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-- sinking following the weaker than expected June jobs report but we've got a money manager.
Who says that disappointing number is actually good news for the market distorting mean out of explain -- -- -- Portfolio founder -- chief investment officer believe wasn't good for the markets today but explain that big you know what what do you mean it's good this number is just for the markets house.
Hello who has I'd better explain myself you know we're we're we're expecting we wanted to see some bad news come out until we kind of like the -- the market dries you can tell.
You know bad news hasn't really made the market you know -- that ISM numbers the market actually did fairly well.
Here's what it tells us it tells us that there's a high likelihood that the Fed is gonna have QE3.
They might print.
500 billion happy -- in dollars.
Into August and September because employment is just not happening the way that they want and inflation just isn't there so.
Let me put this way.
If the Fed's gonna put a half a trail into the market I would say that's gonna Jack the Dow Jones and that makes a good summer for us.
Well Jack as in Jackson Hole two years ago that's exactly what happened what Ben Bernanke telegraphed that he would be getting involved in the first.
Quantitative easing all that liquidity coming in the market -- -- moon shot we saw that so what you're saying is that bad.
But I don't think government trade but Federal Reserve trade is something that is just possibly a sure thing for the markets might question becomes look what happened yesterday -- China's Central Bank.
Intervened they cut rates as a surprise the ECB cut rates that was expected but the -- -- the Bank of England also announcing more extension of their liquidity their effort.
Markets didn't do much on that is that morphine -- not strong enough now.
Think so and I think here's what here's what's at stake especially when you look at -- China and the Euro zone.
And by association the Bank of England.
We are expecting traders are expecting that we keep money loose.
In the eurozone and also in China so I think that if they didn't have this unexpected cut I think the markets would react very badly so I think it's when this -- -- where.
It may have been unexpected on timing but we need that -- money just to keep the Euro -- afloat whereas in America an extra half a trillion.
It's more like Christmas right right.
OK let's say you're right let's say it happens let's that this is big movie but let's say -- mate OK -- it happens let's say -- the market has its intended effect and starts moved to the upside where should people position themselves now from where you stand what do you like is -- point on the globe where you feel that's a place to invest.
I think -- if you're looking in say for instance the US I think that you still need to stick with things that are not commodity based I think if you're looking for an interesting place.
Outside of the United States because you know the United States is my primary place I like to invest I would look at some place like Japan.
Always makes people upset about Japan when I mentioned he'd been in a 23 year recession -- I've been waiting it's about to -- I don't.
Every -- why would you even mention Japan sometimes I mentioned and and people go -- the panel -- start yelling and throwing things.
Here's that that Japan -- the third largest economy used to be number two it's number three the second big point about Japan is they are getting population.
Moving from the farms so to speak into their ten largest cities so there industrial -- as far as people working is increasing now.
We know that Japan has a problem making babies but it's no worse than Germany's population rate and it's even better than Hong Kong my interest is just.
Getting the industrial.
More populated with young people third thing is Japan's debt half of it we talk about how big it is is intergovernmental.
But only not less than 9% is owned -- reporters -- United States we got a problem over 35%.
It's owned by others including the Chinese.
Some went it's been years when I was at a different business network people coming -- think Japan Japan I'm still waiting that we currently there aren't -- I was told to -- Japan as a child in school I never did.
I don't feel that I.
Great what an endorsement here we got so -- used to people some energy you're not right now give us to plays to avoid.
You know master limited partnerships are used to bite exchange traded note AMJ was ticker symbol.
We sold all of that in the last week that's a big change for -- big change of philosophy and also individual stocks we sold Halliburton this week.
Just couldn't handle it not only do we not have demand from China for that marginal barrel of -- well.
Halliburton has a lot of promise that BP spill.
Hundreds of billions of dollars in litigation may take months just avoid energy -- because we don't have inflation we don't have that demand right now.
We've got to see you thank you very much.
Thanks I'm waiting on shine -- became ten years.