Biggs Sees Market Moving Higher

Hedge fund guru Barton Biggs tells Charlie Rose that he expects the next major move in the market will be to the upside, and says he thinks the U.S. would be wise to add more stimulus into its recovering economy.

Biggs says he’s looking for the market’s next big move to be a 10% to 15% rise. He does see the U.S. having slower growth in coming years, because of the lingering effects of the housing bust. He says European economies in better shape than the U.S., and he’s particularly high on Asian markets, from China to India to smaller developing nations.

Among Biggs’ other key points:

• He’s not concerned with the ballooning federal deficit;
• He thinks China is not in a bubble state, and that domestic Chinese demand will make up for slower exports;
• He thinks it will be hard to regulate fear and greed out of the market, but he does support the separation of investment banks and deposit-taking institutions;
• He sees the tech sector as one of the more exciting areas of the market, and expects a new wave of tech spending and innovation;
• While he now has a more international focus, he says his investing principles remain the same today as they were 15 years ago.