Financial giant Piper Sandler is taking a constructive stance on stocks amid concerns about an artificial intelligence bubble and a weak labor market, according to one of the company’s top executives.
Michael Kantrowitz, the investment bank’s chief investment strategist, tells CNBC says in a new interview that the stock market is witnessing its first widening in about four years.
“I think why we’re climbing these concerns: the macro data and the breadth of earnings data is the ladder that helps us climb a lot of these concerns. And I think those concerns are reflected in the rotation in the market that we’ve been seeing since October.”
Kantrowitz says the soft employment data has helped the Federal Reserve cut rates, which is part of the unfolding bullish story.
“I think the stimulus over the last few years in the form of a Fed rate cut, the 10-year rate cut, mortgage rates falling, oil prices falling and all the positive fiscal stimulus we’re going to see this year is a long list.
And that’s why we made the call last September that we will finally see the macroeconomy broaden, earnings broaden and the first sustainable rotation in four years.”
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