Also in this playlist...
This transcript is automatically generated
It's a good day for the markets.
Three days in a row is what we're looking at take a look at your down investors you can see -- -- my left shoulder their 138.
-- hundred and forty a little bit a while ago so to speak.
After last week's really unprecedented.
Volatility and you can see from this chart that the last week was well.
No doubt I'd never seen those kinds of swings in it's -- 115 year -- -- What to make of all this and what is does does this market tell you about the future for this economy chief market strategist at Russell investments.
Steve -- is here Steve.
Skip the Dow NASDAQ S&P market Russell.
The Russell 2000.
Is almost in bear market territory as of and the last week it was down more than on this night and a half percent from its recent high.
Down 11% year to date is that more worsen than what the broad markets are -- -- I think it's part of -- if you look at the Russell 1000 which is about 92% of the market cap and the Russell 2000 which is the bottom 8% of small cap stocks.
It gives you can has broad picture of the entire market.
And I think that when when economies are recovering when -- bouncing out of recession that recovery phase small cap stocks tend to do better of the Russell 2000.
As you move that's a say that we're bounding down right -- all -- -- -- -- or what I don't know means that but we're certainly not recovering briskly from recession into a strong growth environment so is that upward trend that that really benefit small caps.
And as you move into that more of recovery phase.
-- an expansion they've been larger cap names tend to do better.
But given the volatility that we're seeing out of Europe out of Asia and America I think -- these historical analyses.
May not be terribly informative it's more like a risk and result you actually being being honest in saying that I can't tell what what's happening with the economy based on these markets you can't even read them.
-- what I'm saying it will what part of it is nobody can tell the future -- -- data dame week to week.
Timeframe and you see this huge volatility take place -- -- days and over a couple days.
And you you're having this risk off trade where people just went to get out of anything that is not super dupers safe.
And investments like US treasuries or Jure German -- And we seen this happen for last -- people get excited about risk stock Brcko goes up.
They get worried and that sells off dramatic what's gonna bring that bring that risk trade pack on why I think we need -- I mean low interest rates many would argue bled to lower the rates get the more people more likely people will be to put risk back on I think so because it's forcing you out.
And what the Federal Reserve always does it by keeping interest rates low then make itself unattractive to be conservative and say that they force you to take more risks than you feel comfortable with.
And that's just the nature of of of a bull market are recovered but I think you're you're gonna see the economy the United States is doing.
-- -- is still too early to say it's recession but the probability is going up.
Europe is probably going to be the big issue we need to get some clarity out of Europe.
Europe right now is a mess I think the symbol of your can now become the question mark.
-- we just don't know where it's going like you favor not only US stocks that but you with bonds as well over what's going on in Europe I think I think so safe haven gonna benefit the United States are bonds will do better than their bonds almost by definition as the market gets worried.
And I think US corporates are doing great you're going to be -- but housing and unemployment which don't look fantastic to say the least.
But corporate America's never been healthier never leaner and you know stocks are -- so lot people and not put stock money and US stock funds for ten years and they never came back after the tech -- -- and you're also looking at these -- candidates selling off and so relative to what you're seeing around the world.
We think the US is attractive our economy's doing a little bit better than expected there corporations are doing much better than expected is not going to be great.
I think compared your -- it's going to be better than getting zero point 0% in fixed income does hold an state thank you Steve what is Russell investments take -- great to see you walk.
Filter by section