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Markets’ Biggest Risks Today

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  • Description

    Jeff Sica of Sica Wealth Management gives his outlook for the markets.

  • Duration 4:54
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With ten year treasury -- still well below to handle debt clouds hanging over Europe and America.

Where bears stashing their cash well cash happen.

Yeah it does mean.

-- is self described hopeless spared Jeff seek a president and chief investment officer seek a wealth management is -- happened back Staten.

Miller -- listens Peter's report on the election campaign heating up you -- An election year don't -- -- hope here because of that.

Well I think I think it -- to have to look at the history -- to just say that that's the sole reason that the stock market is gonna move up there.

I think is a little bit shortsighted because the reality is.

There has to be a number of factors to help the market move up.

And those Kyra that apparently status is a dangerous market yes absolutely I think.

I think if you look at the market in terms of where it is today in that and that and that.

The the problems we have coming out of Europe combined with the fact that you have you have a rally like we have today.

Which.

We get we get -- unemployment report which is not good we get we get consistent economic reports that are not -- and then you have a market rally.

It's all over this anticipation.

This whisper of more.

Quantitative easing this is entirely liquidity driven and higher -- -- entirely focused on what the Fed is going to do.

There's the argument though you -- the Fed that they will institute another round of easing and that could create what we have seen a wealth effect for the stock market how does that figure into your outlook.

It's it's fit the fact that the wealth -- -- in fact that wealth right now is the same level was in 1991.

The fact that that the jobs report and didn't do the up the employment situation everything we have.

All the negative headwinds and the fact that stocks move up solely on the reason of -- My unhealthy corporate balance sheet and it she guessing -- and just trying to play devil's advocate with you well -- do you have a do you have you do have when you have valuations.

Better valuations.

Those are good things but you have to look at the backdrop the economic backdrop of the economy.

Really determine whether those valuations are gonna make a lot of sense when when when push comes to shove.

And that's really where you have to think about -- valuations how -- when things are really negative.

And sellers are selling and I was looking at violations.

Are so that's -- you like gold and cash.

Gold has always been one of my favorite assets so I've followed it through a very long time.

Gold tends to do do well in all different types of market environment it is more volatile than it's ever been.

And right now to not chase the market rally and -- chasing the rally sometimes.

Based on on what I would consider.

Minor reasons more work I mean I'm one thing I'll say this is no doubt in my mind that the markets -- rally on more easing.

It's whether or not investors want to chase that rally and risk this this whole facade come to a -- You -- you mentioned the Fed's report this week on median helpful household wealth dropping it'd early ninety's levels down some 40% right devastating news.

You're bearish on the stock market how can people earn money -- they can't really invest right now I mean these are troubling time.

Right and -- that's why there's this always this great divide between the stock market and in the the economy people think they exist separately but they really don't.

If people are not doing well financially.

Liquidity added money is only gonna work so long eventually that great divide.

Becomes less of -- divide and markets markets in the economy declined simultaneously.

OK to deleveraging world right now fast forward let's say let's be optimistic we survived the fiscal cliff here in the US -- up.

-- one way or the other with Greece without Greece we'll find out this weekend.

It is that the catalyst is at the shift your looking -- to bring in a more bullish outlook.

It's gonna take a lot because I think it's gonna be the do the -- to make me more and more bullish and I'm not committed to being a barrel would love I would much rather like to be a -- But I'm I'm gonna be what I what I am and the fact is that -- there are things that need to -- there are there's some short term things that.

The -- the European economy the US economy have to work through and I think the first step is just the knowledge meant that the past.

The past tools to solve these problems are not working I think once that happens then we can get a sense of moving in the right direction more positive.

Future than what we have now which is just a bunch of -- that.

It's just a bunch of words and I think that -- lot of headlines all over the -- coming at us from fifty different direct write headlines and promises and all these things.

That when investors look at they get some sense of optimism.

Only to be left with the reality that yet another plan isn't gonna work.

All right Jeff thanks for sharing your outlook with us this.

Appreciate it thanks.

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