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One Of The Top Ranked Financial Advisers Thinks Stocks Can Rise 50% - But Don't Call It A 'Trump Rally'

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One Of The Top Ranked Financial Advisers Thinks Stocks Can Rise 50% - But Don't Call It A 'Trump Rally'

Andy Chase, one of the top ranked financial advisers, was a guest on CNBC's "Fast Money Halftime Report" Friday to share his bullish outlook for the stock market.

Chase, a financial adviser with Morgan Stanley, oversees more than $20 billion in assets. He thinks the stock market is due for a 50 percent gain over the next few years. He cited the potential for earnings growth and low interest rates generating a slow-but-steady economic improvement, which will push stocks even higher.

However, Chase isn't ready to attribute the continued bull market as being part of the "Trump rally."

Not Part Of A 'Trump Rally'

"I don't subscribe this is a 'Trump rally' or things like that," he explained. "I think it has been pent-up. The amount of cash in M2 has been rising three, four, five years — I think it was under $10 trillion. It's now over $13 trillion."

See Also: Is The Rally In Bank Stocks Over?

Chase continued that a lot of this cash has been sitting on the sidelines during the election race and has been put into stocks as the business environment has been doing OK — although not as well as many CEOs and politicians prefer. Moreover, he isn't getting the sense that investors are worried about real estate and other asset classes.

Finally, Chase singled out the financial sector as a good investment since the group as a whole is trading cheaper versus the S&P 500.

At last check, the Financial Select Sector SPDR Fund (NYSE: XLF) was up 0.48 percent on Friday, trading at $24.98. The ETF is up 7.38 percent year-to-date and roughly 25 percent since the election.

The SPDR S&P 500 ETF Trust (NYSE: SPY) was last seen flat on the day at $238.29. It is up 6.6 percent year-to-date and just shy of 12 percent since Election Day.

 

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