"We don't think there's a bubble. There's a bull market. We need to make the distinction," Mark Keller, CIO of Gallatin Asset Management, tells Aaron Task on Wednesday's
"The Real Story" podcast. "Bubbles develop when novice capital starts to speculate -- we're not seeing that." Keller, whose firm manages over $9 billion in assets, adds that "private equity activity doesn't get this strong unless valuations are inexpensive. We think among the market generally valuations are not excessive." The market did not appear to be on the path to a big rally Wednesday -- certainly not a record-setting day for the Dow and S&P 500 -- after overnight weakness in China bled into other Asian markets. But U.S. stocks recovered from their early declines and then took off after the 2 p.m. EDT release of the minutes of the Fed's May 9 meeting. Whether investors focused on the Fed's concerns about housing as a sign of a pending rate cut or not, Wednesday's record-setting session is another reminder of the power of the bull market, says Task. "Buying the dips -- even minor ones -- keeps proving to be the right strategy." The gains came amid another round of M&A activity, including a private equity takeover of CDW ( CDWC) and a $55-per-share bid for Pennsylvania Real Estate Investment Trust ( PEI - Get Report), which gave a boost to other REITs, such as Public Storage ( PSA - Get Report), amid speculation of more takeover activity in the space.
Task's second guest, David Peltier, was on for the weekly "Should I Buy It?" email segment, with today's subjects including Coldwater Creek ( CWTR), Circuit City ( CC), Jones Soda ( JSDA) and Komag ( KOMG). In the remainder of the podcast, Task discussed the day's other corporate news, including Novacea's ( NOVC) huge rally; Qualcomm's ( QCOM - Get Report) legal setback; Solarfun Power's ( SOLF) earnings shortfall; and NiSource's ( NI - Get Report), Powell Industries' ( POWL) and Smithfield Foods' ( SFD) slipping into "the Geoff Tate Zone." Click
here to listen to the entire podcast.