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Sri-Kumar on Global Markets

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  • Description

    Komal Sri-Kumar, TCW chief global strategist, weighs in on the state of the markets.

  • Duration 4:15
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Our local interest rates on in this it lets the US treasuries the ten year yielding two point 01% to two basis points thanks to rising building permits which.

-- -- hope to the future of housing although lackluster.

We also have the rally on Wall Street putting people back into risk.

Doubt right now 199 points but investors -- keeping a very close -- and Europe.

Despite enthusiasm for Spain short term debt today investors demanding nearly twice the return that they did just a month ago.

And this comes just one day after Spain's long term debt -- an all time high topping 6%.

Number US ten year 2%.

All this reigniting concerns of the European sovereign debt crisis so did financial markets overreact to Spain's economic woes let's bring in -- march.

-- he's global strategist at CW -- in street.

Good to be back on your program noted -- so there was so much concern and anxiety leading up to the auctions in Spain side yields rise a symbol of significant.

Concern that the can continue to be kicked down the road mean in terms of Europe.

Up US markets are just stock market is just rallying today a lot of people showed up good turnout for the Spanish.

Bond auctions today -- volatile do you think the markets over -- or didn't have faith.

I think the market is reacting to devil opens which -- live video of an incentive -- in terms of the positive news on -- status.

And today the IMF forecasting that the global growth is going to be cost.

But if you look back manufacturing activity even in the United States was put -- -- -- from the empire state meeting yesterday.

Industrial pro opera direction in the month of march it's not hasn't changed so when the consumer must have been a bit -- exuberant.

Production side if it even in the United States does not back to -- that.

I think it's coming from the fact that the read that has been extraordinary -- -- hot -- of most of the United States has consigned.

Give rise to good I'm ought to have that he can say is being -- bonds into the -- squad to watch may have happened in the second quarter.

Going on I think that is also a less of an understanding -- developments in Europe even -- you said.

That -- shocked on Paper in Spain has been placed the big challenge is -- to come into -- has -- one is.

That they have opt to have been through the Spanish government has threatened -- -- when local finance us.

Which is good if there's a lot of opposition from the regional governments.

The second is let it tomorrow be employed to face the issue with -- longer term debt that they have to place.

And it's not clear whether that's good to be fully placed our real thought I'd want you.

Looking out a bit further -- next Sunday we have French elections.

Read all position socialist candidate looks likely to -- And a second round of the French elections would be -- six -- -- we may very well have a -- -- -- Not to leave the French elections but also a Greek election and with the opposition -- -- we did not subscribe to the debt agreements actually -- So I think the clicked on -- deal would be out of its long -- responsibility.

Is that the market essentially hasn't taken all of -- into account.

Well that's just get right street this is a global market you mentioned the US spending trends you mentioned this Spanish bond options you mentioned the French elections.

You can't just look at one -- you really have to look at the entire high and that's not easy so -- investing advice right now.

In this.

And advice is that I lots of things that you can do -- first is that I have read job I've been talking on the US equities side to be defensive.

Health -- you to BP's dividend yielding stocks I think I'm going to continue to do -- -- If you all going to pick a bit more risk I think have you can clearly do so in terms of looking at -- and distress.

-- I think Europe is going to Woodson that and lots of opportunities have turned up and I've been talking to investors in the last couple of months.

Aboard increasingly looking at Europe opportunities.

I agree I hate on stretching but we're literally gonna get cut off her eight -- computers -- takeovers Sharry thank you so much for your time let's tap water out of the show.

And we'll let have you back on very soon -- --

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