MutualFundWire.com: Gorman Pops Finks' Bubbles

MutualFundWire.com

The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication

Monday, November 4, 2013

Gorman Pops Finks' Bubbles

Bubbles? What bubbles?

BlackRock [profile] CEO Larry Fink recently made the media rounds declaring that the markets are bubble-like.

Now, Morgan Stanley [profile] CEO James Gorman is making his rounds disagreeing with Fink.

Gorman recently was interviewed on Bloomberg Television, with a transcript provided by the Seattle Post Intelligencer. On the subject of whether he sees any bubble, Gorman declared:

Not really, no. I don't. I see the equity markets. The S&P is trading at 1700 and change. It is frankly not bubble like relative to the year 2000, 2005, 1995 and so on. On the equity markets, no. There's a lot of robustness. The indices have rebounded tremendously, but from very low levels. There has been a flood of money out there through the quantitative easing program. It has been necessary to get this country back in balance, so no, I'm not sure I'd share that view.

On the subject of the Fed's quantitative easing, Gorman declared "The reason they're keeping it in place is because the economy is not growing. The economy is not doing what it is supposed to do, which is creating jobs."

Printed from: MFWire.com/story.asp?s=46636

Copyright 2013, InvestmentWires, Inc.
All Rights Reserved