Economist Sinai: Equities bull run to continue - Bloomberg

As reported by Bloomberg, economist Allen Sinai stated in a BloombergTV interview that softening central bank stances and easing measures by China will help spark a revival of the stock market's recent bullish trend.

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“With interest rates going to stay fairly low as long as inflation stays low -- that’s the big surprise, low inflation everywhere -- you’ve got to be bullish on stocks,” Sinai said in an interview with Bloomberg Television in Tokyo. “The equity bull market will be back. It never left.”

The swoon in stocks last quarter was essentially a recession scare, with investors sensitive to the fact the current economic expansion is unusually long, Sinai said. The U.S. is on course to exceed its longest upswing on record by mid-2019. Yet Sinai, who has worked as an economist for more than four decades and personally known Federal Reserve chairs over the years, says current conditions are more like those in the third or fourth year of an expansion -- suggesting there’s plenty of room to keep going.

For now, “we’re going to get back a lot of what we lost last year” in the stock sell-off, Sinai said. Looking out over the next six to 18 months at likely policy moves, “that’s very bullish for stocks,” he said.