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Well our -- guest says that the markets will continue to trade lower through the end of the year he says -- the S&P will retest its lows right around 11100.
But he expects things to turn around it next year joining us now as -- -- -- Tina.
Senior portfolio manager for Huntington asset -- management.
Peter I want to talk about gold because you you heard Eric Bolling -- second ago.
Saying -- he's a buyer of school at 14100 I read your notes I also know that you are predicting that gold will hit 2000 dollars an ounce.
As early as that first part of 2012.
What is your rationale why do you guys -- white days why do you think.
The year are -- at odds with his calls.
Well I think in the longer term were were relatively similar.
But our view is that.
What we've seen here in the last four years is the money supply in the US is effectively tripled so if you just -- the price of gold wrote the number of dollars outstanding constant.
Gold would already be much higher.
What we've got this year is unique situation where my all -- hedge funds about a horrible year and so we're coming up on year and -- possibly facing a liquidity squeeze.
And their base of -- sell -- that which they have still got gains and probably their crude oil positions when WTI broke to a hundred and probably their gold positions.
I go back and look at supply and demand -- for these commodities and for both elements the supplies falling.
And if you look at the demand the central banks around the world have already announced their plans for next year to add to their gold reserves the Chinese are buying.
The Russians -- essentially confiscated all of their domestic production for next year.
The venezuelans nationalize their gold mining industry so.
Demand is still there are supplies are dwindling the good reserves are gone.
So it's a good supply and demand backdrop right now we have some you know market instability that's causing a run for the dollar but.
Our view is that ultimately you can't hide the fact that we just been printing dollars and euros and ultimately that benefits gold.
He had -- pay the piper at some point Peter another bullish call that you have is that you actually believe that Europe will get its act together in 2012.
That is -- prophecy that we.
Most people aren't willing to take because they believe that this -- noble.
Will get drawn out until 2013.
Meeting and 20141.
XE so optimistic.
Well because it can't go any further really I mean we've already had 5.
Basically pull together to prevent a Lehman moment a couple of weeks ago we had liquidity that tight.
It's they're running out of time basically don't have until tooth totaling thirteen.
It has to happen sooner and as well my clients Wen said that which I can't happen won't happen so.
You know Europe is not gonna go -- collapse is not going back to stone ages.
There's some excellent companies in Europe there are some very strong economies there yes they've got some structural issues right now.
But in the end you resolve this pretty quickly you basically restructure all the deaths.
And tell those folks the G tastes are you know you -- this you know -- thousand euros -- gonna -- 600 back.
We do that with a Brady bonds and Latin America up with them on financial austerity.
Was painful but they came out of it now the powerhouse of the globe for growth so it can be done and it can be done quickly it's it's a question of political resolve.
Peter let's talk about some of the ideas that you like you we've got a minute left but -- I -- go over these I did not find them pretty unique and it's not the typical ideas we've been getting Chicago bridge and -- first of all why do you like this one.
Well right now the US is on the cusp of becoming a natural gas exporter.
We found so much shale gas the world is obviously going to be short natural gas liquefied natural gas goes for premium around the globe.
Fifteen dollars and MCF equivalent.
Here it's selling for less than four.
-- Chicago bridge and iron has a huge technological footprint in terms of -- -- natural gas so.
We think long term the fundamentals for them are very solid.
-- long history -- -- company so one that we feel pretty confident with.
You know you talk about the market being trapped in a trading range and I agree with you -- a thing.
That they're also much more painful on days and weeks like this them forward there -- a breakout point.
Can investors continued to endure the sort of psychological torment.
And that's a great question basically we've done so much the last couple of years to to rattle investor confidence.
But in a way that's really where you build the most solid base for the next bull market advance its -- you know I think back to those who are in the market in 1974.
Essentially they had been bludgeoned almost senseless.
And you had magazine covers talking about the death of equities we get to that level that's when it's really safe to come back in and a big way and you know frankly you said it's been relentless in terms of the pounding we've taken so at some point the market was going down on bad news and that's when you get really excited about -- equity.
And what do what only the break out then what's gonna break -- I was gonna get us out of this range what's going to be the catalysts will indeed be some sort of closure.
Even if -- what Fuzzy math in Europe.
That will free up the US banking system and right now that's been the the thrust of the real high wire here is we've not been able to break away.
Because our financials system is is really tied to what happens in Europe were were were bonded at the hip.
So a resolution there frees up our banking sector.
That then allows us to advance the market and really take advantage of some of the strength we've seen a lot of other industries in North America here.
Before we let you go will -- -- deliver us a year end rally -- yes sir now.
Quick answer is no.
Alright Peter so we wish him no -- year and ho ho ho but a lot of -- 2012 coming out of Peter concerns you know of Huntington asset advisors think you.
But it sounds like Santa will be around for 2012 according to -- on deck while looks like it -- look like those employees but then all of a sudden.
The government might be headed -- shutdown that.
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