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Am I the markets -- on the stimulus -- our next guest thinks it's a big mistake he says global risks are actually overstated.
The market's extremely undervalued.
Joining us now -- that's -- chief market strategist with ING investment management.
I -- so I understand you correctly you don't think the market needs it because the economy's actually doing better.
But if you look at the summer rally started in June June sponsored July was positive so it's August.
This notion of selling today.
We thought wasn't going to work what we're advocating is get investors back into the market.
And then you get this QE stimulus not only not only from the US bank.
-- you had Alan -- from the EC -- -- initials and we said we forethought stimulus in the fall the bottom line is.
Don't -- that that I don't necessarily agree with QE3.
I think it creates on more than inflation.
But I still don't quite that bad.
And this market it was to -- was going up anyhow because the strong fundamentals.
And as you mentioned global risk is coming down.
Anyhow this just set the fire this that the spark.
And investors on the sidelines are our -- now they're watching -- not stop now see it stopping.
-- -- dog yeah obviously with the Fed making this move a big part of that was based on the unemployment rate in the struggle has been to get that rate down but you say that you believe that employment is better than is being reported -- -- based on an.
And why do you say that.
What you look at correlation between weekly initial unemployment claims that come on every Thursday in the unemployment rate.
Over ten years it's been very tight it's been very closely correlated recently in the past year that's broken down initial unemployment claims have been plummeting.
Means employment is improving dramatically.
But the employment rate the headline rate that everybody looks that it's being artificially high.
I think government statistics.
Are in question I think government -- as I may not overall payrolls are -- are.
And they reported in government statistics -- wrong.
Little conspiratorial there.
Not right so let's talk about getting people back in the market -- -- investors are watching a melt up from the sidelines let's get him back in.
Interestingly though if you don't think technology or energy are where they should be.
I think if you if you wanna sector I think he should be broadly globally diversified but if you wanna sector one that.
I -- myth this consumer discretionary.
Consumer discretionary over the past three years.
Has damn what -- top performing sector -- and all of that equities across large mid and small cap.
And the why why is that because I think the consumer is much stronger than anybody's -- really looking actually look at retail sales.
People that there was mixed reports on it but the bottom line is retail sales today.
This month is that an all time record high and we have a chart on -- -- -- has parabolic.
And and that's not commonly understood the consumer.
Consumer discretionary stocks but also broadly globally diversified.
Does that are now take -- -- -- just does a pretty anemic but we appreciate you're not ads always -- okay.
Thank you -- also says finally miniature theater that the -- is over Europe and China overblown he breaks.
-- -- so you're gonna -- as summer right he says otherwise we are indeed --
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