Joe Battipaglia: The Economy Will Remain Weak

By on September 30, 2009

Joe Battipaglia, on Larry Kudlow’s show, argued that the economy may grow at two percent due to a one time boost from “cash for clunkers,” but that rate was not sufficient to generate new jobs. He added we were still experiencing a credit contraction with excess capacity in all industries.

Battipaglia also said the stimulus was adding to the deficit without generating new investment. He recommended an allocation of 50% equities and 50% fixed income (emphasis on corporate and munis over Treasuries), with 5% in gold (I know this doesn’t add up).

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