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Raymond James Equity Trading Director Dan McMahon on how the political landscape in Europe and the U.S. is impacting the markets.
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Kicked -- -- this morning -- French president Nicholas Sarkozy he is out.
Socialist press while whole lot he is and that my next guest says our markets are being held hostage by the political landscape that's happening both here.
And overseas -- -- -- director of equity trading at Raymond James is here for the last hour.
Zero watching the side show over the weekend yesterday especially in France and you thought to yourself what.
Well in between watching the NHL and NBA and everything else -- surprised but -- Yeah it it really is simply a matter of we've seen the market bubble up over the past couple quarters a couple months anyway.
A lot of positive data leading to that a lot of people putting risk trades back on but what was notable was the absence of headlines coming out of Europe and it's not like any of the problems -- gone away.
It's just they weren't being talked about -- now all of a sudden it's back front and senator.
And you have concerns about what's gonna happen to the Euro how strong as the EU you've got Greece you've got France.
It looks like they're going to you know -- on the a previously mostly agreed upon austerity measures so what does what does that do.
That can really throw a huge wrench into a lot of things we we basically have been traded along you -- here -- market analysis you come in and say the one unknown is Europe it seems like Europe has now unknown again because of what we see could be -- the -- -- we had very -- unknown net and now it's is that arguably slightly more known and not exactly known on the positive side so.
Could there could be a whole lot of sliding back just.
We need to be rents only to now retire at sixty incidents 62 because lord -- you know god forbid -- work another sixtieth that was focused on the united state that you wanna get.
You also you know cut talk about the political landscape in this country -- -- that concerns you.
It's a special clip to women discussing the last few weeks had something else that you're worried about regards to watch it.
You know it's just an election -- so that's always a wild card you never know what's gonna come -- -- -- you know you can certainly one thing you can bank on and that's negative campaigning -- and now that you know the US economy had been kind of bubbling along.
You know we really strong enough credit markets clearly are strong enough for equity market so arguably priced for perfection which is afraid you're hearing a lot now you know given where we were up until a couple days ago and pull back.
But but Washington DC is actually the wild -- election year anything can happen.
OK let's talk about the Fed because Bernanke and company mean we you know we've gotten.
We know what they're gonna Begin with interest rates we think until 2014.
Kind of -- -- -- -- gonna change their minds but at the same time they've got to watch inflation they've got to watch.
And employment picture does the -- have anything left that it can do when your mind to kind of give us a little bit of a boost for the constant economy.
Well I you know I think that -- -- in regard to the Fed.
They've they've always said that we are standing by ready to -- engage if need be so you know the language hasn't changed they expect to keep rates thus effectively unchanged for the foreseeable future that you know barring anything material is changing in the economy.
That's that stance isn't going to change and they still stand by the ready that's that's different now what are they gonna do does that mean.
You know if -- liquidity measures and some would argue whether or not that's going to be effective all but.
You know that -- he always goes back to the old mantra don't like the Fed and as long as they're standing you know armed and ready.
You -- you don't want to necessarily go kind of.
Okay -- read today in the odds of a double dip recession get 30%.
I mean we're still talking about the potential of a recession in the -- have.
Having been talking about it for a long while and now all -- about.
We're off of that and we weren't you never you stopped hearing all about it and now you know boom 121 you know we could bid data and all of a sudden it's back in the -- It just -- -- think you know it's -- time.
-- all right -- great -- we'll see you just look.
