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Despite the better than expected GDP number that came out this morning my next guest is still expecting a pullback in the markets.
Although today's number -- -- -- opinion a bit.
He says the market some of rallied well beyond where they deserve to be -- -- Eric storm remark trust wealth management investment advisor joining us in a Fox Business exclusive.
Eric has six billion in assets under management so.
Between yesterday and this morning where were you yesterday on your estimates of how much we would pull back.
Well remember that we've already had roughly a 4% pullback in the S&P 500 for the hype -- started talk publicly talking about a five to 10% pullback.
Some weeks ago and that's starting to happen now the GDP numbers interest thing because it surprised some folks on the upside there -- a lot of investors.
Whether you heard about it or not that we're expecting possibly that number to be much weaker and the fact that it wasn't.
Is very good news for the markets every data point matters at this point.
Keep in mind the markets have really rallied sharply as of the end of the third quarter the S&P 500 was up 30% for the previous twelve months -- a huge run up.
And expectations of the economy improving so if that improvement doesn't start to happen there's no reason stock should be trading at these levels but.
Data like today.
Good first up bites that you tempered your outlook a -- did you not mean he would -- that we see another 10% which is correction territory here well you know that five to 10% total range is a still a possibility but again.
We're hoping it doesn't go as bad as 10% and with good news like this 2% GDP growth is not great but it's certainly not terrible either and that's a sustainable kind of a number.
To get us through and -- -- some more time.
For some of the Fed stimulus start to working out.
This rally over the past year or three quarters of the year has been the most hated -- and most.
-- believed rally ever and yet you you're in that camp where you say the markets aren't where they deserve to be they should be lower.
But American -- and people like you they are where they are right I mean the -- is a gigantic voting machine and right now where they are is the reality of -- so if you continue to believe.
Well they don't deserve to be there but yes they -- Well the markets are always right.
And the market is also the ultimate leading indicator so what the market's telling us is with a good run up like this that the economic data will follow.
And so as long as the economic data does fall out.
The markets deserve to be where they are if the economy does not grow as expected if the data points and housing and unemployment.
Don't pan out the market will pull back and that's what we're watching very closely now but -- like this that we've seen today as it is a very good first.
You heard but Teddy Weisberg said said that if Romney -- the market goes up if Obama wins again that -- the market 'cause step.
Does anybody really know what's going to happen at and I guess to that end.
I get more people saying what -- the market's going to do after the election.
Right if anything I think it goes up either way but -- -- -- -- strange thing to say.
But the markets hate uncertainty and in the weeks leading up to an election there's a lot of uncertainty about who the winner ends up being.
Once someone selected.
And it -- it's all over the world that uncertainty is removed and removing an uncertainty.
Generally is cause for market to go up now that doesn't say the market -- go up you know for the next six months after that.
It just says the initial reaction could be a positive move because -- removed.
And uncertainty and the markets tend to love when that happens you've removed a gigantic question mark okay.
-- is coming back he's got some names he really --
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