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Wells Fargo Funds Management’s John Manley and Trean Senior V.P. of Derivatives Scott Shellady debate the outlook for the markets.
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And let me bring in John Manley hear from Wells Fargo he's the chief equity strategist.
OK so that's what you do equities yet -- Short term bearish John Y in what does that mean you just keep your money out or -- -- keeping it in and sitting in safe places IE.
You keep it in wait I think that the one of this you have to remember is that September is not a great month historically.
But also we sort of come back him in a -- -- learning new word every month in August its corporate -- it's it has suspended animation Wall Street I think we come back -- -- -- what's happening your you know this election coming up in Holland.
And you know we may add Dutch election to Dutch uncle and Dutch treat as far as things we don't like to hear about from Holland.
I think there's some risk in terms of of earnings over the short term I think that the third quarter numbers will be okay but we may have to go through through iterations first I think we -- the top of the trading range.
John what's gonna boost the markets towards the end of the year than what's -- be -- catalyst.
I think the fact that the market itself is acting as a sort of nanny on on the world's governments on policy makers.
The stock market is doing what the bond market vigilantes did thirty some odd years ago we've become intolerant of kicking the can down the road.
And I think one -- two more iterations to the downside sort of scares people into making the right decisions and that ultimately gets rid of deflation and that makes -- stock market won't put off.
Scott what do you see for the S&P 500 Johns is about 1250 to 1450 that's a pretty broad spread but short term what are -- looking for.
-- -- short to -- to see a temper some pullback you know we've.
We've been rally on helium it's like.
As a trader behind me would say it's like trying to keep.
It's like trying to keep a beach ball under water so we've slowly but surely gone up we're ignoring bad news we take retail sales just tonight and that's supposed to be good for the market.
I'm telling you right now nothing has fundamentally changed and I think when we come back ever -- in September we get a little bit of a correction.
John let me bring you back into helplessly investor play this -- -- -- quite a bit of volatility although we aren't as tight range what are you telling your investors well by weakness is the classic.
Advice that I give out at this point in time I think the market is gonna -- an awful long way in the next two years.
But not necessarily next -- -- work two quarters or so I think we have to pay our dues and I think there are some very good large capitalization stocks out there that are very attractive.
I think we could be in the process of creating almost a new nifty fifty in terms of high quality.
DC yield good growth high cash flow market dominance people need something to retire from the sort of stock.
That's more than on what you say -- say -- you know when things are a little bit -- we haven't seen meaningful -- -- what you don't want people think I'm waiting I'm waiting and and one day down 200 points in the next up 160 the next down seven the next -- five.
Yes that's it it's all over the places and submit -- forces a Wall Street are clearly worked at this point in time of their force of the come beyond that.
There are things that I think you can you have to own stocks at this point in time you have a long term perspective.
The market I disagree with that I don't think the markets expensive at all that the market's quick cheap the cheap for a reason I don't think that recent departs for a while.
But you know do you buy and it's 14100 do you -- the thirteen 54 or 12150.
I don't know but I think by.
Scott you obviously think the market's overbought why you.
What would you replied to -- -- -- While you know why because that look we're all excited about one point 5% GDP I mean the only way we're gonna really get out of this we keep forgetting that talk about it.
Our housing and jobs and those two things.
Fundamentally have not changed and until we have some sort of new technological innovation along the lines of -- as big as the Internet we're gonna see true growth.
I don't see this thing taken off -- right now as as he says you have to be involved because it's going up if you got money to manage you need to be involved right I think that we --
