Bloomberg TV"On the Markets" August 11, 2006
Nick Calamos Shares Positive View of Economy and Market Opportunity
In an appearance on Bloomberg TV's "On the Markets," Nick P. Calamos, CFA, and Co-Chief Investment Officer of Calamos Investments expressed optimism about what's to come in the stock market over the next six to 12 months.
"We definitely think stocks are very attractive," Calamos said. "We think there's going to be a snap back here very much like we saw in '94."
Citing the pause earlier this week in the Fed's rate hikes, Calamos said the current level of inflation shouldn't stifle growth, but, on the contrary, should be able to support continued economic expansion. (For historical examples that support the view that growth does not necessarily stoke inflation, see "Beware of the Bears?")
Although he acknowledged high energy prices and a slowing housing market as factors that are likely to pose challenges in the economy going forward, he said those should be offset by higher wages and continuing appreciation in household net worth, which would in turn extend strength in consumer trends. Calamos highlighted strong business spending as an additional factor driving growth.
Regarding stocks, Calamos said larger companies are showing the best potential in the current market environment. "Big-cap growth stocks are about as cheap as they've been in a generation," he said.
And despite the fact that technology has had a difficult year—with the Nasdaq trailing other major indices—he said he still sees potential in many technology companies. The Calamos portfolios, he added, remain equally weighted, if not overweighted, in technology relative to their benchmarks.
For more on Nick Calamos' view on the market and long-term investment opportunities, please visit our commentary section.