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Glenmeade Director of Investment Strategy Jason Pride on the outlook for the economy and its impact on the markets.
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-- one of the things we noticed today OK I don't know if you guys -- but the volatility index that so called fear gauge is moving higher today about 5% higher.
After hitting a five year low on Friday when that thing hits a low.
It means that nobody's really worried it's it's complacency.
In living -- my next guest says were in the middle of another worrisome time but.
He call also the growth scare.
But should you be too scared to invest -- -- -- miss out on opportunities if you sit back joining me now on a first on fox Genovese Jason pride.
-- needs director of investment strategy OK so a scare.
I've been hearing now for several months should that mean that we should be paralyzed and staying away from investing.
We need to differentiate here growth scares a period of sub par economic growth not -- -- -- recession.
So we have a slowdown that's -- hand it's been going on throughout the summer.
We don't think the data that we had had some economic surprises to the upside recently been not enough to really take us out.
Of -- scare back on a true growth.
Pattern said that believes this in kind of a tenuous situation especially with stocks rebounding as far as they have but if you wait until you see.
The light at the end of the tunnel is that -- too -- I -- if you look at the gains that the markets have made over the past year.
Double digit percentages for the Dow NASDAQ S&P and Russell I keep bringing this up because when.
You know -- -- teach people that just because everybody's talking about fear and worry about growth doesn't mean that you're not having an opportunity almost works conversely.
Brilliant really depends upon valuations -- you're getting in the marketplace.
-- this market is rebound -- so fast so far when near term basis -- -- our perspective is look it's not really.
It's really built upon a lot of hopes and expectations for Central Bank easing for stronger camera economic data.
Which we haven't seen really coming on don't see the -- evidence fault.
That doesn't mean that the market can't keep rallying.
But it does mean that perhaps -- near term basis and maybe a little bit ahead of itself from -- to retrace it won't let me throw this such you.
Manufacturing.
We're getting the PMI -- the -- producer but you know the -- purchasing managers index which gives us a sense of health of the manufacturing sector in the United States.
One of those slightly bright spots in what -- we'll take a little tiny -- white ball wherever we can but course in manufacturing in the US what do you expect here.
-- we still think that we're not sluggish Birmingham for businesses you you -- the unified be serving in the small businesses UC BI SM survey.
Still hovering right around that fifty line this isn't a strong environment.
-- certainly -- silly recessionary environment it's a slower growth environment go -- have -- fits and starts -- but tell me something we don't know because -- help all of this fits and starts slow growth one point 8:5 -- 2% -- from lucky.
So -- investor -- we've got a bunch of them watching right now.
What do you say to them it's not simply stay on the sidelines is that it's not stand aside this is -- -- -- -- -- that just a matter of earnings it's not buy cash and treasuries that's also.
Not jump up and down -- just equities and occur while it really the things.
Throughout the middle the risk spectrum that we think -- more optimal for this environment this is a slower growth environment.
Not necessarily recessionary environment it's also higher volatility environment despite with the -- says we think that this could still be.
A pretty Baltimore environment that we passed through once we get through perhaps the the August vacation -- slew.
You know trading environment.
Always right there right now is look at the lower ticker right now because you see that the Dow is now down just seven points at the moment while volatility is up now at six point so.
Could we turn positive right now we'll be watching all of this and by the way Jason's going to be back with a whole bunch of ideas to specifically.
On how to invest without getting crazy about just purely equities so -- -- we'll talk to Jason -- he's got 21 billion in assets over one made so we won't hear what -- -- to say every.
