Stocks fell on Thursday, erasing their gains from a higher open, but Michael Cuggino, president and portfolio manager at Permanent Portfolio Funds, said he still see the markets as “glass half-full.”
“Liquidity is there, corporate profits are there, interest rates are low and dividend yields are very favorable versus bonds,” Cuggino told CNBC.
“I think net-net, it’s a good environment for stocks and the economy in general.”
Cuggino doesn’t believe that a double-dip recession will occur, but sees slower growth as likely.
“The economy is still growing at an approximate annual rate of 2.5 percent, so we have a jobless recovery driven primarily by corporate profits and lackluster consumer demand—but it’s growth nonetheless,” he said.
Cuggino said there needs to be higher job growth and more consumer spending.
"That will drive some of the volume and business activity levels even higher," he said.
Scorecard—What He Said:
- Cuggino's Previous Appearance on CNBC (Jul. 20, 2010)
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No immediate information was available for Cuggino or his firm.