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We'll stop doing getting clobbered down almost 10% since Election Day fiscal clip phobia is -- -- took time to sellable.
John lake it's a leader capital says the clip.
Is a non event and he still believes a big bull run is on the way joins us now from Portland.
Hey John explain yourself sir.
Hey guess thanks for having me on look the the fiscal cliff is a non event.
You know I've I've heard a lot of pandering look let me just put -- real simple if it ain't broke don't fix -- And the reality is that is raising the debt ceiling and -- and keeping tax rates low is stimulus -- to the system.
We do we just looked at Europe for their austerity program it's not work and I don't think we're gonna go that way I think it's really simple we're gonna raise the debt ceiling most the tax increases are are not gonna happen we're gonna.
Bring keep things the way they are we may increase Medicare.
Four you know folks make over 250000 otherwise if it ain't broke don't fix that can effectively in the system.
And so I think it's a non event I think -- -- -- bull market and you buy the dip here.
All right so that's the government and acknowledge that a business reason you would come on our show on April and -- -- I'll bet you within a year corporate bonds.
Are able to get away the -- -- even lower interest rate -- government bonds because people think corporates are a better risk.
That is now happening right and that means a bonus for the bottom line.
Big bonus for the bottom line look at what's more important than that corporations.
Our refinancing five and ten years down the road so it's not just.
The role -- money one year there there they have permanent financing in place an extremely cheap rates thirty year lows.
That we'll have almost 310320.
Billion on -- go forward basis to earnings in our view.
We we refinanced almost ten trillion globally in the last three years look for that to continue and by the way.
As we increase the the debt ceiling look for treasuries to sell off demonstrator rates go up but but corporate rates will stay low there a better -- than any government out there so we okay that.
Corporations are set to go -- We just showed a chart looking back to a very interesting plateau before the 82 bull run really began its rather similar to a plateau now right tells about that.
Correct I think that we're look at that and 822.
2000 run here.
Which in that that time period the S&P 500 went on went up almost 15180%.
I think we're looking at a very similar pattern matter -- -- could even go beyond that.
So I think that dumb you know you wanna buy the dips here but I will say this bomb from an interest rates -- what I do you think interest rates go up.
You know we run a short term bond fund Dennis you -- -- keep money in the short end of the curve by short term bond funds but.
Get exposure to the large caps stuff here because it's definitely get ready to take up we are notable marker right now you just don't know what our -- that little bit of hope there today John -- yes good we can tea.
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