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-- from reason if you think all this set fiscal cliff nonsense we'll just -- the stock market Brian Jacobson is here now to say.
Not think -- energy portfolio strategist at Wells Fargo from Milwaukee today you're pretty optimistic right no matter what.
Well I am I don't wanna see no matter what because there are obviously some things that could happen that would probably.
DC we're probably gonna see a little bit of economic rate that's probably already priced into the markets and so if you look ahead 82 quarters three quarters down the road.
I think the economy's gonna begin to accelerate and that could actually -- drive a little bit more investor optimism which -- could push a stock prices higher let me.
Tell -- talk a little bit about the the possible scenarios here because everybody's focused on the idea of what happens if they don't get a deal.
But even if they did get a deal it's not gonna be expansionary.
By nature mean they're gonna cut spending humanist just to make those assumptions be did so there's -- -- be a lower level.
Of government spending or at least it won't increase as much and they're going to be higher taxes in just a matter of how much and whose taxes go up so neither one of those things should help.
Stocks so why is the environment so favorable.
-- -- -- then that's a very good point and it's every ninety it's a scenario a lot of times you know when you exercise they say no pain no gain or no gain without the -- this is just all pain without any -- that we're getting here with coming out of Washington DC so -- but that's why I think that if you look at forward earnings let's say the way that the market is trading it's -- somewhat at depressed levels -- almost at recessionary territory when you look at some of the multiples.
On the market as far as what's next year's earnings so.
A lot of that I think a lot of that pessimism a lot of that pain is already priced and so it's not necessarily going to be good for the economy but it doesn't necessarily mean that it's going to be bad for the markets there is a little bit of a disconnect.
There you know the recipe or close the market's been up and down today but -- it's I'm I'm kind of -- -- -- talk about.
But pessimism -- -- you're having a little bit of a longer term -- conversation because.
As we've reported a couple times today believe the S&P 500 may do something it hasn't done for six years it's up -- it could be up today.
47 consecutive session did last time would be October of 06 so.
That's horribly put that doesn't sound like much pessimism but -- -- No it doesn't sound like a lot of pessimism but compare where we were a few months ago.
Hey if you think about where we are now around 1420 and the S&P 500 we should be probably closer to about 1505 on the S&P 500 a while -- let's let's say back in September it was looking like we're gonna go up to 1450 if not to 1475.
So putting it in that longer term context we should be a lot higher than what we are right now.
All right and in particular the -- -- -- -- and and and the types of stocks you like to end up not that young what I think will.
I think that it makes a lot of sense to be globally diversified in -- -- in this type of environment there's a lot of things going on politically in the United States that could create some hiccups in the markets.
On the but if you think about the where a lot of the opportunities are it does look like it's with those companies that are based in the U last but are globally focused.
A lot of those are gonna come from the information technology area perhaps a little bit in the consumer Staples.
Also on energy and health care bills -- some of my favorite sectors for 2013.
Brian -- -- we always like having on thanks for joining us today.
Thank you Brian Jacobson Wells Fargo speaker.