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Don’t Get Too Excited About Europe

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    Burke Financial Strategies CEO John Burke gives his outlook for the U.S. and European markets.

  • Duration 3:25
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Hi this focus more back here at home it's all about earnings in the election according to our next guest and he says there is no point get excited about a resolution.

To the European debt crisis as actually just kind of alluded to because well -- always disappoint us.

Joining us now John -- CEO of -- financial strategies you know they do we discipline is that the same time they not rally the market I -- -- they had to do say.

We're all in and the market goes up.

Yes it goes up and then we find out that they don't really meaning if anybody can expect on it goes and we -- account up and down our whole year.

We take a look at the market and the economy through earnings reports and defense 292 companies -- of the -- and 500.

Already report earnings spent and what -- -- so far is that earnings growth is about 5%.

For the year.

But revenue is not growing revenues are down but just just a little bit -- 1% you're today.

So with that revenue growth down and -- GDP at one and a half percent clearly the market -- -- -- clearly the economy.

-- -- waiting for this top line growth for -- -- -- -- quarter after quarter we've been saying by you know profit -- earnings are doing fine we're not seeing that top line growth but it's coming.

Hasn't come and is it all still because the consumer is too nervous to get out -- and -- all the stuff.

Who were trying to figure out.

Illinois your question what is the market telling us in an impressive market is telling us at the top line growth will be either because.

Market is up over 10% year -- -- Here we have this this economy it clearly is not going anywhere in and the uncertainty if not.

-- earnings -- going off growth or was the last two Summers at the market this -- doing just fine.

So -- so what is the market try to tell us.

Right it's a great question because this time last year.

It was the week from how we -- seeing buying -- 300 point swings right before right up until that you know they fix these so called fiscal clip over that back -- the debt crisis back then.

Here we are we're up against it again and it's just gonna get worse between now and the election is -- But we thank you know they talked about the economy back in the ninety's with is golden goldilocks economy -- -- it was just right and we think the economy today is more like.

About the three bears the free bears being the the US economy which has been very weak.

But of course Euro which thank you -- See more there in the emerging markets for the first time -- over ten years have been have been -- disappointing.

What we think the markets are are anticipating is not good news out of Europe because we don't think that's gonna comfort for some time yet -- but we think that the -- going to start to get some.

On the one hand Cathy -- and we think the stimuli in emerging markets wheels finally start -- So then let's get right to your picks -- I guess that all plays into it right now you're the industrials is where you guys are are investing.

-- -- being one of them national -- the other and that's sleep -- like that that's.

Emerging market -- Well we the first always done very well this year you're today with with consumer staple stocks but they become very expenses of work -- trying to find where the bargains might be in.

Eaton corporation -- and industrial.

We we try to get most of our clients are are owners of small businesses.

We're trying to get our clients to understand when you're buying a stock you're going to business.

He has -- as a business it's delivered early after dividend growth now for over thirty years in a row a nice dividend yield.

And though it's only a 1% -- today it's up 11% since lifer.

It certainly is -- nation national -- also up 8% for the year those are some good picks John -- CEO -- financial strategies thanks to be announced that.

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