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Springer Financial Advisors president Keith Springer explains how a third round of quantitative easing will impact the markets.
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Absolutely now to our next guest to see some warning signs of a market top but must Ben Bernanke can save the day he springer president.
He joins us now to talk a little bit more about the market which is down today and has been selling off so the point is.
You think it could continue to go down and lasts the other helicopter flies and India propellers are going crazy in the money starts flowing again and that.
-- -- -- -- Well that's what's gonna have to happen Connelly had a right on the head it.
The market -- sitting on a sea of liquidity every time we don't get a QE the market tends to drop we sell off.
Dollar rises a little bit.
Bernanke comes in saves the day and that's what we are again the market is look at we're looking a little old and tired here we've got we're in the fortieth month of this -- market.
Bull market -- for the last 39 months when the fourth the ever presidential cycle you know that's usually the peak in the market start going down the first share.
You know we -- that the president isn't gonna have a whole lot about political will to stimulate and bar to stimulate after the election so I think we could be -- a top.
Although a QE3 is gonna save the day for sure.
All right what's it gonna look like and what should we buy -- obvious things that this would boost the stock market if you're right but what does the timing in all this -- commodities would go -- I'm sure.
Will lend -- is it just the bond buying program like -- -- -- is some sort of you know under the radar.
Type of the stimulus from the Federal Reserve what will Bernanke and company do you which we look for.
Well most likely it's going to be another bond buying activity and are gonna say you're not gonna know exactly never calls it QE -- -- You know it's always by a different name but most likely it's going to be an injection of liquidity in some way the market loves it the it market speculates whether it.
You're gonna see it probably -- -- the election maybe you know get a little push.
Some sort of bond buying activity -- you know we're having a little drop down now after earnings season a probably pop up a little bit of their clothes and earnings.
With just gotta keep in mind that the market's looking a little tired.
Investors should focus on our income dividends I mean that's what we -- otherwise -- How does the Fed rationalize -- cell disease don't know maybe just says.
You know there's been a lot of criticism in the Fed has already done enough of this and job all the bullets and it's gone and all I -- thing.
Well -- what we're saying as a slowdown in this economy Connell the same time we're seeing the QE starting to Wear off QE2 is now starting to Wear off.
QE programs take six to nine months to feel the effect -- my last for six to nine months so some time around now the next couple of months.
You're -- our economy start to slow -- Bernanke gave us a warning a couple of months ago he said that if I see a slowdown in us economy.
And I see inflation get back to around 2% and that's inflation.
For people who don't drive and -- which is kind of strange for all of us but that's what he's looking for so we can -- a little bit more liquidity into this you know it's almost like a Bernanke put.
He keeps wanted to put a floor under the market he thinks it by putting more money into this economy.
It's gonna keep it afloat so you know essentially we're just have a slowing economy we have large demographic problem -- that aging baby boomers are past their peak spending years.
Massive debt problem I mean just look at the housing market you have.
You know the ten year below one point eight now and you're gonna have mortgage rates -- even lower it's crazy that's not spurring have really.
Any growth and housing.
So what we're saying Connell is just.
A slow down from the economy overall.
And -- is probably gonna have to continue.
Injecting money until the interest rates go up to the point where he can't talk thanks -- we appreciate it Keith -- from -- for your financial with a set today as we get your quarter back on until the hour every fifteen minutes we do cheque on the.
