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Holland Balanced Fund President Mike Holland on the outlook for the markets and economy.
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The markets on this economy might hold on one he's the president and founder of Holland balanced fund great to have you here and what an impressive string for the -- -- It shows Lou what what can happen when you get stocks slow and you -- I've talked previously hear about valuations these down even now at levels.
That are so low that when US corporations can continue -- you've reported an -- -- to eke out good gains in in a tough world.
Valuations stay low from this recent quarter which we should just finished.
The companies who reported three quarters of them beat expectations this is in a very challenging world you talked about Spain but there.
When to a second recession in -- second recession.
In -- recent interest in.
And I can actually kind of a business for us because today -- Profits rise but spending didn't arise -- right missed it by a tenth of a point matching that their income.
Like consumers are supposed to be some kind of idiots -- not hold some money back that's pretty strong -- nonetheless says absolutely in that's.
Businesses and consumers they're the same people who people are watching right now they know all the bad stuff out there there's there.
And certainly is a word that is being thrown run all the time but when you and I in the viewers are in certain.
We tend to be cautious and that's when investors and done that -- businesses of and that's why the cash -- are so huge.
Cash forwards and also money flows.
Still into the bond market -- -- the equities market -- re going to see that change and if so substantial.
I would predict.
Which I never do but -- -- just between the two -- don't tell anyone else prompted bonds will be a very unhappy place to be over the next several years.
Because we will get a little bit of inflation.
There's just too much money coming from all the central banks these cause inflation.
In our market are just our own parochial -- -- here in the US we have the Federal Reserve.
Manipulating interest rates that's what they told us they would do so that people would buy stocks and invest in businesses they've been able to get.
Interest rates down but in had a great success getting people did it hard with our cash that interest rates because given the valuations -- -- -- Their performance earnings.
By the the S&P.
Our companies this looks like -- it would attract some money.
Korea now these things take a long time yeah you weren't around but I was around in the 1970s.
I can tell you that this it took years to grow it could take years because we were sorry I missed it if you're here in grade school in the psychology was so bad.
Did you had interest rates that you're just crazy stuff going on no point going into the details you have crazy stuff going on today.
Apple and Google are trading at one of the lowest valuations -- premier companies in our -- ten and 1110 to these are crazy numbers there have been times when these kind of come -- treated.
Five and six and seven times that level.
There -- your outlook for the remainder of the year and and frankly rather not investor should start.
Poking around here perhaps putting some money to work on and the stock.
Last question first and issues yes if you have -- hundred dollars in -- money market fund -- been out of stocks since 20078.
Output a couple of dollars -- it goes down by the same by a little bit more so investing -- absolutely get it because I think that it's possible.
There's a risk to the downside which -- always -- but there's a risk to the upside.
You pointed out even in this tough time we've had stocks the last several months going up that may sound crazy to a lot of people but companies have been doing very well.
So I would say absolutely get gets money invested in in in -- -- I think by the end of the year -- listen to John Sununu.
Then and you talking before the by the end of the year a lot of this uncertainty is going to be a little bit better in terms of people feeling a little bit better about things.
And my guess is that stocks -- gonna be passed on them like highly -- Political forecast what's -- -- economic.
And Electoral College like got new -- that's what.
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