You're watching...
Wells Fargo Advantage Fund senior portfolio manager Margie Patel weighs in on the economy and markets.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Is off about 7%.
Here since the four year high hit back in April.
How much of the market weakness reflects our own sluggish economy and lack of growth as opposed to those problems -- -- up.
Joining us now on the way it is Margie Patel managing director and senior portfolio manager with wells capital management -- welcome to you.
Good to be here so let me get your -- -- we've got to have rally underway here today up -- the show we we're saying here so once again it's a headline driven influence what do you think.
I think it's a short term trading we had a huge -- decline yesterday so I think it's natural to get a little bounce back.
But really when you look at the a gross here in the US -- looks as if we're just in a trough growth looks very very slow.
And we have the uncertainty of what's going on in Europe.
Not so much of that directly impacts us.
However.
There's still the risk for the financial meltdown that could cascade of -- and and her -- their trading partners have heard us.
And I think we can't really expect much more than just waffling around industry average -- we're not paying enough attention to the positive fundamentals of the stock market -- -- too much on what's going on overseas our own US economic woes.
While the US fundamentals are terrific we have -- it.
-- economy that's growing it's growing very slowly but -- Scott sustain grows.
We -- employment very gradually and improving and because we've had stagnant wages for a decade our workforce is hyper competitive globally.
And also we have the benefit of having much lower energy prices respectively thanks to the shale gas revolution.
However we needed catalyst to take the market to a sustained higher level and I think realistically that has to be -- -- That these strengths are building that we see as a -- -- clarification that housing -- hit bottom.
And is going to start to be a positive contributor which is what I think will be over the next I my -- and -- will have a caught lost.
Come in Markey and -- Follow up with your characterization of the US economy is being terrific he might have gotten a fed report today on the median household income dropping to 77300.
Currently from 126400.
Back in 2007.
A lot of people might disagree with that statement.
Are there fewer investment dollars going in and being put to work now because of that and I'm not even getting into the whole.
Dynamic of of sentiment that a lot of people still feel even that's your point we are in expansionary mode.
That it feels like a recession but -- first get get to those investment dollars a -- well.
Well I think that it's a very natural reaction.
When people look at our equity market.
-- -- I think people agree it's very very cheap what do you look at it compared to bond yields compared to historic majors like PE ratios things like that.
But as long as we of the uncertainty.
About when will -- start to accelerate.
And what impact will we have.
As we see resolution of the European financial situation people aren't gonna put their marginal dollars into equities even though the rates for fixed income securities are extremely low so -- it again coming back to I think we needed catalyst.
That has to be higher growth I think we have to wait probably three to six months maybe late in the year to say yes the economy is ready to have a a little bit -- re acceleration.
Margie -- thanks -- year thanks very observations have good afternoon.
Thanks again -- everybody would characterize the -- terrific right now but that's why we invite guests on for their take.
