BofA’s Moynihan: There’s No Magic Bullet for US Economy… Sam Zell: Euphoria Will End, Stocks Will Tumble… Cullen Roche: “When The Air Comes Out of The Bubble, The Situation Gets Exacerbated On The Way Down.”
May 14th, 2013
BofA’s Moynihan: There’s No Magic Bullet for US Economy
Bank of America CEO Brian Moynihan sees nothing flashy in the comeback of the American economy — just a slow and steady slog that will continue.
Moynihan told The Globe and Mail he still observes an abundance of caution among the bank’s clients, both business owners and entrepreneurs, despite it being five years since the 2008 financial crisis.
“They are pretty conservative right now because of the uncertainty … It is kind of ‘I will do everything to make money and serve my customers well, but I will do it really thinking through whether I am overextending myself.’”
Sam Zell: Euphoria Will End, Stocks Will Tumble
Top real estate investor Sam Zell is predicting stocks will soon tumble.
“Right now you are buying at an all-time high,” Zell said at a hedge fund conference in Las Vegas, according to Fortune magazine. “And there are times when stocks hit a high, and then go higher, but that’s when you have a good economy.”
Stocks are up 15 percent so far this year and the Dow Jones Industrial Average has passed 15,000 for the first time. But while stock prices are booming, underlying fundamentals remain weak, said Zell, chairman of Equity Group Investments, noting his own companies are still struggling to increase revenues.
“The current euphoria in the stock market will be adjusted,” Zell stated, Fortune reported. “And I hope that’s all that happens.”