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Ameriprise Financial Chief Market Strategist David Joy on if and when the Federal Reserve would take further action to boost the economy and why inves...
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Neither we nor you the investor can really be sure from today's testimony that more easing is on the way from the Federal Reserve so we brought in David joy he's got six.
31 billion of assets under management and Ameriprise Financial its gonna help us figure out how to profit no matter what happens this is a Fox Business exclusive.
Here's what I heard.
But Ben Bernanke will not be pushed under any circumstance right now to add more liquidity and to do that so called quantitative easing part three what did you hear.
Well I think a couple of things first of all he's hamstrung by the dual mandate which says full employment has to be taken into consideration -- at eight point 2% so.
I think he's got a bill but he doesn't wanna -- -- right away -- -- with the data shows -- he wants to keep his powder dry as long as possible because the other thing he said was.
We not only have to be mindful of economic conditions but the effectiveness of our policy options.
I think he's on certain about just how much help QE3 is going to be.
It was uncertain about the efficacy of that he also in essence said that their possible side effects although we haven't really seen inflation inflation is pretty dormant as it.
Not India's and we just got that news.
-- recently the headline number is pretty benign -- numbers pretty busy inside there in this funny room for them to do more but the question is.
When did they do what how close to you get to the election without being accused of influencing it.
And how effective is going to be I think they do it but I think they've maybe hold off until about Labor -- We've got we've got to bring back what you sat may first you said.
That you were bullish may 31 you said forget it protect your money keep the powder tried to day what do you say I still think you have to be.
Defensive.
And the reason is.
His Ted Weisberg said at the also that last segment I'm not so sure what's driving this market hit the fundamentals are not.
Very.
Robust year.
Weakness here in the US Europe China.
It's sort of policy initiatives and expectation that there's going to be a white Knight rescues keeping this market well he also talked about how -- been a lot of -- on earnings but let's talk about say for example the financials -- really have a true rally without financial support participating in that.
JPMorgan Goldman Sachs Wells Fargo Citi that you look at some of these names and many of them are down double digit percentages JPMorgan up 13% over the past year you've got Goldman Sachs jumped 23% Citi down 29%.
Wells Fargo though.
A bucking the trend at 90% my question to assist.
Are you buying financials right now that.
Yeah I but for a long term hold and by that I mean maybe 23 years in other words if you long JPMorgan Chase and 34 dollars or Bank of America eight.
And you hold up to three years you're gonna be happy but it's going to be dead money I think a lot of it not keep -- -- on the JPMorgan.
They will still despite this London -- problem that they -- quarter they -- -- said we will still report record earnings for the year.
So they're executing very well let's just not a benign environment for financial.
It's tough it is tough.
Dave it's coming back he's got some names that he'd like to name specific once -- drilling to.
