You're watching...
Ron Sloan, Invesco U.S. Core Equity Investment Management Unit CIO, on the geopolitical factors moving the U.S. markets, plus why he is predicting vol...
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
For -- -- we have the full yes all right well our first guest says almost solid growth for the US economy and stocks this year will take place at the end of 2012.
And meantime he says expect more market volatility good news rank joining us now -- and chief investment officer of invest goes US core investment management unit.
-- I I presume the assumption then is the elections are over we have some -- notion of what's happening in -- -- Wait till the fall before.
Well you know I use the term hockey stick to describe the economic.
Situation environment this year this of the term -- was popularized.
You know a decade dozen years or so ago in the late nineties and early part of this decade.
And it was associated with technology companies that that.
Had about 70% of their orders and sales literally in the last couple of weeks of their quarter.
And -- we look at what the consensus estimates are for earnings this year.
We see kind of middling.
Growth -- flat -- growth through through the first three quarters of this year -- -- never was got this big 20% number.
For the fourth quarter so it reminds me of that kind of hockey stick mentality that we -- A decade or so ago and and in that environment.
We're in there's.
You know no growth now so to speak that it everyone is susceptible to rumors and whispers and so.
You get a lot of volatility and I think that's I think that's what -- -- for for a while.
And -- perhaps you know there's a couple of elements here that really hurt the US economy we have the strengthening of the dollar which of course makes our exports more expensive for the same time we have this slowdown in China.
-- kind of like a double whammy -- it to the US economy.
Well well it is tonight because you know the deep part of the economy this led this recovery for the last three years.
Has been manufacturing.
And specifically.
Export driven manufacturing.
And so with a stronger dollar in a weaker China.
You're you're you're going right into the headwinds now.
What was tail wins until more recently.
-- -- Isn't pets -- -- Ron it's a tough sell these days that you know we hear about all this volatility -- really as a definitive answer as to where to put money these days.
And on top of that you know a lot of times especially -- mutual funds they're not beating the market many funds have high upfront loads including some invesco funds.
How do you think this out of people these days to put them -- put their money in with your mutual funds.
Long term.
You know everyone's it in this data of of angst about.
What do I do have not getting any return on my cash.
Everyone says suggesting that maybe -- the the treasury market is a bubble.
-- -- go what do why do you see in an uptick in the higher you'll high you'll part of the market.
So that's perhaps sensing some.
Some.
Negative news down the road -- you're exactly right what do we do what do we do.
And I think in the short run.
There aren't really good answers I think you have to be patient protect your money.
Be defensive but you've got to think long term -- So it's tough New -- that tell you it's really scary situation when you're no good there's no good short term solution -- today yeah.
That's -- and when you got a mutual fund with a five point five load front up top that's a tough sell for people Ron -- of invesco thank you very much.
