Legendary Investor Byron Wien Gushes to CNBC: ‘The Economy is So Powerful Now’ Omicron Can’t Tank It

Blackstone Vice-Chair Byron Wien gushed about the strength of the current economy and predicted it will withstand the threat of recession due to the Omicron variant.

On Tuesday morning’s edition of CNBC’s Squawk on the Street, host Carl Quintanilla interviewed Mr. Wien, who is often described in the financial press as an investing “legend.”

Quintanilla asked Wien about the S&P 500’s ascent past 4,500 points.

“I believed at the beginning of the year, going back to January, 4,500 was my target,” Wien said, adding that at that point he’d expected the economy could be “vulnerable.

“And we’ve had a correction of those points above 4,500, but on the other hand, the earnings outlook has improved. The economy is extremely strong. The fourth-quarter earnings could be up 18 percent,” Wien said. “That may be reflected in the price of the S&P getting about 4,500.”

Asked if the Omicron variant would be felt in the economy going forward, Wien told Quintanilla “I really don’t know,” but that the strength of the economy is encouraging:

I know that Omicron is going to have an impact on the economy, but the economy is so powerful now. Almost every parameter you look at — I know the employment report was a little disappointing.

But unemployment is 4.2%. There are no layoffs. House prices are going up. People feel very secure about their jobs, the quit ratio is high.

So every parameter you look at, from employment to capital spending to small business indicators, purchasing manager indicators for goods, indicate the economy is roaring ahead.

So we’re going to have real GDP very strong in the first quarter — in the fourth quarter, maybe slower in the first quarter because of Covid, but I think, I don’t think a recession is imminent.

Wien’s comments follow a jobs report that featured lower-than-expected job creation, but a precipitous drop in the unemployment rate.

Watch above via CNBC.