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Former UBS Chairman Joe Grano on the uncertain outlook for the economy and its impact on the markets.
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All right -- to Joseph -- are now though despite the ugly down the street -- pleasantly surprised by what's happening with the economy -- religion of course the former.
Chairman of UBS one of the most respected figures on the street.
-- so what's going on I mean you you always need applause in the middle of run -- -- maybe that's what was going on in the market believe and what's going on the economy.
Well I think that.
The indicators have been more positive -- I would have expected but.
I'm a little bit concerned about a head -- be honest with you I think car sales are very robust but the average age of a -- -- United States is ten years old.
So do you -- got pent up demand.
The unemployment you know they've always hopeful -- have now what we're picking on sales.
Not as outside north attendance saying that you can't fix and the -- you -- -- -- united Iowa.
And you know the unemployment -- they're not telling you who's coming off the rolls.
I think the rates closer to ten or 11% in the eight.
Point five or whatever is today but you know -- the improving economy Joseph has been.
The president's clarion song that said -- -- -- it wasn't what it was.
But it's better than it was at its worst I agree with that -- we are seeing positive indicators but -- concern that Europe's going into recession there's no debate about that.
China's just lowered -- GDP growth projections.
What they -- -- -- that was the one that stood out -- need to China because they've been the world's banker well you know they go from eleven to eight to seven by now -- now -- should have those problems.
So I'd -- to lower they go the less inclined they are to keep buying our debt -- well.
Yes they're gonna move more to consumption based economy at least are gonna attempt to put -- he trying to get.
Their own consumers to buy their own products within the country rather than being a net exporter they want to change the the next of their economy.
And of course gas going up to five dollars is gonna hurt consumption in the United States so.
And consumption is the key in -- and our company and I don't.
A little bit worried that this may be head fake alright at a double dip tactic -- that we we go back in the something -- well I don't think we're gonna go back into recession but this speaking of the markets.
If you have to make one -- and when one that the markets at thirteen.
What's the risk reward that you're gonna see fifteen -- eleven I think that have to bet on the latter.
That's from impact so you would be holding cash tight tight and I think you -- -- on how to decline -- -- yourself and vocal and all of wants.
A focus on high yield dividend stocks a good dividend coverage.
And I and I think -- there's some good opportunities out there but you're better off being safe the sorry right now any prediction on the election.
Well I think I think from he's gonna.
When the primary I mean -- the general auction general election today I think I'd have to say Obama would probably -- but.
If Romney can entice a rubio or perhaps say Christine you have Richard Clarke will watch closely Joseph --
