Dick Bove: Ignore Fiscal Cliff, Buy Stocks
Investors appear unwilling to make big bets in either direction ahead of a hotly anticipated meeting of central bankers at Jackson Hole, Wyoming, on Friday.
Stocks have rallied in recent weeks on growing expectations for a third round of quantitative easing from the Fed, as well as possible action from the European Central Bank.
News from Jackson Hole could determine whether the summer rally that drove the S&P to four-year highs is sustainable or not.
According to widely followed bank analyst Dick Bove of Rochedale Securities if history is any indication, the Fed will make a move.
“The Fed provides seasonal easing this time of year,” said Bove on CNBC’s Kudlow & Company. “And they do it because of the holidays.”
Bove is bullish stocks broadly. But not only because he expects the Fed to move, he's encouraged by other historical factors.
“There’s a seasonality in the entire stock market this time of year. Since 1888 there has been a seasonal thrust.”
Even with the fiscal cliff, Europe’s financial crisis and all the other headwinds in the market, Bove told us he’s a buyer of stocks.
“My price target on the S&P is 1555,” he said.
"The Kudlow Report" airs weeknights at 7 p.m. ET.
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