In Joy’s view, the rally in equities is based on a consumer-driven pickup in the U.S. economy, and the relative stability in the European banking system.
“Both things are well priced into market, so we’re going to have to see really good economic data in the U.S. to keep this rally going,” he said.
While waiting for the next round of economic data, some investors’ hands may be tied, given that bonds aren’t looking that attractive either.
Joy too is wary of bonds, but thinks the leveraged loan market is a good alternative.
“They offer relatively stable net asset values, credit quality is improving, along with an improving economy — and you can get a 5 percent dividend yield,” he said.
Additional News: Fitch Sees Leveraged Loan Market Improving
Additional Views: Stocks Offer Opportunity of a Lifetime: Goldman
CNBC Data Pages:
Disclosure information for Joy and Ameriprise was not immediately available.