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RBC Wealth Management senior vice president Janet Engels explains why the markets will continue to rise until the election.
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Well our next guest expects the markets to head higher in the near term but she -- -- need to reevaluate after the elections no matter who wins I think everyone's thinking that.
Janet angles senior vice president director at private client research at RBC wealth management joins us now to -- I'm glad -- -- OK so.
Until the election you see this market continuing to rise.
-- for a couple different reasons.
The Fed is your friend don't fight the Fed we have all this.
Monetary easing around the globe not just in the United States.
Second point there's momentum in the market already the markets had a role to it we think that role will continue.
Third lots of portfolio managers are playing a little bit -- catch up this year they've underperformed that will be another contributor.
And quite frankly at the base of all of that -- son's sound fundamentals as well stocks are not.
On reasonably valued at this point.
So stock market QE infinity.
Global thus far off the table market rallies basically to November.
What happens then what is your reevaluation process -- election so couple thinks it's not just the presidential election but more importantly it's the fiscal cliff.
-- you know what happens in Washington to resolve that and that we'll have a lot to do with the economy I think from a short term perspective.
Confidence.
And the outlook for stocks you know what little lines in your notes that I found interesting was I'll take anything that is not negative as a positive is that we are these days it's -- it's less.
-- it's less bad and if you think about what has happened from an economic perspective we've achieved the last third soft patch in in three years so we had won in 2010.
2011 it looks like what we've transpired.
In the economy has been a soft patch.
We can't say that the economic data is good.
Think -- -- say that the Fed doesn't take the actions that they take if the economic environment is great so a less -- environment I would define as good.
So economy not great but they're definitely ways to get your 401K because you're not forecasting recession.
So that being said where I put my money at least between now and the election so I think.
When we look at all of the broad markets around the world we think the S&P 500 the US markets will continue to be one of the better performing markets on a global basis.
If I look outside of the United States and we often do.
We think that -- opportunities in Europe we may see a little bit of a pullback apple we think that there are opportunities here is that situation.
Is settling down it's not.
Completely finished but it's settling down and there are probably some opportunities in Asia twelfth.
In any equities in the equity market in Europe or in the debt market.
All argued the equity markets have some value in Europe.
Really are you looking at banks in particular.
I'd look at a broad a broad spectrum all of the major indices in Europe as a broad spectrum line.
A settling down in terms of the sovereign debt crisis again there's no silver bullet they're still issues to go.
Valuations.
For broad line equities across Europe are quite reasonable.
I wouldn't say that that's -- coal from now to -- the US elections but I think it's an area of relative value in the global marketplace that should be looked at.
-- -- take the risk of us today our Visa and -- manages senior vice president director of private client research thanks for being here a pleasure good step -- this candor.
