US is on its way to recovery: John Bolllinger

Brisk US factory activity data and a commitment to easy monetary has led to optimism in the markets pushing the US treasuries near a two-year high. John Bolllinger, President, Bollinger Capital Management spoke to CNBC-TV18 regarding the US jobs data and what is market expecting going ahead.

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Below is the verbatim transcript of his interview on CNBC-TV18

Q: What do you make of Thursday’s data and what it means for the market being able to climb further ahead? A: The data is quite constructive. The market is looking for meanings from an economic strength and Thursday’s data fits the bill. No matter how you look at it, it says that the economy is quickening. Part of the problem here with this rally is it has carried the stock valuations to relatively high levels. The only thing that can justify that in most investors’ mind is growth. So they are looking for growth under every stone and now every stone they picked up, there was little sign underneath of the Fed growth and therefore, they are pretty happy. Q: Whenever a mention of a taper has taken place in the past, it has spooked this market and yet we have got good data, consistent expectations for a taper beginning in September, is this market finally prepared for a taper, has it started pricing it in? A: I think that the taper is a non-issue. The market has already tapered. If you take a look at the 10-year yield within the past year, it was as low as 1.4 percent.