Markets could grow by 8 to 12 percent next year, the chairman and CEO of mutual funds company the Dreyfus Corporation, Jonathan Baum, told CNBC Friday.
“We are bullish, we’ve been bullish for a little while,” said Baum.
“A lot of the volatility in the market was uncertainty. What you’ve seen happen is that the American people have spoken and the President is listening.”
Baum said the tax bill approved by the House around midnight Thursday and to be signed by the President Friday afternoon will stimulate growth. “There’s a lot of pent-up demand from corporations, and this [the tax bill] takes away a lot of the uncertainty,” added Baum.
Baum said that capital spending have been on hold because corporations were waiting to find out what would happen with taxes.
"Now, there will be an increase in CapX (capital expenditures), an increase in dividend increases and, as that happens, we think earnings are going to continue to be strong,” he said. “That’s what’s driven the market so far, and we think there will be good corporate earnings in '11.”