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Springer Financial President Keith Springer argues the Fed will have no choice but to impose QE3 around the presidential election.
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Alan thank you try let's get to the market to mention that -- rob.
Down today as the debate for more fed stimulus continues our guest says.
That the Fed cannot wait much longer to do what Keith springer president of springer financial.
Advisors and look out all facing I have -- -- -- in the dangerous market adds up object to CUR Keith and thank you for coming out.
This idea about -- the Federal Reserve you know.
Giving the economy some more juice.
You'd think you'd think they will need to act I guess today's market sell by the way mostly China related -- -- 8% growth that's not.
What people expected people expect -- but more than that still.
Well you need the market is pretty much addicted to the stimulus and you can pretty much see it every time we get better than economic numbers.
The market goes down -- we get disappointing numbers.
The market goes up yesterday the jobless numbers were disappointing market had a strong rally.
The Fed is really looking for low inflation I think they've laid the blueprint they're looking for.
Negative -- -- around 2% inflation they wanna see unemployment not really picked up or you know employment numbers continue to be weak.
And you know I think we have an election year you were to -- that you know so it.
There QE3 would be more quantitative easing more bond buying more kind of stimulus added to the economy and the reason there's -- three out of this because we've done two other times so if the assumption is being made by people like you that we're going to do -- a third and then.
We or -- -- in the Federal Reserve don't then what.
Well you -- to be out of stocks at that point I think the stock market is pretty much addicted.
To the stimulus it's really being driven by stimulus.
-- got to remember the QE programs take six to nine months to feel the effect.
And -- you feel them for six to nine months but each time -- -- let's say it diminishes a little bit price so they did the last 1 November.
You we felt that around September it's gonna start to Wear off this summer.
You heard -- -- about a month or two ago say look we've got to be prepared for because he knows it's wearing off.
But he wants to see inflation pullback you want to see a little bit weaker job but picture so he had the ammunition to do it.
But I think it's a given I think they're gonna do it I think it might be timing -- for the election the stock market wants it.
You know investors have to be careful look for income dividends and things like that not take too much risk.
But you don't gotta remember to O'Connell this is the fourth the ever presidential cycle them right at its most likely gonna peak sometime this year how much and then you know investors really have.
I was just gonna say how much we are outside factors played a role in that because we were just talking about Monica and as you mentioned it's an election year so yet we know our.
Economy is being may be over scrutinized and looked at very carefully and how it effects election but then today the market's down because the Chinese aren't growing as much.
As we thought they were or you don't next week it might be another blow up in Europe or something like that -- the Federal Reserve base those decisions -- -- what happens outside the US or -- or things that are happening here inside domestically.
Whether he's got domestic pressure remember he's got political pressure and -- public sentiment pressure.
It have to be domestic and have to be domestic driven but he doesn't wanna see Europe fall down either -- remember where a big part of the IMF.
Every time the IMF gives Europe money it's part of our money price going to be someone affected Europe a slowing down because you know there in a recession China slowing down because -- exports to Europe.
And but mostly it's going to be here in this country the Fed is going to be looking at slower growth.
Lower inflation because they know -- -- -- do what you week.
It raises inflation every time we get QE1 and QE2 inflation went through the roof and they know what's gonna happen -- -- they've got to be careful.
That's why investors just have to be a little bit careful here but prepare for -- -- probably sometime this year.
All right keep -- book it's called facing Goliath had a triumph in the dangerous job market ahead thank you for coming on appreciate.
Banks.
