By Sam Boughedda
Talking to Bloomberg, JPMorgan Asset Management’s David Kelly said the stock market could hit record highs within the next few years.
Kelly made the statement due to the economy showing signs of cooling. He told Bloomberg Television that in order "to be a bull on stocks, all you have to believe is that you’ll get there within, say, the next three years," adding that he believes it is eminently doable.
Stocks have rallied since their mid-June lows, with the S&P 500 hitting a three-month high on Wednesday following a faster-than-expected CPI print. However, it declined during Thursday's session.
Kelly stated it will take time for inflation to move back down to 2%, "but so long as we are making progress in that direction, there is no need to tip this economy into a recession.”
Kelly believes a period where inflation is slowly coming down and the economy is trudging along with margins maintained provides a pretty good outlook for the equity market.
The chief global strategist added that he would be "fully invested in equities at this point" because he believes equities can move higher here.