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Raymond James Co-Head of Equity Trading Michael Gibbs and Fort Pitt Capital Group CIO Charlie Smith on how concerns over the fiscal cliff are impactin...
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We get we gotta get firmer let's get some market panel -- Charlie Smith he is in fort Pitt capital group that is the principal and CIO there Michael gives.
Is Raymond James co head of equity trading.
Charlie -- -- go to you first on this news from Oracle -- have you heard any thing.
As our CME trader has about apple that they might do the same.
Now I really haven't I I think that's just another indicator that.
Tax law changes -- change -- behavior there's no doubt about its.
Wait a minute you're disagreeing with a great war Buffett.
It's easy to -- on this case that the evidence is pretty clear it's seen very well there's here I had something -- got you know.
So this is China aiming at -- folks have to do something with their money what do you expect to happen with the market.
In the very near term as we approached the end of the year and -- after we have some sort of decision or no decision.
After that after the first of the year.
Well I think will get some sort of a a decision on the cleft between the eighteenth and and -- Christmas.
I guess President Obama is scheduled to go to Hawaii later in the month I think he probably has a deadline before that date but -- I will get some sort of the decision.
I've a feeling that we're gonna go over the -- It it's not going to be the the end of the world for the economy.
I think the business has been talking first for years now couple years now about the need for certainty.
And if this the fact that we do logged off the -- provides a certain amount of certainty for business and it got 500 billion dollar.
Down payment on the deficit and the debt I think is is -- actually a nice piece of certainly for business.
So that they can plan for 2013 and Tony fourteen.
It will mean an exceedingly weak first quarter next year but I think throughout the year economic growth will get stronger well but.
Michael on the other hand sometimes if if if I'm certain that somebody's debt that won't bring it back to life I mean the fact is is that sometimes certainly is not necessarily good news you say that the market is actually set.
For more volatility.
Rather than on on the negative side rather than on the positive side and if we don't if we -- over the fiscal -- you see.
Possibility of of negative figures is as as low as 4% right.
Well now let's put all this in perspective I think what I what I've I've mentioned earlier was the fact that the S and peace.
Is up about 6% since November -- six saying.
And we've run into technical resistance with some of the previous.
-- people mentioned.
And I think the markets -- in a in a period now where it could easily pull back a little bit if you listen -- the rhetoric coming out of Washington.
Yeah we had the everybody gave her drugs soon after the election now they're throwing out their plans you -- Obama last week you had the Republicans -- that today.
They're mile apart.
-- -- -- -- -- -- greatest ventures let me make sure that we get this straight you're you're.
Because I I think I might have misread your notes you're not saying that we're gonna have a contraction of 4% contraction -- the economy you think of 4% pull out in the market.
Oh absolutely not now I'm not I'm not making -- call like silicon after the market could match up that that amount in a worst case scenario if he gets contentious in the next few weeks but unlike the other they think that they will come to an agreement I do think that right now you're saying they're negotiating negotiates negotiating process play out.
And when you have this play out the market that's already run up I think we we can go sideways in trade like we did today today -- disasters.
-- was very light yet we went out on the Lowe's we had some negative economic data points.
And I think that's what we're in for for the very near term until we get some clarity on what happens -- -- Our HR that folks again -- gotta put their money to work here somewhere you think the back -- 2013 will be strong.
What can folks -- today what stocks do you like today that could prosper later on.
Well I think some of the aerospace names have -- that you know air air traffic continues to grow around the world the fleets are old.
Not a replacement cycle is is going strong Boeing just announced that they're gonna take their -- -- on the 787 sit ten aircraft a month by the end of next year and they're well on the way to that.
So I think the aerospace area has that has some upside to that I thinking in Telecom and other wireless growth continues to be very good.
And you you get the bonus of they'd bored half to 5% dividend yield -- so.
Aerospace and Telecom experience that we like Charlie Smith Michael gives gentlemen thank you very much appreciation coming here today as --
