Pozen: ETF—Greatest Thing That Happened

NYSE Traders
Oliver Quilla for CNBC.com
NYSE Traders

Robert Pozen, MFS Investment Management Chairman and Former Fidelity Vice-Chairman told ETF is the “greatest thing that happened” to active mutual funds.

Pozen said, “It makes stock pickers more important. I’d love to see these guys blindly buy a whole index. No one's looking to see which stocks really deserve the prices or not. So if the whole world changes to index, and whether it's through exchange traded funds or passive funds, the traditional ones, it's really a good thing for active stock pickers. It makes them more valuable."

Companies Cash Cushion

When it comes to corporate earnings, Pozen said numbers look “pretty decent.”

However, companies are still a little reluctant to spending.

There’s over $1.8 trillion on corporate balance sheets right now.

“It’s reasonable to keep the cash cushion, considering what happened (referring the financial crisis),” Pozen said in an interview with Maria Bartiromo on the Closing Bell.

Light Weight

As to why volume has been so low in recent weeks, Pozen said “people need to have a little more confidence” in the market.

Pozen also commented on FinReg and the need for legislation for Fannie Maeand Freddie Mac.

Crystal Lau contributed to this article.



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