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Ace Investment Strategists chief trader Yu-Dee Chang and Fort Pitt Capital Group CIO Charlie Smith on the outlook for the markets and how the outcome ...
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Our market panel into the discussion joining us now -- Chang eighties investment strategist chief trader and Charlie Smith fort Pitt capital group CIO and principal -- to see above.
You DIY don't -- regularly ask you about China because that we were just talking about Yum! Brands they specifically mention the reason they did so well much better than expectations was because.
Of the revenue that they were getting from China from their Chinese the roll out other Chinese operations.
That runs kind of counter to the conventional wisdom that China is gonna slow down tremendously doesn't.
Yeah I know I think Phil's right first of all I agree with on that Chinese feel real often -- right so whatever -- -- -- -- -- I should do well but you know -- now -- a point I had hoped the -- is actually very interesting point slowdown China everybody knows that I sold -- you are saying that we're seeing pretty much the worst.
Often it's what endeavor that the seven -- half percent growth is pretty much the low and from this point up there revert back and start coming back up saying that they're slowing down but they won't be hard lending to me.
That is the key point to see.
I think -- China does stabilize front there is going to help other -- economy tremendously by in my opinion is still remains to be seen it's not quite sure I'm not quite sure.
China will definitely hold with seven have profound level though.
-- Charlie you see reason to play defense heading into the upcoming election.
In fact you say there's a way to play if Romney wins or if President Obama winds.
What what -- that exactly -- -- there was.
A very stock -- -- the election obviously.
Well if we get a win for Mitt Romney I think.
The chances are that capital that I believe is pretty much been on strike for most of this year.
Is gonna see the potential for a better economy in late -- thirteen 2014.
The first year of any new administration doesn't tend to be that good of a year for the market or the economy.
But I think the markets would definitely see the possibility come off the sidelines capital coming off the sidelines in the latter part of next year and into 2014.
You know as far as Adam and Obama win you had a previous guest talking about how.
A win for Obama is pretty much been discounted.
But I think if if we do see an Obama win it's gonna be pretty much capital still sitting on its hands for the next four years I know that's a difficult proposition but.
We may say it -- -- such Charlotte religious get a straight if if in fact.
Romney wins the election Obama is out that means that the fiscal cliff is resolved right that -- -- taxes are not gonna go up.
And therefore you think all of this cash is because we have seen great market gains but it's been on very low volume you think that will change and the volume -- -- -- the market.
Yes I -- I also think.
Even more importantly is a potential for Romney to.
To reverse Obama care I think particularly for small and midsize businesses the the amount of unknowns out there in terms of employment regulation.
Is really sort of causing small and midsize business people to just sort of fold their tents right now and I think if we do get a Romney win.
For small and midsize business says that's gonna really free up some activity.
Net beauty checking you're looking and looking at the S&P 500 closed at 1432.
Today.
You're saying it's time to get out of stocks -- into cash.
However is their level to which this market can fall to.
Where you would be a buyer again.
Yeah absolutely actually I'm actually long term bullish I think we're in this down -- all of this uptrend.
So short time I'm looking -- that 14100.
Liable if you look at -- that's about what about five and a -- 6% so called retracement.
If you look.
This market has gone up about -- 115%.
Since.
March of 2000 not but doing wedge we've had had a -- pullbacks already this will be a thirteenth one on average.
About seven present yourself so I like the fourteen.
Hundred level and also I like two different sector that tell you that has nothing do with election who wins or not one is a precious metal has few -- -- you win.
With all the money pump into this market inflationary pressure down the -- you got about metals.
Or somehow the war economy does not hold here then there's turmoil we got about metals and energy market I agree with -- that energy if you look at it.
Basically is very volatility.
Going nowhere between eighty and -- ten got a viable and sell high end and use some -- usual strategy in the middle right now where in the middle.
Charlie let me get to your -- I'm -- I'm looking at Comcast AT&T Verizon Boeing Honeywell.
To me that sounds like picks up a bullish economy that is -- -- economy that's ready to get going again you're talking about Boeing you're talking about the telecoms -- Honeywell.
He is MI right do you think that the economy's on the verge of doing better than it has been which is.
Minimal at best.
My view the telecoms is a good way to play defense in the aerospace name says sort of trying to capitalize on the growth in worldwide air traffic but -- yet.
Obviously Comcast has seen an improvement in the ad market the cable cut or the the that cord cutting phenomenon which people were so worried about for the cable business has just not happen meanwhile there's good growth in wireless.
You know the iPhone is gonna hurt the margins for the big -- the big players Verizon and AT&T here in the next couple of quarters.
But they're also getting nice price increases for data services and that's gonna drive revenues here in 2013 point fourteen so.
We view the Telecom is mostly -- -- -- play.
And the the aerospace companies a little bit better open way to play worldwide air traffic growth and play offense hey guys great analysis great overview -- very -- specific -- as well Charlie Smith beauty Chang thank you Democrats.
