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This up so we're getting an idea of what President Obama is gonna propose on the jobs front tomorrow.
Will any of it make any difference to this economy to the stock market Charles but we're going -- the highest analyst -- investment.
Director -- It's so it -- a lot of what we have come to expect an extension the payroll tax cut spending on infrastructure projects -- grab bag.
Of -- various items but as -- invest our.
Will it really make any difference to our economy in the stock market -- thank.
Actually know is the short answer to that I think -- the speech tomorrow have very little effect.
There's some bad precedent for these speeches having a negative effect.
On the stock market when people get disappointed.
By what gets said but in this case actually think expectations are pretty low and so -- have very little effect.
At how much because you saw confidence -- -- investor confidence consumer confidence.
Really shaken over the summer Charles and terms -- particularly the debt fight and I wonder.
What you can expect to come out of Washington it in the next year our -- whether they will do more harm than good.
Yeah I personally wouldn't say that the debt fight was the major negative they came out of Washington -- major.
Negative has been a slowing economy and trouble in Europe those are the two big things.
So we're really in a situation where we are hoping that Washington does no harm.
That Washington make some progress -- that maybe Washington slows down some of the regulatory wave.
That everybody sees coming in on that point I think you can be somewhat optimistic.
The recent trends from regulations coming out of Washington have a slow there's been some realization that that's doing more harm than good.
When terms of harm or good if you look at what has happened with the ten year treasury and I at focus on what was going on yesterday with.
That close below the 2% level.
Is that reason for worried are ultimately do you think that these lower rates will certainly help not only individuals but corporations.
-- what that gives you an indication of is the fear level that that is very high people buying treasuries that less than 2%.
Only makes sense if you are extremely afraid.
When the markets are afraid when the populace is afraid that tends to be a good time to buy stocks you don't wanna buy stocks and -- -- complacent.
And things were only going up so I actually take that treasury being at less than 2% is a positive.
From a contrarian point of view.
What -- talk about contrary in and you're talking about com.
What you will make on bonds vs stocks and some of the specific companies that you -- it is really shocking.
At what you get paid to lend it money to the company's verses what you get paid to actually be in -- -- up the company.
I'm glad you brought up that point I mean this is almost done testing you've got to go back to nineteen and 1920.
To find a time when the dividend yield.
That a company was paying out was higher than its bond -- that's just never.
Companies pay out less than half of their profits and dividends.
So to me it just makes no sense that you can get a higher dividend yield on Johnson & Johnson.
And you can get on their bonds you've got to be unbelievably pessimistic.
To think that you'd rather on the bonds.
It is not just J&J Charles I could I believe at one point.
It was that the same went for IBM as well what you also -- That's right they are now a -- of these high quality companies that are.
Not credit risks that the dividends should be very very safe and should grow over time.
Where the dividend is now higher than the return on their bonds to me that's a very bright signs saying that.
Stocks and -- Charles well you said it all and thank you for that a lot of information terrific to see Charles members boy he's vice chairman -- for aerial investments be well.
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