You're watching...
Bahl & Gaynor Investment Counsel portfolio manager Matt McCormick argues if Romney wins, there will only be a short-term market rally.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Old -- up a little President Obama is leading former Massachusetts governor Mitt Romney by less than four percentage points in the latest election polls.
But our next guest says only one of them.
As a part of spark -- natural markets rally Matt McCormick.
-- is joining us now thanks for being with -- -- so the market kind of thinks that Obama has this baby one but what happens if Romney pulls off a surprise.
I think Dennis right now in trade is having Obama -- -- roughly 73%.
But yet Rasmussen has Obama only wants -- one of -- be right I think most Wall Street people think Obama hasn't in the bag.
I think if Romney does win.
There's going to be a short term rally I think really when you look at the market right now there's a long way to go.
Many people have expectations that the presidency is going clearly in Obama's favor.
I think there's more time we'll see what happens -- -- Romney does well enough secrecy pop in the markets and why only a short term rally why the lack of faith why not the start.
Up a near twenty year bull run like we got with the election of President Reagan I would love to see a twenty year bull run but if you remember when Reagan did win initially -- short term pop and -- the market went down.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- F I think there is going to be a long term rally.
I think -- Romney has a better chance of sustaining that vs an Obama presidency and the only -- otherwise you think that we are pretty much headed down we will finish the year lower than we are right now I think there's a lot that has to continue to go right whether it -- Europe whether BR economy whether it be the geopolitical issues.
Any one of those issues goes wrong the market's gonna take a breather.
And yet.
Include individual investors have stayed out of this market center -- dollars and 6800 always waiting for that.
One of those things could go wrong and they aren't going wrong at what point surge you get some faith and start double -- -- -- -- -- -- what we're very conservative so I think when you look at faith right now I don't have faith in QE3 I don't have faith in European magically fix.
I don't have faith in stocks that couple weeks ago we're about 10% last mainly the money center banks and a rise only because -- -- -- European or fed induced printing press push them apart the fundamentals Dennis.
Don't have not change for the positive earnings growth -- our week you're seeing massive insider selling.
That shows me caution is the answer not being very aggressive and yet they do say that the stock market likes to forecast for the economy's going six or twelve months out Ken -- based on the stock market lately economy's going to be great are you now arguing that we have a total.
Disconnect between that stock market and what it says about the economy six to twelve months out I think when you look at what the Fed has done injecting massive amounts liquidity through.
Operation or QE3 that's not in that's not an historical perspective people thing that's gonna continue to go on forever but the law -- -- returns indicates that more juice is not gonna -- -- produce to see Amanda returns there's a disconnect in the fundamentals are weak I think it's.
Better to be conservative vs aggressive well luckily so far there's a disconnect between that easing actual stock prices have so far the markets like in those fumes maybe we'll -- very much of analyst Matt -- good job.
