Today's interview is with Richard Bernstein, CEO of Richard Bernstein Advisors.
BUSINESS INSIDER: To what extent do you think poor weather has impacted this winter's economic data?
RICHARD BERNSTEIN: Who knows, but it is unlikely that the economy just stopped.
BI: What's the big story that nobody is talking about right now?
RB: The extreme undervaluation of high yield municipal bonds. Interestingly, in December and January it was more expensive to protect against a Puerto Rico default than it was to protect against a Ukraine default.
BI: Are you optimistic about Janet Yellen as Fed chair?
RB: People think of the Fed much too narrowly. Yes, they set monetary policy, but the Fed is also supposed to be a regulator. Greenspan was anti-regulation, and Bernanke had bigger issues on his hands cleaning up Greenspan's mess. Yellen might lead the Fed to again be a regulator. Tighter bank regulation (or even bank regulation period when compared to the Greenspan years) could be a form a tighter monetary policy.
BI: The stock market is roaring back to all time highs. Do issues in EM not have as big an impact on U.S. markets as people argued a few weeks ago?
RB: The issues in EM actually benefit the US economy. Lower commodity prices, a stronger dollar, and a rush to US assets are all good for the US. Certainly, it's not all good for US multinationals, but it could be a very good environment for domestic US stocks.
BI: What's something you'll be watching this week and next?
RB: The Knicks continue to lose. I hope they don't resign Carmelo…