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Indecision To Drive the Markets?

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  • Description

    Lord Abbett's Senior Economist Milton Ezrati argues the markets will be volatile for a long time.

  • Duration 4:09
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-- where should investors be looking.

To actually put their money to work or at least protect what they've got -- -- those -- lord Abbott senior economist and market strategist is hearing you say that indecision.

Is gonna continue to drive the markets a -- and you're saying more volatility ahead.

Are you at the right now the market is beset by a lot of fears.

It goes up when those fears -- and it it goes down on those -- become more intentions of prescription for volatility.

We think there opportunities here but we're not going to avoid the volatility for a long.

It on -- -- -- let me ask a couple of questions here first and foremost about you know I was looking at some of the sectors that are moving in L I -- that was and I were talking about some of these.

Maybe it safer sectors cyclical sectors but overall it seems like no matter where you put your money going to be very very particular about what your choices are is -- -- second that you favor.

Right now more than another.

Well right now I mean you do have to be particular what names you Barbara right now we would favor of the more cyclically sensitive sectors they are the ones that have suffered the most.

If we're right the market is price for disaster.

And even if things aren't that good if we just relieved that the disaster the biggest pop is going to be in the cyclicals and that would be the industrials to consumer discretionary.

Even the financials could do very well in this environment.

Are you like the financials I think -- that's interesting very heavy industrial news about a wanna bring you Linda Vista there were just talking about this I mean.

These are names in non camping -- banana the thing that there was a closer look.

Sure so in the industrial base -- -- looking at you know name think Danaher Emerson that are only tool works recoveries a bad that they're reasonably diversified but they're just well managed companies.

And lots -- growth opportunities around the world that historically.

You know they've they've incorporated the just in time inventory.

The lean manufacturing all of the best things that that American industries done for a long time and so.

You know they're the ones are gonna come out of this reasonably well we think.

And Milton low when I wanna ask you about the financials one of the things that's been happening today as we look at the financial sector overall lot of news crossing up banks trying to -- -- an extra pay for this an extra -- that debit cards.

Things like that is that why you actually like financials right now.

Well that's held.

But I think the issue here is is that the market has been some beset by all these He is from Europe not suggesting that there aren't a lot of risks in Europe.

But if the Europeans can get a handle on the situation in -- -- signs that they will.

Then a lot of the fear that is to set the whole financial sector on both sides of the Atlantic will lift and we will get a move in those stocks.

Milton it's -- -- if you had to guess our US large cap stocks probably be most undervalued asset in the world right now.

One name one final.

Well the US and large cap stocks in the US are extremely undervalued by some valuation measures I can't answer for every place in the world.

But -- by some measures they they look actually cheaper than they did in the Great Depression.

Why per LA OK rob us very -- what about technology you know not we've been talking a lot today about the death of Steve Jobs in the future of apple but overall the technology sector.

Seems to have been one of the better performers.

Over the last few months is that continued event.

I think it will I mean in this respect technology is really more like it like an outgrowth of the industrials area there is no no new new new new thing.

So that it's not really trading on on that some new gimmick or some new application it's trading.

On the economy it's gonna move with the industrials probably with a higher beta that is to say -- exaggerate the movement industrials -- Well I think I'm not I do wanna ask you about European banks we've been talking so much in our viewers -- -- -- if you -- have been hearing nothing about how Europe was affecting the United States.

If indeed there is a Euro bail out if you -- of the banks have been there weather comes the Germans are I guess who really cares.

What does that mean for US markets is -- give us a booster do it is kind of tread water.

I think it'll help give us a boost I think a lot of people particularly in the financial sector but the economy in general.

People realize how vulnerable we ought -- this sector and it it dissect this situation in Europe.

Any relief on that front even if its partial will lift stock markets and -- -- the prospects for our economy to.

-- -- -- lord -- his senior economist and market strategist thank you --

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