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Steve Wood, Russell Investments chief market strategist, weighs in on the jobs data and markets.
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It's a stock's down erasing earlier gains as -- just mentioned from Matt well better than expected jobs report so what else can we expect as we head through -- selection.
Joining us now Steve wood chief market strategist with Russell investments.
Steve what are talk about the jobs -- a little bit with Gerri Willis let's talk about the market in the economy and how sandy plays -- -- sandy please into all this because look.
Power out you can't make products people aren't gonna have stuff on the shelves there's no food was -- -- the economy.
We're sure it's gonna be yet another headwind so we've got a lot of headwinds coming into the fiscal cliff.
We've got uncertainty around the election I would argue.
Actually that we felt a lot of the bad effects of the fiscal cliff all those business decisions -- hiring decisions that were not made in the second and third quarter.
Are not going to be -- going between thirteen -- but you're already seeing it.
Don't need to wait for the day after Election Day and -- and he's just gonna add to that so you we're gonna see an economic impact.
We don't know yet but it's going to be -- -- certainly.
Talking about the day -- -- the elections stayed so what does the market do.
If the president is reelected -- Mitt Romney wins have you see each playing out.
Or right now looks like we've got -- neck and neck yeah so the question is does this tie go to the challenger does not -- go to the incumbent and and -- -- I think ultimately you know what I don't like talking politics -- like talking policy IQ and told -- people the market has priced in a reelection win for President Obama you agree with.
I'm not I'm not quite sure that I agree that what I do agree with though is is that the next president whoever is going to be is going to be very constrained there's going to be what we call the tyranny of the arithmetic.
-- whoever takes the other -- -- box in January is gonna have very limited degrees of freedom.
And our our hope if not next.
Dictation is that the next president can work in a bipartisan.
Because you can't have these neck and neck finishes where one side barely wins and then has had -- two years -- -- so we he had a bipartisan equilibrium that both sides can agree on.
Create a stable policy environment then investors than taxpayers of business people than they can make those long term decisions and that I think would be of a big kick start.
To the the the economy to the markets and we've seen we've noticed.
There's Simpson -- as the -- -- there are a lot of blueprints other that make a lot of sense a lot of people so hopefully we can make some progress.
But that could also be a pipe dream right and then we are in complete stagnation for right attitude next two years what does that do I mean you this stock market.
Well you you want clarity so let's say if it is isn't Obama victory yet are you would say that the -- the -- and health care for example would be more clear winners and losers will be more.
Easy to identify a bit of -- Romney were to when you might say that in in financial space and other areas of the market.
That might be a little bit -- I think you can pick winners and losers.
Under both scenarios.
But still you get back to the fact that -- Europe is in a significant policy driven problem so they've got self inflicted wounds in Europe.
Hopefully we can take their example and of what we've got some time United States you'll be difficult decisions but -- made significantly.
And I think the markets will shake out and but you do what consistency what that long term horizon to speak to extend up to commit these capital allocation to -- Well we don't have that much time -- -- -- fiscal cliff is getting closer and closer and base -- on patents in the congressional elections.
Could point the way to more stalemate to more indecision chemicals for the markets -- the worst possible -- -- True and and -- we've got to ask how much of this political posturing going into the election.
And then you're gonna get some backroom dealing.
After the election.
I think that the the congress is gonna have to deal with spending first then tax cuts second because tax cuts could be made retroactive so -- President Obama around -- could come in April may June whatever.
And just make those retro active -- lot of work for -- but the spending cuts take -- a note January 1 to the probably do it in that sequence and they really got to get on this because.
Estimates have three and a half to 4% of GDP to be knocked off if everything expires at the same time you look at the numbers were only dealing with a one point 92% of GDP I'm not a genius maybe but -- -- -- trying to.
Therefore until you got a negative number I'm willing to think that's a recessionary environment so they need to get on that frequently.
-- -- -- Only we can believe they would C -- -- Russell investments thank you says thank you -- all right well while the northeast is consumed with the recovering from same vehicles.
President Obama Mitt Romney on the battleground blitz is a campaign hard for the state state still up for grabs ahead of Tuesday's election.
Today Mitt Romney visited Wisconsin -- President Obama well yep in Ohio.
Early voting well on the -- in -- --
