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Figure -- I -- housing -- jumping more than expected in April and so is this a sign the residential real estate market is finally stabilizing.
Well our next guest thinks so -- let's hope she's right joining us now -- Margie Patel managing director and senior portfolio manager with wells capital management.
-- thank you so much for joining us -- We would like to say that obviously the housing market is showing signs of life we had to guess just yesterday told about this massive.
Shadow about foreclosures still out there that need to get through the system what's your take on it.
Well it sounds like everything else and housing and they shadow inventory is being -- down month spot on.
And what's more important -- people continue to get jobs -- population continues to grow so there's pent up housing demand.
So once we see stabilization in prices which we are doing in many years in the country I think you'll see.
New housing units continued to rise.
And really be one of the surprises over the the rest of the year and how long though before house prices come back so many people still under water and unable to move.
Yes well I think you are -- starting to see stabilization.
In selected areas.
In those areas that have the greatest overbuilding you still have pricing pressure but even they are the price declines on a month by month -- -- every year hard to.
Finishing and were gradually approaching zero the next step will be housing prices Begin to move up.
Even in those very troubled -- -- probably takes another year -- in other areas of the country you've already started to see some housing prices go up.
Right let's talk about the -- of market as a whole and -- you know obviously the first quarter earnings so far I think you could say been pretty good companies have done well over the last six months to shore up.
Do you believe that due for a correction.
Yes I think so -- you can't ignore the macro trends what's happening in Europe.
And although most companies don't have a lot of sales that come out of the troubled countries Greece Portugal.
I think that we could see some slowdown in the European economy in the north part which could impact.
The profits in the second quarter here as well is just uncertainty we don't know how this is going to unfold things seem to be unfolding rapidly so.
I think we -- see the market -- -- correct.
-- we have some clarity may be and by the fourth quarter.
Well that's a good points and and what -- Greece falls out of the Euro and -- contagion this domino effect.
Indeed plays out what impact will that have on the markets here.
I think it's going to be pretty much confined to those countries -- have a specific problems and because things are beginning to look.
Everybody understands Greece.
And if you look at the performance of the banks stocks whether -- European or US.
They're really holding up pretty well this year to date enough for me is a big signal about stress.
In the financial system as a whole so that says to me things look okay people understands.
I agree -- as a Greek problem it doesn't have to impact the whole rest of the world.
All right -- -- -- as a presidential election yeah problem do you expect the markets to be pretty much you know wait and see mode until we know who wins.
Yes I think so I think they're too many things up in the air fiscal policy for the deficit.
And of course tax policy is extremely important what happens to the 15% tax on dividends doesn't -- about to.
As we get in 2013.
Fourteen so I think we can expect to see the market shop around.
Until we at least get to the lame duck session and that I think we'll see a pretty good finish to the -- Our hope you're right Margaret Patel thank you so much for joining us the -- and really appreciate -- thank you.
It's not this kind of stuff I hope so hope to get some clarity of the lame duck session actually does something -- -- markets and everybody can move forward that went once they know exactly -- have.