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Economist Peter Morici on the current market trends and whether the election will impact stocks.
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So much economic news out this week some of its super duper -- is they all leading up to next week's giant jobs report.
Here to discuss that and why well the market might not be in the tank University of Maryland economist Peter -- C joins us live from Washington DC Peter out just -- -- -- Just in the Dow it's up 3%.
For the month so far year to date it's up more than 10%.
But then you have with the durable goods order came out with that was the one that was the shaky as -- -- in terms of what the future economy looks like.
So Peter why isn't may -- the economy isn't as bad -- the market's not selling off on that kindness.
Well what do you -- your cash is the question you know all this money's coming from Europe because of fear over there and the Fed's pumping lots of liquidity into the system.
But savers investors don't have much placed the put their money under the market the fact is -- be just what a spider.
You get better -- Asset that's.
S&P ET FS and 500.
Mutual fund of some kind exchange I had given -- Right right that would be an exchange rate of what are you white vanguard -- are USA -- you get one and a quarter percent on your money in dividends if you park getting treasuries get nothing.
And there's the potential for an upside.
So I think we no longer term I think folks do realize the US economy is fundamentally sound.
And that the stock market is gonna go up on a secular basis so does not a lot of risk and just saying I gotta ride the ups and downs -- my money very get something.
You know what little things I think it's kind of -- interest thing.
Phenomenon somebody wrote about it this morning I think in the New York Times is how all this data.
Data mention this.
Is not great especially over what just not great general the GDP did is probably the best example of that.
Yesterday but the confidence numbers are starting to improve and the reason -- bring it up is because that would.
Be something that -- the presidential elections we have an economy that's struggling.
The president polling well as people become more confident about the economy doesn't seem to make a lot of sense what do you make them.
I don't think it makes a lot of sense to me either I think what's happening is folks a given a choice between.
Romney and Obama and -- -- the economy's not great -- make a better and they don't really have a lot of confidence that he can so they say I'm gonna vote for Obama.
And by doing that psychologically I think there's eulogize I guess I guess things look better than Denny's then than than a Romney says you know the way mr.
Obama says things are going wet going gonna get better so I'll go along with that.
I think -- some extent people are kind of rationalize.
Their own presidential decisions.
-- Peter is it -- people folks don't have confidence in Mitt Romney make it matter or did they not have confidence in what he has talked about so far.
Because again if if this the second part is the case that he could change the way he's discussing what he would do and that would help him which is it.
Well I think it's a problem of what he's discussing there is a lot of meat on on mr.
Romney's proposals you just need to go to the website and see them but most folks aren't gonna do that.
I mean people don't have confidence in Iran because he hasn't made the case -- is saying you know China is cheating us and we have to do something about China.
Doesn't do what you have to explain to people how.
You know what you're going to do.
How it's gonna create jobs and member of most people are working.
So what their interest in and is not a job.
Better better job court there income rising how is -- gonna cause the labor market to give them a better wage and he hasn't really explain that it's a tough thing to do.
But he hasn't tried very hard and frankly he's surrounded by bush -- economists who don't believe it is platform.
Yes -- it doesn't have a -- -- out there.
-- thank you so much -- and -- a great to see you as always have a great weekend.
Take care.
