Milton Ezrati, partner and senior economic and market strategist at Lord Abbett said that while there were three major concerns driving moves by markets, the economic opportunities in the markets were by no means as bad as they might appear.
Speaking in a Wednesday morning call presented by EnvestNet titled, “What’s Moving Markets,” Ezrati (left) said that “while there is very little good news to talk about in a historical sense,” the problems faced by the world economy were priced-in already and those problems were unlikely to escalate. The three concerns he referred to were the European sovereign debt crisis, the fear of a double-dip recession and the congressional supercommittee’s report about the fiscal situation in the U.S.
Although repeatedly stressing that none of the news was actually good in a historical sense, Ezrati sounded positively upbeat as he discussed the “good” news, which he said came in two parts:
First, that both stock market and credit-sensitive fixed instruments are priced for disaster or near disaster, and second, as bad as the situation may be, “we are going to avoid disaster. Lord Abbett is bullish on credit-sensitive instruments and equities,” he added, continuing, “We think there’s more to go in this market. It’s very cheaply priced for a disaster that will not occur.”