How Strong Is the U.S. Economy?

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Mainstay Investments Charles Reinhard discusses the markets and the economy. He speaks on "Bloomberg Markets." The hosts asks Reinhard, "Where are you getting your optimism?"

CHARLES REINHARD: Well, if you think about it, bull markets don't die of old age. They die either because of expensive valuation or irrational exuberance or runaway inflation, and we don't seem to have any of those things at the moment...or recession.

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But you have positive economic growth. You have a positive rate of inflation. And that is the sales line for many firms. And so, as a result of that, you think that the total level of profits is going to be higher in the future than it is today. And we're right at that inflection point, and I think that the market is aware of it. And that's why the market has advanced as much as it has since February 11.

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