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-- of Chicago in the meantime while the markets didn't necessarily react positively.
To today's economic data that came out we've got a top economist -- says not -- -- the market interpreting the data incorrectly.
But there are no fundamental problems -- with the economy.
Brian -- -- chief economist at first -- trust advisors.
Brian I know you and I in -- have have duked it out a little bit on a question of how strong an economy is.
But you were my guess and I just wanna focus on exactly how we can trade off of your views right now you think.
That the second quarter the one that we're in right now is gonna slow down a little but we're gonna come back like gangbusters in the second half of the year right.
Sure what you know David this all goes back all the way to the early part of 2009.
When the vast majority of people thought that the economy could not recover we were gonna have.
Double -- every step of the way and I've been bullish we first trust has been bullish on the economy since that point the markets up 415%.
And by the way it's still undervalued now I'm not saying that the market will go up every single day.
Or even every single week or even every single month.
But what I believe is that the markets undervalued.
And that the economy will continue to grow and their profits will continue hero but I just there for I want to be long the equity.
Got gotcha but I just want to emphasize in the short term though you that you think perhaps since there is going to be a slowdown as second quarter.
Maybe we hold on for a while and save some of the -- for the second half of the year would that be are correct interpretation.
He you know I I I personally am not doing that I think the market so undervalued.
That if any any news they would be better than expectations which by the way is really easy to do these days.
People are so negative on the economy still and they're under pricing equities.
So I I keep thinking that even if the economy slows to say to two and a half percent growth here in the first.
Half of 2012.
That that we're still going to have relatively good employment news that the housing market is going to be getting better.
That it earnings and incomes are going to continue to go up so I I'm not.
I don't look for any real negative shock to the system I'm gonna stay long I don't I.
-- how to trade the market I can't I I've tried over the years I know other people have tried I don't know anybody that can trade it.
Perfectly from day today so you're saying stay long.
You know the old joke is that you get ten economists in a room and you get sixteen opinions or something like -- at some version that battling.
Well in the last I mean Amazon a one arm account I'm just gonna get into had a -- -- -- it.
Listen so we -- David Rosenberg in the last -- economic plus good shepherd and -- heat is very concerned that because we had no snow on the East Coast and a relatively mild winter.
Over the ever since that October really after that one snowstorm great that people spent too much in the last couple of months and that they will have to pull back because of higher gasoline prices in the last topic that could cause some problems.
Do you foresee that.
Yeah I don't I mean this is a very good question there's no doubt that abnormally warm weather -- abnormally good in the winter.
And I can can skew the data -- a little bit but.
We would did today in the fourth quarter we got gross GDI we we measure the income side on GDP.
And the product side and GD gross domestic income is actually doing a lot better than GDP so I would argue that -- there's not evidence of that yet.
The second thing I wanna say is that natural gas prices have plummeted and it looks to me is if consumers and businesses.
Could save fifty to sixty billion dollars this year -- from low natural gas prices that's been offset the higher cost of gasoline and and fuel oil.
So it yeah it did there's some good news on the energy front two so I'm not as negative as.
Rosenberg and I I know he's been negative for awhile and I don't wanna beat him up for that but.
But the bottom line is is that I'm not that negative I think the economy's going to continue to grow.
-- Brian we got to wrap it up but I I have to ask about the election what happens if the election -- changes configuration of the government to one that.
You and I might think is more pro growth.
Yeah I think that's a real positive thing David I think there's three things driving the market right now one.
We of this underlying movement technology everything from fracking to the cloud.
Number two the Fed's easy that's a double edged sword right because it causes inflation.
But number three that with the Supreme Court in the last couple of days and the election polls were seeing.
I think there's a really good chance that the pendulum is swinging -- more of a free market direction.
When you put all of that together that's why wanna be long bets Brian Wesbury chief economist at first trust advisors with one opinion thanks for legacy of right.
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