Barry Ritholtz: Yes, The Economy’s Lousy, But Stocks Still Look Good
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The stock market got off to a surprisingly strong start in January, posting the best first-month results in more than a decade.
This despite the fact that the economy itself continues to be disappointing, with weak job creation, high unemployment, and sluggish GDP growth.
But Barry Ritholtz, the chief investment strategist at FusionIQ, isn't surprised by this. Having come into the year "fully invested" in stocks, he has been looking for reasons to sell, and he just hasn't seen any yet.
But what about the concerns of fund managers like John Hussman, who say that market conditions like today's almost always lead to sharp pullbacks over the next six months?
Barry's not buying it--at least not yet.
All the free money the Fed and the European Central Bank are pumping into the system is flowing straight into asset prices. And for now, anyway, this ocean of cash is drowning concerns about fundamentals.