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UBS Equity Strategist Jonathan Golub on the potential impact of the Presidential election on the market outlook.
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A number of analysts saying -- the market is facing too much uncertainty to rally through the rest of the year but we have -- -- -- just raised his target he says the S&P will hit 1525.
By year end.
He is UBS equity strategist Jonathan Golub and he is here right now.
-- to jump from where we are right now what is going to get us there well first.
It's about six a little over 6% so -- that's a nice move.
Between now and the end of the year it's clearly something that's that's achievable.
I think the key is is that we've had a massive amount of liquidity coming from Central Bank -- -- the ECB you have the Fed.
And when you have them do you know basically pump money in the system print money.
Markets move up.
We you're famous as the Fed trade embrace -- you can hated all you want but it's what's going to be the market it -- -- it and so if you said how are likely you know the stock's looking out let's say six months or a year.
A less optimistic but in the short term I think it's positive what's gonna make this move -- Spain has been reluctant to take.
The the offer from the ECB for for money from -- they're eventually gonna take that eventually it probably sometime between now and Election Day I think that's what's gonna push to mark up in the short term.
Talking of elections.
Because it is of C with time running out now before November 06.
What what happened -- -- say the president wins in your opinion to the market -- right now the market is really pricing in that Obama wins so.
I'll 'cause the T shirt guy says it -- Yeah I look at the -- -- -- he starts right it.
But -- the reality is is that it's the walls become a lot close there.
It did Obama really is right now is a favorite to to continue throughout Republicans would hold the the house but you have a continued democratic senate.
That means it for the same another it's effectively more -- the -- so what do we think.
You in the market does a little bit may be cells of -- -- because the market wants Romney they're not gonna get Romney the fiscal cliff is really the big deal the fiscal -- will -- worse if you have a divided Washington remember last summer.
The debt ceiling debate the market fell apart so when you talk -- this being a trade.
I think that's exactly what is it to trade Intel let's say the end of November or something like that until after election for the fiscal -- comes about.
Then I think we have hot water.
That stuff.
-- certainly is there a sector that looks like it's going to really propelled the S&P more.
It really depends on again how you look at it what you time from his.
If you said you know I think that Obama's gonna win the areas actually do the best under that scenario.
Are companies that are leveraged to interestingly the low -- consumer who tends to do better under.
The president also infrastructure -- projects that could be people put up you know everything from telephone poles to roads.
I'm and that things that benefit from Obama -- If you get a Romney win it's anything that has the burden of regulation banks being a big one.
But then you have other areas of the economy coal utilities.
Energy things of that nature.
Jonathan Golub UBS equity strategist thank you so much of being different I've seen 25.
On the S&P.
By the end of the year --
