Even with stocks mixed Friday morning, all seems well in the world. Eight consecutive days of gains and indexes at or near their highest levels since October 2008 will do that.
Is it a false sense of security or is this bull market for real?
Rochdale Securities bank analyst Dick Bove sees no reason why the market can't continue its winning ways. The bull market "is sustainable," he tells Henry in the accompanying clip.
Bove sees two major reasons for continued stock appreciation:
-- The world is awash in liquidity. "We still have $40 trillion, according to my calculations, in terms of worldwide money supply, growing at 6% a year," he says. "That's $2.25 trillion of new money created every year; it has to go somewhere."
-- Risk appetite has returned. From junk bonds to emerging markets to U.S. stocks, Bove says investors are once again chasing returns in riskier assets.
That won't necessarily translate to a robust economy. Bove forecasts 1%-1.5% GDP growth for the foreseeable future. That's not the good ol' days, but he also thinks it's not bad enough to turn off the liquidity pump.
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