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SUBJECT: Told ya it was all BS
Submitted by
Fshfndr from KANSAS on
"The Illusion of Prosperity": U.S. Destined to Lag Rest of the World, Peter Boockvar Says
Posted Nov 19, 2009 09:00am EST by Aaron Task in Investing
Related: FXI, PGJ, HAO, GLD, EEM, GDX, RTH
"It's dangerous to be short this market," says Peter Boockvar, equity strategist at Miller Tabak.
Despite a penchant for bearishness, Boockvar says the rally can continue as long as the Fed keeps rates at zero.
"When you cut rates to nothing you're encouraging people to take risk," Boockvar says. "As long as asset inflation is [the Fed's] goal, the market could go higher but there are obvious consequences," including inflation, as discussed here.
The Fed is trying to create "the illusion of prosperity" by fueling asset price appreciation, Boockvar says, staying true to his reputation as a deficit hawk. Even if the U.S. stock market keeps rallying, "non-dollar assets" like commodities and emerging markets will continue to outperform, he says.
Unlike the U.S., emerging markets are "not weighed down by enormous debt levels" and local consumers are "much better off" than their American counterparts, the strategist says, expressing a strong preference for China
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