How to beat the $6 billion market bubble
SPY futures trading firm’s investment banking analyst said Friday that he’s bullish on the stocks and futures markets in which the firm’s portfolio is invested.
“I think the short-term sentiment has been really good,” said Kevin Johnson, who leads the firm, which is based in London.
Johnson noted that the U.K. and European markets have shown more resilience in recent months as investors have come to expect lower interest rates and more stimulus from Washington.
“That’s a big shift,” he said.
The S&P 500 index has risen more than 1 percent this year, compared with a 0.3 percent gain for the broader market.
“The short- and long-term market sentiment is very positive,” Johnson said in an interview.
“And I think we’re going to see that continue over the next few years.”
Johnson said that while the S&s are expected to grow by 2.7 percent next year, the S.&.;P.
500 is expected to drop by 1.5 percent.
Johnson, the firm and its partners have spent more than $6.5 billion on the stock market, up from $4.9 billion in 2015.
Johnson said the investment banks that have backed the firm include Deutsche Bank, UBS, Credit Suisse, Morgan Stanley and UBS Asset Management.
He said the firm has $5 billion in assets under management and expects the next 12 months to be the biggest in its history.
“We have a very strong pipeline,” Johnson added.
“It’s a lot of funds in there, we’re growing very quickly, we have a great pipeline of assets.”
Johnson added that the firm is still focused on the U