You're watching...
The MDE Group CEO Mitchell Eichen on why the market’s strong start to the year is not likely to continue because of Europe and U.S. political factor...
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
On the -- market returns so far this year and it's been the best start for the S&P in more than twenty years.
Are they about to -- -- permanent -- least for the rest of the year and DE group founder and Chief Executive Officer official -- We tried to -- about the store because he's so negative about it but you seem to think so why so that's it for the rest of the year well I think.
-- -- at the end of the February markets are -- eight there's about 9% or so -- percent to pretty good run may.
Very -- media especially given the economic over and you know we could continue could hit eleven could -- twelve to speak but I don't think we're off to the races.
And -- a few reasons why you first of all we're coming off of very very terrible fourth quarter -- with the markets really influence I think what you saw was a lot of relief rally.
I think the more considerable Europe's not collapsing we're not -- to have a double dip so.
We can afford to take back some of the losses that we imposed on the market over the past year but the fundamental.
Over things that have plagued this economy -- -- the less obvious have not gone away was still running trillion and a half annual -- we can do that.
-- indefinitely.
Earnings have been little mixed and I think they've been mixed largely in the European story because a lot of companies had to have a lot of their earnings from Europe.
And I think have guided downward.
And there's always the risk of the unknown out there and there any number of things are gonna happen then later well we'll talk maybe about -- ran -- ran as an overhang that I think we cannot ignore.
Of course now.
And will get to that thought of what happens with the oil -- just a moment but if you were to look at your crystal ball if you -- put the swami hat on but they pitched in what do you see there you talk about Europe but they're still seems to be a belief.
That the European Union will do what ever it takes to make sure that Greece does not work well.
I think Greece may not implode but that clearly building -- bridge.
But the question is that a bridge to somewhere.
Or is -- -- bridge to nowhere mean Greece is just the tip of the iceberg it's a tiny tiny tiny speck.
Relative to the economic landscape excellent Portugal Spain Italy these things have -- be fade into the background they -- -- -- -- -- but look back here we don't have to at least thankfully at the moment a total full blown crisis but we do have.
Political drama that's going on to think that -- -- -- did not win an all out.
Yesterday on Super Tuesday and that Rick Santorum.
Certainly got some markets as well as such Newt Gingrich getting Georgia.
Politics you say will hold the market hostage.
Well because you have really the Mike the macro for the last several years has really been driving the micro we talked about this I think last time I was on.
It's not really -- picking individual stocks is about macro policy.
And the reality is that we're not gonna have any movement at all on metal policy in this election year -- -- polarized congress.
Congress is divided you have an executive branches of pre election.
You gonna have a political season heating up so nothing is gonna happen and until something happens we're not gonna get major policy.
That's been a major policy effect in the market gonna have to wait -- 2013.
Until.
The dust settles and then whatever passes really -- have an effect until 2014 so we got a political over a Wall Street so all of worry --
