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Wells Fargo’s Bryan Piskorowski and Zachs Chief Equity Strategist Jared Levy on the impact on the markets of Europe, China and the impending Supreme...
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The action here bright and that -- BBS I mean bullets or destroy markets Bryant what happens.
Let's take worst case scenario from the market's perspective.
What happens if they don't get what they want from the health -- ruling and they don't get what they want from what's happening in Europe.
It -- -- -- couple things that one and I'm looking at the healthcare ruling is so broad basing that you're gonna have winners and looters no matter what.
So I don't whether -- not -- an individual mandate broke struck down for example I think by the way on the pharmaceutical side that irrespective of that form it's gonna be ending up being net neutral on this looking at the at the situation in Europe the let me let's face it at the bottom line we've been dealing with sixteen or seventeen -- -- types of meetings with massive amounts of preamble.
And actually for me and where we Citi -- Wells Fargo.
Coming into this number I think expectations are a lot lower ready to be done this time around then maybe you've seen in the past so other bigger picture here and I think I can -- -- they -- -- -- -- guy was talking about the fact that it's either be bullish you're exactly very hard to be bullish from the standpoint that when you look at any media report on your continually focusing on all the bad things happening in the eurozone.
From our perspective what we're really focus on the fact that monetary policy on a global basis is very friendly towards market and towards the plight of risk assets current that said the flies in the -- -- from places like Europe.
And these -- the slowdown and hard landing in China -- we don't believe as the case.
But those are things could be issuing wit but bigger picture here stocks vs bonds risk -- -- -- is not risk yes that's I would lean on the side of breast.
I just wanted to say I think Jarrett said it's hard to be bullish here right here that eight.
That's right yet you said it's hard to people -- At this point how does that play into your picture right after it.
Well you know here's -- deal and to the point right we don't know -- going on China because the country -- -- the Communist country right data that comes out we're not quite sure the accuracy outright got liquidity airports -- -- Studies if you look at HSBC.
You look at these these guys are on the ground got boots on the ground they're saying if there's a -- -- -- In factories -- seen deterioration in housing commercial and residential real.
Matt king and remember these are -- Brian.
I mean the -- -- what remember that China's.
I have been trying to manufacturers slowed on the better part of two and a half years you know we've seen and to drop we've seen the CPI dropped I mean that's exactly what the market has been looking for the issue of the market right here specifically to China is the fact that you need -- goldilocks number can't beat the clock can't be -- had to be just right and when the market's leaning toward the negative right now the feeling is bad news is gonna be bad news it's not going to be just -- Garnett.
I disagree you know I think the bottom line is here the market is sort of being a little optimistic and you know what a surprise the downside both in Europe and angina which is very possible I don't think that the market is -- all the risk in Europe I think that the markets still believes that somehow you know -- cows at a comedy save the world jury doesn't wanna do this -- got their -- -- -- deal with the -- a -- about the -- Europe they're -- store everybody's gonna put all their bond together just back.
The folks who can't take the fiscal -- no they're not gonna do that Europe is still a big danger it's gonna continue to deteriorate and I -- remove a lot lower before it moved higher.
I just think we've got to be a little bit more careful here I think the world's -- but just -- -- to have that bullish stance be very selective prime less work.
Well I think.
-- my perspective let's in the market corrected top to bottom 10% we topped out and April I really do the fact of the eurozone is a mess and that is -- -- be an overhang for markets.
But bigger picture here is are positioning and looking out past this -- that we believe that equities are communicate -- like domestic equity selectively on the international front outside -- your.
Maybe a little bit more on the far is the bigger picture here we -- not wanna be -- long duration bonds -- right by the way Jared says we'll watch Medtronic they could either be a big winner big loser betting on what happened Medtronic is one of the -- stocks.
To be watching -- without healthcare decisions guys that was a great street fight thank you -- -- -- he Wells Fargo and Jared stamp bide your we're gonna come back in a couple of minutes for the S&P futures.
