Fox Business
Expand
Browse All Video
Watch Live

You're watching...

Minerd: Labor Market on the Mend

Details

  • Description

    Guggenheim Partners CIO Scott Minerd on the current employment situation in the U.S.

  • Duration 4:07
  • Date

Clips

Also in this playlist...

Latest News

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

-- coming up but right now 163000.

Or eight point 3%.

What number matters more Scott minor -- answer that he's chief investment officer a -- -- artists.

I think I know the answer but what number matters more.

Well I.

I think -- the question is are related to why you're asking the question.

If it's a political question and a policy question eight point 3% matters a lot more.

If it's.

About where the markets are gonna go I think the employment number matters more.

When you talk about policy you give me I'm assuming you mean monetary policy that the Federal Reserve would be more concerned with unemployment rate -- the job creation number but how.

Why is why would that happen why would that exist.

Well in -- and it does -- fed has the dual mandate of unemployment and price stability.

And clearly doctor Bernanke has won the war on price stability inflation is not a problem as a matter fact.

He's telling us that deflation -- possibly a problem.

So -- he's completely fulfill this mandate on one side and on the other side is is losing the war.

And I think political pressure will mount on him to do some thing to take steps to reduce the unemployment rate.

Do you think that that is warranted do you think that the economy is in such rough shape.

That the Federal Reserve should step in with additional juice for the economy.

While they -- -- it's a it's a tough question because.

Hey you know that the Fed has long ago left the world of orthodox monetary policy.

And but yet at the same time there's no help coming out of the administration and congress fiscal policy is them.

Is doing nothing for us.

So I think at this stage of the game of the Fed is going to have to do some -- But I think they're going to be low -- two do more large scale asset purchases or what we call QB.

-- so I think that the next target will be interest on excess reserves.

Where the Federal Reserve cuts the rate it's paying on reserves to banks in hopes that those reserves will flow into the economy and create more -- -- how do you feel about owning stocks given that what will that be enough to satisfy.

Stock investors that didn't clearly -- more from the Federal Reserve and want to see more aggressive action from the European Central Bank.

And is that how comfortable are you buying stocks at this point.

-- I'm very comfortable -- I think that the number one best indicator.

That I have seen in my career.

Is the accumulated.

Advanced decline line the New York Stock Exchange breath.

And we have made new highs -- that over the last few weeks which usually leads to new highs in the market.

So that in combination with the fact that you know bad news his goodness.

In Europe every time we get rates and and Spain over 7%.

The ECB comes out of starts making statements and and is telling us that they're going to do something.

And candidly I think the monetary authorities are just waiting for the opportunity to flood the system with more liquidity.

And liquidity is good for asset prices.

You said sell treasuries earlier in the year and more well her -- On that if you look at the entire world of fixed in com.

But -- act absolutely I think treasuries are the most overpriced asset class in fixed income.

And you know -- actually might be one of the most overpriced asset classes in the world.

And given the data that we solve this morning the the treasury market has started to break down.

And I would expect that over the next few months that we'll see treasury rates move higher.

And we actually might get back to the same rate -- originally shorted them three months ago.

-- -- -- -- -- Keep this discussion and play the next time on welcome back any time Scott have a great weekend.

Great thank you day Scott Meyer got --

Load More