Also in this playlist...
This transcript is automatically generated
So one of the world's richest men comparing the current crisis in Europe with the fall of the Soviet Union.
Billionaire investor George Soros saying that the Europe crisis has the potential of destroying and undermining the European Union.
Source also says the crisis is not over yet.
And is going in the wrong direction source was speaking in his home country of Hungary we made these common.
It's about -- -- -- lemon global solutions that managing director Morgan Stanley Smith Barney he joins us now from Chicago would you compare Europe to the Soviet Union there and -- thank.
I wouldn't go that far no.
Would look look look look I think what's happening is that -- you know last fall.
You had a situation where.
You know Europe was going to and the stocks were down a lot and then the ECB changes its view.
And goes from being restricted to being much more accommodative and it it eases detention.
The market's rally significantly.
In Europe in the fourth core in the first quarter of the Vicks in Europe comes down quite a bit.
And now you're at a point where the you know the there's a belief that always fixed -- the reality is not all effect factually just came back from a week.
In Europe are last week and you have you know up the Holland government has collapsed you've got first round of voting -- -- that's.
Moved away from -- so there's new anxieties.
Are and I think that's the white from from equity investments they have court but.
The budget but the other the problems are fixed but I I wouldn't go that as -- -- say if it's good mix overeating right because the question is will it survive and and that has been a legitimate question for some time now well the European Union come through this.
And Al what's the end game look like -- -- just that they shed a few nations -- -- the whole thing blow up war of you know they come third attack I think it's very very slow growth for an extended period of time they've they've got give it their deficits they're going to have to.
They're gonna have to pay down their -- that they're gonna have to cut.
And the result is does that matter whether they're you know in a recession now that ends in a year or yens and six month -- in two years -- the reality is.
We're looking for a very very slow growth.
In Europe so I I just don't think that that is.
A great area of focus from equity investments -- -- are good enough and then tell us what that means for -- markets now we're up on the Dow by fifty points to tell us.
Ten we get through this if Europe's in that kind of an environment so what should we do hear how much risk should we be taking -- American investors.
Well look I mean that what I find so incredible is look at their earnings season so far.
About half companies half the companies in the S&P reported.
80% have beaten it on their earnings line and about 70% of -- net sales.
So we're we're we're seeing a stellar quarter in -- across a lot of different industry that is in the of factors -- So to me.
What's going you're gonna see earnings.
You know earnings estimates go up and this is something in -- -- I think you know we've been in Europe talked about this in the past but.
Look we had 15%.
Earnings growth of -- -- And the market didn't go anywhere it was flat so so what's going on is this stocks and playing catch up their earnings growth.
And -- here right now we're looking another 89% earnings growth this year noninterest -- areas Morgan Stanley Smith Barney.
With us today and thank you very much from Chicago appreciate it.
-- who would take care.
Filter by section