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U.S. in for a Slow Recovery

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    Cumberland Advisors Chairman & CIO David Kotok on the U.S. recovery, Europe and U.S. banks.

  • Duration 3:36
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Interesting anyway there is big news coming out in -- -- is talking about other worries of European markets that are gonna be trading tomorrow IMF chief Christian liberal arts.

Is raising a red light on the US economy in just last hour she was speaking in Washington and she says are -- uncertainties that could mean big problems -- our economy.

US economic recovery remains to pigs.

And downside risks have intensify eight.

They -- off to types one is clearly external.

And comes from.

And its potential deterioration.

And the second is domestic.

And is really.

-- the associated with number one.

The debt ceiling and number two the fiscal cliff.

David -- -- -- stocks are facing headwinds from the slowing US economy and our -- the course of our global growth David is chief investment officer co-founder.

Of Cumberland advisors David you say.

None of the issues that the US is facing right now US investors are facing is gonna get resolved quickly correct.

I don't see how it looks to me is if we're in an impasse for at least the rest of the year.

When it comes to political issues and this constant wrangling in -- -- Aren't let me talk to you about Europe because I know -- you're underweight Europe so that's the first thing you've got a major concern about we we happen though this summit last week.

Markets right in this country on the results Italy and Spain -- way that wasn't enough for you to -- change your vision.

Of investing in Europe start to look for some deals.

Well it.

Italy and Spain got something.

Merkel gave nothing -- to make a deal but she remains.

In a position of imposing the austerity budgets.

What are they get they got a pledge to get capital into their banks which they desperately need.

And to get that they have to ratify.

All -- parliaments have to ratify the changes we already see picked some of the country saying wait a minute we want collateral where we -- more security we don't want around the suburbs this is not a done deal.

David what about Friday we may get more fireworks than we want this week when we get the jobs report on Friday do you think it's gonna be another negative report.

Well -- Believe aren't my numbers under 100000 the consensus about 75 for non -- -- unemployment rate doesn't change.

-- the extended unemployment situation there is a chronic cohort of millions of people in the United States.

That doesn't change quickly this is a very long term work down to.

Which is why the US economy is only gonna have this slow recovery.

It's not -- -- accelerate and be robust.

Given what do you do light of this been spent the big positive airwaves yet is banks you let US banks.

You're playing it through ETFs right now on particular regionals some of the bigger names as well why US banks right now.

Well this month.

My view is that the banking sector sector has been beaten up for four or five years.

Everybody knows how bad they are -- you get a headline every day the latest one is with Barclays.

We had Jamie Dimon it goes on and on and on the entire banking sector.

-- the United States is for sale below its book value for years into a financial crisis five years into a financial crisis.

We think that these statements coming from banks now are accurate auditors won't exaggerate.

It's it's seven it's a fascinating time up for the nation's banks still has 2000 while David -- talk about her Cumberland advisors David thank yeah.

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