Smith Barney Sees Multi-Year Bull Market In Equities

Global stocks are in the middle of a multi-year bull market that will last for at least two more years, Charles Reinhard, Morgan Stanley Smith Barney’s investment strategists said at a press event on Wednesday.

Reuters: “One of the great investment decisions someone could make today is to be invested in the equity markets, especially in the emerging markets,” said Reinhard during a press briefing on the firm’s 2011 outlook.

The S&P 500 Index (SPX) of large U.S. stocks has gained 79% since hitting the bottom in March 2009, but Reinhard said there are still plenty of opportunities for investors.

“Company profits have grown by about 30 percent this year, and stock prices are “crazy cheap” relative to bonds and cash”, he said.

Reinhard also pointed out that investors should consider U.S. companies with exposure to emerging markets such as China.

Barron’s: “It’s the G20 today, not the G7, it’s a new world,” with 11 emerging-market nations having been added. EMs have a 6% yearly GDP growing rate vs just 2% for developed economies he noted.

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