You're watching...
Goldman Sachs Senior U.S. Investment Strategist Abby Joseph Cohen on concerns about the outlook for the U.S. economy and how improving the educational...
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
-- in housing market is speaking of housing and it was just yesterday the Goldman Sachs upgraded.
Some of the largest home building companies causing investors to jumpin.
It is a -- the markets when Goldman Sachs speaks investors often listen.
Goldman has a track record of making calls that end up making people money.
So now we're asking what else does Goldman C in its crystal ball and can you capitalize on it joining us now -- -- Fox Business exclusive Abby Joseph Cohen senior investment strategist.
At Goldman Sachs welcome to the program thanks for joining us sappy.
Thank you -- You know we could go on a -- directions here but let me start super macro and that is that psychology that we were talking about earlier in the show where it comes to DuPont -- UPS and all of these companies saying you know what.
The worry about Europe and everything else is costing our customers to not spend money does that forces into -- double dip recession as you see it in the foreseeable future.
Who is the bottom line for us as we do not foresee a double dip recession.
But certainly we do see.
The deceleration.
In the rate of economic growth -- there are several factors contributing to it and at the top of -- list is in fact Europe.
You know outside of North America Europe is our single most important trade customer.
Fortunately for most US companies.
What we produce high value added goods and services and so they're not being hurt as badly as some more commodity oriented products.
But clearly we're seeing it even in these early earnings reports.
Where earnings are okay at the bottom line it's the top line revenue where there have been some problems much of that is -- to Europe.
And of course to the strengthening dollar.
Can I mean you look at the strengthening dollar that affected McDonald's it affected Coca-Cola but.
Let's bring about -- to the unemployment rate because it's been stuck in the -- about eight point 2% which is very -- -- but.
-- a different take on that's what is -- Well we think it is extremely worrisome so with stop they are full stop.
Or eight point 2% is not acceptable.
We do however try to look beneath the data to see what is happening.
First we see that the private sector of the United States is indeed now creating jobs.
We prefer it was happening at a faster rate but at least these numbers have been positive.
Where -- seeing the additional job losses are very much in the government sector.
Not just federal but state and local and we all know the story state local governments have to balance their budgets each and every year.
And if they don't have the revenues coming in they have to cut expenditures.
And they're doing it by firing government workers including teachers and police and and fire workers and so -- And this in fact is disturbing.
But -- work has tried to take and take a step back and to say we understand the severity of this recession.
Deep cyclical pain.
But what do we need to do as a country structurally to make sure that people can get jobs and get jobs that pay well.
And where we do see deficit has been in education.
For the last ten to twelve years there has been a widening gulf between those people with good education.
And issued in one way by people with four year college degrees for -- some technical training vs people who don't have it right now for example.
National unemployment rate eight point 24 year college degree the unemployment -- is just about four but it's double digit.
For people who have less education.
Those are among the things we really have to work on as a nation.
And we want to hear about the investment opportunities for our viewers can you stand by for just a -- that we want to hold everybody over quick.
