Stocks have been rallying in the last few trading sessions, but there are concerns that the economic recovery could freeze and affect market gains. Robert Barbera, chief economist at ITG, shared his economic insights.
“I still think GDP is closer to 5 [percent] than 3 [percent] in the first quarter,” Barbera told CNBC.
“The inflation number is very good...so strong growth, low inflation, what’s not to like?”
Barbera said the market recovery is “genuine” because it’s driven by monetary stimulus—“which the Fed is not going to take away until everyone agrees it’s genuine and strong.”
“First year of a recovery after a deep recession, you’re supposed to have a strong number and then settle into a cruising speed,” he said. “If you're worried that we may be changing the long-term trajectory because of a larger government presence, that’s a legitimate discussion.”
“But all I’m saying is, when you think about a double-dip or earnings that can’t support this market right now, I think a year of strong growth and all of those concerns are allayed,” he said.
- Watch Barbera's Previous Appearance on CNBC (Apr. 2, 2010)
- Pisani: Dow Is a Bad Market Indicator
- Markets in For 'Some Tough Sledding' by Fall
CNBC Data Pages:
Top Dow Leaders (As of this writing):
Bank of America
No immediate information was available for Barbera or his firm.