You're watching...
Doug Roberts, Channel Capital Research founder and chief investment strategist, on why he believes we are in a ‘zombie economy,’ that is stagnant.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
-- I I next -- says we're in the midst of a zombie economy quite gone off the cliff but not -- -- there.
Joining us now Doug Roberts managing principal for the channel capital research institute Doug we even here -- about the zombie economy for a while now are we officially Japan.
We're going Japanese definitely in -- -- now how -- how much more we go depends upon our current path.
Right now monetary reform can basically cushion this stuff can't cure it.
So we need to address some of the fiscal problems we're dealing with whatever the solutions.
-- been been doing that.
Right so monetary policy you're talking about more liquidity injected into the right we've seen it hasn't worked we go fiscal side now basically -- -- -- congress again -- -- Well actually it's -- the fiscal side has really congress' responsibility.
They've tried to punted to the Fed right and now the Fed is -- it back -- to congress.
What do you think of the -- market reacted today after the speech we got that we were up about a hundred we get the minutes it falls all the way down only twenty.
The hundred points come back are we digesting it or is the market just -- Sure what he's gonna do right now it's more -- breathing a sigh of relief.
If you look at it from where we are right now verses where we were a couple of days ago -- we did was really really recover from the selloff.
That we have the day before so people were scared that may be something was gonna come out of that speech.
Now let's say that was unintended may be some more hawkish dialogue.
Possibly something a little bit more that the economy is improving.
That that point it didn't come out that way but then again.
There was no further indication of QE3 so we kind of went back cannot really volatile right could in fact or were boost we were before.
Right nothing new nothing -- straight and yet our about two hours on the economy we have a market that's not been anywhere up well over twelve point and 12%.
On the Dow S&P NASDAQ all up for the year -- so.
Zombie economy I can be missed in this rally from that it.
Yeah but ultimately what you have to look at is if you look at really.
-- some of -- higher yielding bonds they've been delivering.
Some similar levels of return so really the reason why it's sop is that -- actually we're forcing people under the risk for trade.
His a lot of people would just rather be in CDs rolling them over but.
If you're sitting there before you're used to getting 5% -- -- 1%.
You're gonna stretched take risk and that's why the markets up you have no choice step Roberts thank you very much have a treatment and -- -- to have.
Our.
