Reuters Summit-Prudential's Keon sees stocks beat bonds?|?Reuters 

Reuters Summit-Prudential's Keon sees stocks beat bonds?|?Reuters

(For other news from the Reuters Investment Outlook Summit. June 12 (Reuters) - Even with the recent sell-off. U.S. stocks remain a compelling investment and may be poised to see better returns than bonds as earnings growth stays strong. chief investment strategist at Prudential Equity Group. said on Monday.
He told the Reuters Investment Outlook Summit in New York that he has been bumping up his weighting on equities over the past few months as valuations "have in fact fallen to what I think are very cheap levels."
From last July to Feb. 6. Keon's asset allocation was 100 percent stocks. but worries about inflation and weak earnings growth caused him to cut exposure to stocks to about 55 percent. he told the summit.
Wall Street has enjoyed four years of double-digit earnings growth. helped in part by historically low interest rates. by record profits from the energy sector amid record crude oil prices.
"The biggest single thing is that earnings have been much better than I thought they were going to be. I think in the second half of the year. despite that we expect an economic slowdown. I still think we might well see double-digit earnings growth." he said.
Even though stocks have fallen sharply in recent weeks and Wall Street thinks the stock market is in a funk. individual investors who focus on picking stocks for the long-term are still poised for growth.





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