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Right now Wall Street is certainly showing its dissatisfaction with president Obama's reelection -- for more years of gridlock and also.
Rising costs and more regulation -- so vol S&P capital IQ she's equity strategist -- listening here in New York.
Which is exciting and Scott -- united advisors chief market strategist joins me now -- -- deal wanna start with you because you're one of the people that came under this program predicted a Romney rally you were buying into that prayer rally.
Are you one of the guys that selling off right now.
I'm not so much.
Sheryl I'm probably rebalancing more than anything and yeah I I think we would at a Romney rally that frankly could have been sold infected privacy a couple of percent of the outside of Romney -- -- But it just seems odd to me this this selloff being toll it should -- -- attributable to the election because.
Timmy is -- like Connell pointed out last hour I mean I was kind of a known thing I think a lot of the polls show that Obama is gonna -- so.
There's other things at work here is -- it's going on in Europe there's an ECB meeting tomorrow they'll likely get a cut rates -- is Mario Draghi.
Point out this morning to slow -- and Germany is definitely spreading so.
I think there's -- -- is going on I think the election is a way to blame it.
-- of the the election was a known thing we didn't know until last night Scott part of the same time Scott don't know we do not right now wanna take a look at -- S&P in this is of course.
Your area of expertise if you look -- sitting on the S&P 500 right now -- we have not seen levels like this since early June.
And edit and we have to say at this point every sector of the S&P off ten they're down Sam when he sat.
Well I say that I agree that I think the market pretty much knew that the Obama -- gonna get reelected based on.
Action leading up to it in terms of high yielding stocks being beaten up as compare -- low yielding stocks rising in the five weeks ahead.
And I think right now we're gonna go and -- test those levels that we should have tested earlier.
In the sell off that we saw just a few weeks and months ago so maybe the thirteen 75 maybe.
The thirteen seventy level before the market sort of re coops.
Do you -- got that this is as a situation where we're looking at the next a couple of months and are fearful now more than we ever were about.
Gridlock in Washington because that goes into the fiscal -- issue and many are saying now on the street we need to pay attention this and we cannot guarantee they're gonna kick the can and do a deal.
Well it -- -- I think that here is definitely.
Alive and well today but tomorrow it may not be I do think we're probably gonna see a period.
Significant volatility in -- the end of the year but.
Let's face it volatility is also good -- because there's chances to buy in there on the dips and I think that's what people should be doing over the next couple months because.
Sure doesn't gridlock actually sounds pretty good I think the scary thing would have.
Actually did fix -- fixing this fiscal cliff right away because I think that's what you're seeing come out the banks I mean look at Goldman Sachs is Moriarty cutting GDP.
I think that's where you're really -- gonna be concern going forward here.
OK let me bring up one interesting point and this is what history teaches us about this debate in Washington Sam if you look at back look back to what happened in 2011 okay.
And that was the debt ceiling debate they they can look -- a super committee great that's super committee.
And then when that failure happened we saw the S&P down 17%.
To 25 trading days she -- To the S and here facing -- again.
I think that there's a possibility that we could be seen much more of a sell off so far.
I'm calling this a Truman -- redo.
Because back in 1948.
We saw -- S&P declined more than 10% in the month of November.
And we ended up recovering a little bit in December and then we were up more than 10% let's call in numbers they cannot go so far right now also -- -- in the numbers right now yell but I think that what we have to do we have to -- -- out we have to see whether congress does actually let logic dictate and that they come to some sort of compromise.
I can't let you leave it up talking about financials right now curious how your facts about -- that's one of the biggest losing sectors that we're seeing today is the call is -- taken the Dow down -- gonna stick with your financial Beck's.
You know you're still my friend jokers you try to get me on this show audited financials and I do not like financials I think that model it is still early -- that I would run for the -- when it comes up financials and utilities and pharma I like China tricky though that -- -- fun of having you on the show for me -- All right now what about you publicly that that -- that you like right now particular health care that.
As one of the of the big sectors are watching yesterday -- -- health -- been doing relatively well we're seeing a little bit of an improvement with the other big pharma companies and I think most people are breathing a sigh of relief.
-- president Romney will not be trying to unscramble the health care egg.
And so now just leave it alone has good defensive qualities.
And -- undervalued compared with history.
Sandstone all nice to -- -- New York -- -- -- -- -- -- with the nor'easter later on this afternoon so enjoy that of course got -- unbreakable Scott -- we'll see you soon.
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