Strategas managing partner Jason Trennert stopped by "Breakout" to talk global economies and investments, and he offered the case for believing in American stocks right now.
While he's cautious on overseas markets, Trennert sees the U.S. shaking off global unrest thanks in large part to stimulus from the Federal Reserve. The U.S. is "exporting inflation" by flooding the markets with easy cash, a strategy that supports the value of domestic equities, he tells Nesto and me.
Trennert advises gravitating toward what used to be called "first world" countries and shying away from emerging markets. Of particular concern is China, where he sees mounting problems due to a central planning goal of 0% unemployment.
What could derail Trennert's forecast for U.S. stocks "grinding" higher? Not global unrest, but rather too much of a good thing in the form of inflation. If the same governments currently printing money to goose their economies are forced to put the clamps on, it could lead to lower stock prices around the world.
Until then, Trennert is guardedly optimistic and decidedly patriotic. Be sure to watch the clip to hear what else Jason has on his mind.
Also be sure to send us an email with your comments and questions. Reach Jeff Macke and Matt Nesto at email@example.com.