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Ryan Detrick of Schaeffer's Investment Research on the FOMC minutes and what is needed to boost confidence in the economy.
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I outlets such carry out -- this with further reaction to the FOMC minutes and -- Ryan Detrick he is senior.
Technical strategist at -- investment research Ryan.
What's your reaction to what was discussed.
-- -- the Federal Reserve.
Right here actually really doesn't seem like anything new we know -- there we know that they've said before there gonna come -- if they need us.
-- backstop again we are it's very early on noble we are having a little bit of a pop Pearson haven't have backstop clearly the market likes hearing happen again.
Nothing new I think it's more relatives say Jackson Hole in the -- September meeting obviously.
-- also the other things they discussed Ryan perhaps lowering the interest rates for banks.
Who part their money essentially with the Central Bank.
The ECB is considered doing -- and in fact charging Tony it's a negative rates.
Is this a good idea perhaps to get those banks to put the money back out where it should make.
You know I think so I mean really well know they can do -- -- buy bonds keep interest rates low interest rates already low interest rates as a guest before -- said interest rates sort of beneath the financial crisis so to me it makes sense it's all about confidence that they can get do the consumer -- confident that the banks more confident we think this market can rally.
Simply nothing improves just have confidence comes back low PE multiples do we get into smaller reasons -- -- bullish here but almost all the confidence in that can be one way to get that confidence -- slowly slowly creep back here.
One last question on the FA well when we do hear from mr.
Bernanke at Ted Jackson Hole do you think the rhetoric will be a little lot easier.
Because of the more positive economic data we've had since the last fed meeting.
-- really -- -- -- you know offerings that we think to some of the houses the I know today's housing data wasn't great but all all the hasn't there's been pretty good that's the -- I guess to the economic data.
We -- you know nothing the Fed does will be anything near what if housing goes up the multiple that can do to consumer confidence is much greater than any way the Fed to flood the market with money whatever you wanna say -- I think housing pulls a key objectives going higher.
Beckon of the multiple looking bring that confidence back and probably also -- flee -- higher equity prices with thank you.
You know the last time -- -- -- -- predicted this summer rally so well done on that but do you think stocks hit just little overbought now or -- grind higher.
Well that's right I mean it's -- salute the markets everything -- -- expectations now obviously -- in early June when I was -- with you so look for summer -- expectations of very low.
Now we've had this nice rally and now expectations -- -- come higher but.
You know simply -- were obviously where we were back at the peak in early April look at some of the some of those that are out there we're still not near the level -- we've seen.
You know at previous peaks again coo we pull back here I'm almost three -- -- pursuit rallies a secure every one -- at a technical level.
Yes and -- since the fall all the upward price section our opinion is still here.
We want to see fear on this pull backs they're gonna happen over half pull back eventually.
But what the -- to comment and we think they'll be buying opportunities into the end of the year her actually and talking -- -- right it would seem to -- -- exceptionally low levels do you expect more volatility looking forward.
Well that's right in the -- it's really was going to vistas of -- is down fifteen lots of people have been talking about over and over the -- is low means complacency well it's true but Divx actually existed before 2008 if you put packed in.
You know the mid ninety's and last decade of extreme between ten and twenty for multiple years so you know just because of -- -- -- doesn't you gonna have a massive spike up -- two reasons also we think you know the -- -- as the -- much complacency is people think.
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