Ritholtz on the Economy/Market Disconnect

Barry Ritholtz of The Big Picture blog and Fusion IQ says that, while the economic recovery is anemic, a number of other factors are making stocks continue to look attractive.

Ritholtz, who called both the market crash and the recovery, tells Yahoo! TechTicker that as long as the economy remains weak, the Federal Reserve will likely keep interest rates at historically low levels, which is a bullish sign for stocks. Those low rates and the government stimulus efforts — not profits — are what is driving the market, making it so “cash is trash”, he says. Disconnects between the economy and the stock market like the one we’re seeing can go on for years, he adds.

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