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Europe Won't Derail US Growth: Jason Trennert

Published: Monday, 24 May 2010 | 11:24 AM ET

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By: JeeYeon Park
CNBC.com Writer

The euro fell broadly on Monday, after the Spanish central bank's takeover of a savings bank added to jitters about debt problems in some of the weak euro zone countries. Where should investors be putting their money? Jason Trennert, chief investment strategist and managing partner at Strategas Research Partners, shared his views.

Trennert told CNBC that the events are Europe is unlikely to derail the economic growth in the U.S.

In addition, he said American financial reform legislation has made "a lot of progress," but there’s still a chance that it could hurt the flow of credit that’s “so greatly needed in the domestic economy.”

So how would he play the current environment?

“There’s a lot of value in large-cap quality equities, but certainly some of these things are imponderable as far as the policy risk element,” he said.

“There’s very little value for long-term investors in bonds.”

“I'm looking at bonds that are yielding about 3.25 in 10-year Treasurys—that’s about 30 times earnings. And I can buy Microsoft [MSFT Loading... () ] at 11 times earnings or Amgen [AMGN Loading... () ] at 14 times earnings,” Trennert said.