In his semi-annual monetary report to Congress Wednesday, Federal Reserve Chairman Ben Bernanke reiterated the Fed's plans to keep interest rates low "for an extended period."
Investors responded by buying stocks: the Dow rose 0.9% Wednesday while the S&P and Nasdaq each climbed 1%.
Rallying was the right response, says FusionIQ CEO Barry Ritholtz: "As long as the Fed is going to make money free…it’s hard to find a short."
Though not as bullish as he was last March when he called the market bottom, Ritholtz is sticking with stocks. "The easy thing to do now would be to go to cash," he says, a reference to Robert Precther's recommendation here. "[But] I rarely find that the easy trade is the one that makes you money."
Instead the money manager and blogger has turned more bullish on the emerging market economies that have withstood a weak American economy. His favorites are South Korea, Brazil, Taiwan, and Singapore.
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