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The economy in -- dire straits is the current market sentiment seems to suggests well thankfully our next guest says net.
Joining us now -- has -- Partner and senior economist for -- -- -- Why not I mean Europe can't get its act together it seems like we certainly can't get our act together here at home and -- and the notion they got good news but.
Kind of hard to -- Well a -- isn't good news which just not as bad as the market's pricing it's less.
We it does look at this plenty to worry about we've got a fiscal cliff we've got the European situation that looks like flying apart -- gates.
There's a lot of concern about the US economy process.
The deal likely it is six congress will not drive -- the fiscal cliff notes -- -- Thelma and Louise there is the likelihood is that the Europeans particularly the European Central Bank.
Will re enter the fray as they did last year.
And that the US economy even though it's plotting it will remain plodding -- Sink into recession all of these dire things are priced into the market so even if it's not -- even if something just and -- -- the market can move up.
It's interesting right muddling through is better than nothing I suppose but yet you have a 10% upside on this market for year end.
-- actually thing and we're gonna do more than model.
-- the market can do more than mother but that's largely based on pricing I think the economy will -- Europe both continue to flounder -- will probably hang together.
But if you look at pricing in this market but you're looking at multiple -- stuff spreads all the various metrics -- have to ensure market that is anticipating a -- and you're anticipating disaster.
I get so -- I do -- that 10% my powerful.
Well like classical -- -- -- -- that he fought not good things just relief.
And mainly fixed income area you wanna stay away treasuries and agencies to places where people hiding the -- and move toward more credit sensitive instruments.
Architect session highs of somebody out there's listen to you milk and you know than what we probably don't know is that you are an expert and all things Japan.
And we don't often talk about Japan we always talk about Europe certainly China should we be worried about Japan at all.
Well I think it does Japan is is is going to remain in -- it's gonna have another -- decade.
Right now there's -- problems he'd be expectation in Japan of this survey of imposing a new.
Sales tax is probably can restore that economy.
I don't think Japan is going to be in a recession is probably going to be moving sideways says it has forever corporation extremely attractive we have to remember that's just as the company's headquarters in Japan doesn't mean it's not a world company.
And there are some wonderful -- in Japan -- the economy itself sideways movement.
-- and I hope that doesn't become the United States of America none has body of lord Abbott thanks again on the phone talking to us there.