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Ariel Investments vice chairman Charles Bobrinskoy weighs in on financial earnings and his outlook for the economy and stock market.
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White House and just a few minutes we'll get to that.
But we also have a market rally and tons it is in the financial markets Goldman Sachs made big news this morning.
With its -- to -- expectations and while some of the earnings estimates there.
Or maybe too well our first guest this morning says it's still quite bullish on financial stocks sold.
Let's start things off -- -- -- -- -- -- vice chairman Ariel investments.
Director of research and -- focus funds of Charles thank you for waiting there for a few minutes says the -- that its way to DC and thanks for joining us today.
The -- around you bet on a few times here this year talking about how you're bullish on the financial snow we've heard.
Some of these firms their earnings reports -- Goldman Sachs this morning when he thank.
I think they've been coming in as we expected stronger than expected.
Everybody's been worried about new regulation the Volcker Rule -- -- -- And we've felt for the stocks -- just to -- you had names like Goldman Sachs and Morgan Stanley.
Trading in big discounts to their book value.
And -- business -- while there are some challenges is still fundamentally good companies the stocks were too cheap and we thought there was a real opportunity.
Goldman Sachs up a little bit on the back of today's said results the stock price that is how do you compare.
The the big financial firms to each other because.
Although the the bottom -- think it's a Goldman Sachs are better than expected.
And a fixed income division.
Revenue is down 20%.
-- JPMorgan it's got just 11% at Citigroup down only 4% compared this time last year.
Yeah -- fixed income.
Rating was a hair disappointing.
But they actually made up for it in equity trading they did very well on equities.
-- investment banking business was pretty good their asset management business has been growing so.
But trading bonds is a volatile business from quarter to quarter some people are going to be stronger than others but the fundamentals of the securities business are still fundamentally better than people thought.
Are better than people thought in an economy that may be is better than some people think many IMF came out this morning raised its global growth forecast you all.
-- -- -- bullish about the economy as well adjusted separate this from a financial discussion for second.
We would say it's getting better I don't have a contrarian view on this actually we would say it's getting better slowly this is gonna slow recovery.
One of the slowest recoveries since the Great Depression.
But business is doing a little bit battered revenues that came out today from the advertising agencies were up about 5%.
Retail sales have been -- Most businesses auto sales are up.
Housing is a little disappointing and that is something that could -- -- the whole economy.
But generally we would say getting better but slowly all right and just ended on this the stock market will show the -- here for a -- -- a 460 plus points just in today's.
Trading a lot of lots and they'd save apple in the pull back and -- one individual stock and how that affects and the NASDAQ and the SK.
Showing the Dow right now but that the overall market then.
Your fairly optimistic about.
GAAP particularly relative to bonds stocks are extremely.
Cheap relative to bonds.
Maybe -- cheapest they've been in fifty some people would say 75 years and that maybe because bonds are really overpriced.
But if you have to make a decision today about putting your money into bonds or stocks stocks are -- much better place to put your money.
Not Charles good to see Charles severance coli from Chicago thanks -- --
