategist at Newedge Group told CNBC Tuesday.
“I do think we are in an economic Disneyland”, he said on "Squawk Box Asia." “There is a virtual cacophony of spin being put on every economic data released that is targeted at getting investors to buy stocks and consumers to spend.”
The problem, according to Daley, is when investors buy stocks assuming that consumers are spending.
“Consumers are not playing the game and even if they wanted to, they can’t”, Daley said. “The credit isn't available. We know they don't want it, they don't have any money.”
Investors shouldn't assume that earnings will be rising because consumers are spending, he said.
In addition, investors should avoid the dollar, he said.
“The U.S. dollar is going nowhere but down. Unless we suddenly reverse track which it doesn’t look like we are going to on continued monetization of debt and printing money.”