Thursday, June 12, 2014

Stocks “Getting Into Dangerous Territory”: Komal Sri-Kumar


The stock market has been on a tear lately, with the Dow and S&P 500 hitting a series of records. And while the market has been described as “boring” as volume and volatility recede, every major asset class — stocks, bonds, commodities, emerging and frontier markets — was up year-to-date as of Tuesday, making this certainly a unique and interesting moment.
Komal Sri-Kumar, president of the investment firm Sri-Kumar Global Strategies, says a dangerous conglomeration of factors is conspiring to threaten the rally.
“My concern now is we’re in the sixth year of monetary easing, going into the seventh, and still don’t have economic growth pickup to a sustainable pace,” he says. “We’ve done [easing] for a long period of time and there’s still no improvement for the growth picture.”

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