GAMCO Investors Inc. (GBL, Financial) Chairman and CEO Mario Gabelli (Trades, Portfolio) said in a CNBC interview on Wednesday that the global economy is expected to stay strong in 2020, countering views made by Bridgewater Associates founder Ray Dalio (Trades, Portfolio).
Gabelli, who will speak at GuruFocus'Â value conference in May, listed several encouraging reasons for growth in three key markets: the U.S., China and Europe.
Guru challenges view of ‘economic recession’ in 2020
While he pointed out even the International Monetary Fund is predicting “3.6% real growth with slowdown in 2020,” Gabelli underscored that the said growth is “global” and that the markets still have strong potential for growth. For the U.S., the fund manager said when Gabelli Funds looks at market perspectives for first-quarter 2020 in September, the U.S. would “solve the China problem” and “put the [government] shutdown behind us." Additionally, capital and infrastructure expending is expected to improve as the Senate and House of Representatives are still expected to agree on a new infrastructure bill.
While Gabelli said there will still be a slowdown as “no one will believe a 4% yield is sustainable,” the fund manager still caps the U.S. growth as “2% real growth with 2% inflation,” for a total nominal growth of 4%.
Guru also sees strength in global markets
Gabelli then said China has helped its citizens “stimulate the economy” and alleviate the company’s debt situation through financing. In Europe, the fund manager expects a stronger economy through Russia President Vladimir Putin and energy.
Guru will speak at value conference in May
Gabelli, Morningstar Inc. (MORN, Financial) Portfolio Manager of the Year in 1997, joins fellow gurus Francisco Garcia Paramés and keynote speaker Chuck Royce (Trades, Portfolio) at the value conference on May 3, the day before Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial) co-managers Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio) host their next shareholder meeting in Omaha, Nebraska. Register now and save $200 off the regular price.
Disclosure: no positions.
Read more here:
Bridgewater’s Ray Dalio Says There Is ‘Significant Risk’ for a US Recession in 2020
