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Will Market Go Up When ECB Takes Action?

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    Highmark Capital Management CIO David Goerz weighs in on the European debt crisis.

  • Duration 3:44
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Has taken pointed out that you may know you've been watching -- that list claimant is over in London for the Olympics have forced when she was there she caught up with -- Pretty big player on Wall Street Michael -- grants from fortress.

Investment group not a guide as a ton of interviews so it's good to see what he would have to say about the situation and he did tell Liz.

That guy hit his firm is ready to act if and when Mario Draghi.

Finally does act here it is -- So you're you know we're we've we've -- long and some risk here will be quick to react -- -- -- comes through an address.

And think you probably could have a.

Six to 10% rally in risk assets and in the Euro I'm just trying to -- -- -- -- -- -- -- was -- -- risk assets in general some European stocks this -- and yes and -- You can see it if Draghi comes through with a bazooka you can CBS will be getting up at 1434 and forty talking fifty.

So that's kind of interesting ratcheted it hit logic there basically is.

You know win the action is taken by the ECB then the market goes up -- risk assets such as stocks but other.

Risky assets -- this whole interview with Michael of regrets today 3 o'clock eastern Fox Business Network but right now Dave girls joins us oversee seventy billion -- assets of hi mark capital.

What do you make of that I know we didn't get anything today but.

Is that pretty much right once that.

The European central by bank fires off whatever bulletin as the market shoots up.

Well I I think there's a lot of structural issues that we're still grappling with -- in in Europe this is been going on for two years so we are gonna solve it overnight and were in the midst of winding down the the European facility.

Which expires at the end of this year and ramping up the SM.

And I think that's going to be an important milestone in thinking about a permanent structure for the eurozone to actually tap into.

The big debate is whether we can turn this into bank like structure that will allow them to tap into the ECB at that point they really do have a bazooka.

And that would be very meaningful overall I think for Europe in general but its competitiveness in Europe it's it's the workforce.

There -- a lot of structural issues in terms of fiscal deficits and and monetary union is just very difficult without forget fiscal union and and political union I guess.

I'm trying to get -- is what I took away I was just a short hot SoundBite.

Of Liz is interview but I take away from that is that a fortress is sitting there saying themselves.

-- at some point it looks like these guys are gonna act we don't know exactly when but we're going to be readiness is we get a hint that it's gonna happen.

Boom we're gonna jump on it or try to get out ahead of that and and the market will shoot up is that -- is that the same mindset that.

You'd be taking forty or -- -- much more cautious than that.

-- we look we take a step back and look at war were priced in terms of valuation for the stock markets around the world.

We think that that stock markets -- priced relatively cheaply the very compelling at this point.

Earnings growth has been pretty strong in the US and and we think emerging markets are coming back on line with China cutting interest rates and India cutting interest rates and inflation overall coming down.

So were overweight for clients at -- mark and our our parent union bank right we're looking for.

An opportunity deploy cash into the market so from that perspective.

There's a lot of threats that we're dealing with.

20102011.

Is still very fresh and investors mind so it's very -- conference.

Wolf for people to make that quick -- shift in just say the world is all better now.

And I'm going to invest but we know that equities will discount six months ahead of what what is actually going to happen.

And as a result we -- we are positioned to be overweight already.

And would look data at that point Arctic -- from -- market David thank you very much for joining us.

Thank you very much.

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