Pimco Managing Director Neel Kaskhari on Thursday sounded bullish on economic conditions over the short term and stocks over the long-term.
“We are absolutely investing in equities,” he said on CNBC’s “The Kudlow Report.” (Read More: Play Equities as Long as Fed ‘Drip’ Allows: Kashkari)
Yet asked for his take on Wharton School finance professor Jeremy Siegel’s prediction that the Dow would hit 17,000 by the end of next year, Kashkari didn’t rule it out. (Read More: Former Treasury Official: QEs ‘Are Like Morphine’)
“I don’t want to say it’s impossible, but we have to focus on the factors that drove the markets — both equities and bonds — the last several decades. We were levering up the U.S. economy, corporate taxes kept going down and down and down, and corporate profits as a share of GDP kept going up. (Read More: Pimco's Neel Kashkari: Deficits Prop Up Stock Market)
“Those tailwinds are likely not going to blow for the next five, 10 years. And so we think you need to be more realistic about what kind of returns are going to be possible, but we still think stocks can be very attractive for long-term investors,” he said. (Read More: Be Selective, Buy Strong Dividend Payers: Pimco’s Kashkari)