Friday, July 11, 2014 11:14 AM EDT
Nobel Prize-winning economist Joseph Stiglitz said on Monday he is "very uncomfortable" with current stock market levels, arguing they do not equal a strong economic recovery in the United States.
"The reason the stock market is high, in part, is that interest rates are low, wages are low and the emerging markets are still growing much faster than the U.S. economy, let alone Europe," Stiglitz said. He pointed to the fact that many U.S.-listed multinationals are increasingly getting a large chunk of their profits from emerging markets.
"These very strong stock market prices are in a sense a symptom of the weak economy, not a symptom that we are about to have a strong recovery to our real economy," he said.
Always remember that these are the results of our research based on the methodology that I have outlined above and in other articles previously published. This research is provided as an ...
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Always remember that these are the results of our research based on the methodology that I have outlined above and in other articles previously published. This research is provided as an educational tool and should not be construed as investment advice; rather, it is the result of our research. Please note, investments involve risk and unless otherwise stated, are not guaranteed. Past performance cannot be used as an indicator to determine future results. Strategies mentioned may not be suitable for everyone. We do not know your personal financial situation, so the information contained in this communiqué represents the opinions of Peter George Psaras, and should not be construed as personalized investment advice. Information expressed does not take into account your specific situation or objectives, and is not intended as a recommendation appropriate for you. Before acting on any information mentioned, it is recommended that you seek advice from a qualified tax or investment adviser to determine whether it is suitable for your specific situation.
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