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Rob Morgan of Fulcrum Securities and Todd Schoenberger of the Blackbay Group react to the unemployment numbers in May.
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And it's from erupt from -- -- let's get fall first our ball in our bear arguments for these markets because there's two sides of the coin and Dave I'm Margaret.
-- welcome securities' chief investment strategist -- John Berger.
As managing principal with the black -- group timing you said that these numbers this morning the -- there was absolutely dismal used to the market is going down fast.
Terrific I mean you'd look at it you can look at a couple of things -- the jobs number would discipline that at the headline number's disappointing.
Look at the average hourly earnings rate -- you're looking at a 110 of 1% increase.
One point 7% year over year even if you're lucky enough to have a job right now Cheryl your not making any money when you adjusted for inflation your spending powers he -- we get.
How are you gonna substantiate any type of growth in the US economy right now going forward -- as ever -- markets are just headed south.
But here's -- thing -- that many of the market -- strategists are gonna look for the for dips to do some buying we could see a market turnaround of the next four hours nothing is for sure.
Well absolutely and I guess I guess the way I'd look at the jobs number -- -- this Todd said it is dismal but a lot of it is just hiring that was done in the warm winter.
That we saw this in 99 -- -- recover.
Recovery we saw this in 2000 -- invented the term jobless recovery then.
-- what's encouraging I think is that if you look at weekly initial jobless claims for the last three years to come down dramatically with housing being dragged now there's signs that housing is gonna be additive.
Jobs came in 1990 they came into -- and they're gonna come here I I agree with what you just said I think the stock has had their worst month in two years.
That the -- -- month of may was worth and selling at thirteen times earnings it's it's just I guess I'm on the other side with our that has seen an.
Here's a name look at -- the kids -- right now you we broke through attack today that the 200 moving day average for the -- -- -- -- -- -- we've broken through some some big levels here -- and timing that.
You know he'll -- selling begets selling and you could have that not just today but that could be throughout the something it's not just this.
-- -- it's for the rest of the year look we were counting on quantitative easing we -- a further accommodation we're not gonna have that right now.
I'm talking to clients all -- long they're wondering where to put their money right now and don't know where to go up you can go to the ten year treasury -- -- -- was talking about an -- one point 4% in having making any money there.
Gold is doing great today because that's gonna be that safe haven play but realistically cash is king right now guys this market's going south I.
I love -- optimism.
-- -- -- -- -- -- -- I guess that if they don't anywhere the rock of love and you know look again I go back and know -- -- I know what your strategy is you're gonna look at specific sectors today.
And -- -- make -- moves within an.
Well and and would.
The place where I agree with third -- I don't agree with Todd I'm going to cash -- I'm closest to an agreement it's gonna be a choppy market no doubt and so I would say the large cap dividend paying growth stocks that they -- they have they have some yield.
So we as we go through this chopping this year -- -- getting that the and it's a lot more than the ten year treasury.
And they can reach into you know emerging markets and an area pockets of real.
Is about to pull yeah yeah.
It is my bills -- skydiving without apparent.
You guys I'm telling yet.
Earnings are gonna be there but the last quarterly earnings period 3% during earnings growth quarter recorder a year ago where a 12%.
Where the earnings coming going to come from and here's this guy's.
Ben Bernanke can't do anything right now as bad as this report as it's still not bad and hot money kicking when he got your west China you what do you get to looking at CUNY then markets are going higher I'm afraid I'm not a politician I want QE3 four and -- that be great for the stock market -- five -- why not let me just bring it on because it's going to be great for the markets can be harmful for the US economy down the road by.
Traders want to make money.
Rob what if that happens what -- an annex in some market analysis this morning from other I do talk to other analysts besides -- tuition horn out I'm shocked and I don't know what amended ominous warning that they think -- the rhetoric from the Fed's gonna change.
Why I think in the last not fed minutes that we saw some of that -- where they they started to talk about in the in the minutes said more more of the -- voters.
-- on the Fed.
We're we're giving QE3 a possibility OK -- gets it is it is certainly.
Bill if that happens -- -- gonna miss the rally and they got it completely safe positions right now.
This enemy the first quarter -- this year the markets -- with that hope it wasn't on earnings everybody -- to say it was on earnings.
Now yeah we need that however remember chairman Bernanke -- specifically set.
He would never overlap monetary policy news is gonna wait for Operation Twist and at the end of June which it well -- -- consider doing something here's the thing guys and this is about politics.
You have an independent Central Bank right now if they do anything right now it's going to be shown that the White House is actually leaning on Bernanke to do something.
Now this is an administration it will do that -- Supreme Court a decision and we get that's a whole another topic.
But going forward are you going to allow that to happen because of Bernanke does this there's got to be -- such a poison out there in this economy that it can't be cured without hot.
There's -- -- -- is an and then buying opportunity is rob Morgan gentlemen thanks Britannia.
