Founder & CIO of the Bahnsen Group David Bahnsen tells Fox Business Network the “decorrelation” between “what the market’s doing and what D.C. Is doing” is something “I’ve never seen in my life”
In an interview to be presented Friday evening on FOX Business Network’s (FBN) Wall Street Week, founder and CIO of Bahnsen Group David Bahnsen discussed the relationship between Washington D.C. and the stock markets, investing advice, and more with anchor Maria Bartiromo.
Below are early excerpts from the interview, airing tonight Friday, July 28th at 8p/ET.
Michael Gelband's hedge fund ExodusPoint ended 2021 on a strong note after its Rates strategies contributed 1.16% to overall performance in the month. According to a copy of the fund's December update to investors, which ValueWalk has been able to review, the ExodusPoint Partners International Fund Ltd rose by 1.95% during December, bringing its year-to-date Read More
On whether he would put new money into stocks today:
“I would, and I’ll tell you I think it is a great environment to be owning stocks right now. It’s a rare blend of conditions where you have pretty low inflation, and you have global conditions that are across the board better. I mean think back to where we were a year and a half ago, it’s not just one or two places. It’s emerging markets, but it’s Europe, Japan, China, all of which have kind of settled. In the meantime, the real story is this earnings acceleration here in the United States has been fantastic. The problem of course is valuation and then there’s always this concern about Washington D.C. and the ongoing volatility. But what I’ve never seen in my life is a decorrelation like this between what the market’s doing and what D.C. is doing. The markets are shrugging off virtually anything coming out of the White House. Anything not getting done on Capitol Hill and I think the reason for that is a healthy earnings environment in corporate America.”
On whether a strong, fundamental economic base is driving markets and not what’s coming out of Washington D.C:
“That’s exactly right. And so, do you have a strong earning environment and there is still hope for potentially maybe a free call options on something good out of D.C. I don’t think that they’re overly worried. You remember where we were six months ago? We were optimistic about healthcare reform, we were optimistic about tax reform but we were worried about trade. We were worried about some of the protection in this rhetoric. At this point most of that is looked to be a lot more bark than bite so you would think the markets would be happy about it but then they’re not getting the other things done.”