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Wells Fargo Funds Management Chief Equity Strategist John Manley and Mainstay Capital Management President David Kudla on the outlook for stocks and g...
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Wells Fargo advantage funds chief equity strategist -- -- -- couple up mainstay capital management CEO.
John again we know that Europe is struggling and we know that these issues pop up -- the downgrades which affect this in the short term to affect the markets.
It could mean I think it's going to be a tough summer to get through but I think -- the thing to remember his first we'll -- the average stock in the -- and he's already 20% off -- -- that's that's a pretty big decline.
And I think Friday had a certain smell could have the smell of fear which.
Probably is more positive than not.
David let me talk a bit about the Fed one -- one interesting thing is that if folks think that the Fed and the ECB are likely to print more money.
Usually gold goes up a -- as a place to put your money if you think your dollars are heroes are going to be devalued that hasn't been happening why not.
What has -- happening eight except that if you look on Friday.
We had gold up nearly 4% -- I was I was different but not so it hasn't hasn't -- in fact today was down a little bit.
Yeah I an end and I think that's because investors feel that that.
While quantitative easing or quantitative easing more easing by the Fed by the ECB might be out there we have missing the signal that yet.
John you know to bring that point forward.
You talk about the fact that the Dow is down not even 10%.
In but it feels worse doesn't it so.
You feel a guy who's watched many of these moments and these gyrations especially when you did see gold -- dropping more than.
We're jumping rather more than sixty dollars on Friday and then today -- so much for that trade.
Should people be as nervous as they feel.
Was this Carter's and it'll clear but I have a couple -- We have you have to -- we've seen this this this stuff before.
I mean there are really dangerous things -- that it could happen but the fact that the markets made up.
Big deal about in the last month I think cross into policy makers' attention so there is a certain it's salvation in in the negative numbers over a short period of time.
David like there are deals to be made even when the market is down -- when the market's answer it despite the fact you think the market's gonna go down maybe another 10%.
You still see bargains out there.
GM GM was hit hard today -- -- was down about -- percent but the old adage buy low is their value -- a stock like GM in this market.
Yeah I think so you -- we GM came into this year coming off you know some really poor performance last year.
The share price but.
We've had improving sales this year the replacement cycle the US we had the Buffett bounce with Berkshire Hathaway coming and couple weeks ago with the announcement that they had about ten million shares of GM in the first quarter now on Friday we have the long term pension obligations that are going to be shed.
So that that will be helping the balance sheet in terms of the long long term liabilities and the volatility in the balance -- so you know we see some good things despite today's performance.
GM has done really well this year and we expect.
Good future outflows from General Motors stock --
