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Generalize that we now -- to the markets for a moment.
And bring in now Bob doll who says he's a hard time coming up at any scenario.
-- bonds are gonna outperform stocks Bob is now the chief equity strategist at -- asset management and he joins us now it's always good to see if the Bob and you know it's interest thing is just -- end of the year we try to get a big picture.
View of what's going on in the world let's start there you so much you're fairly optimistic about the stock market explain to us why.
PI it sounds I think the asset choice by default almost let -- cash or zero last I checked on -- return basis.
And if you're of the view that the world is okay and gonna grow a little bit.
And that financial problems are going to continue slowly to receive that's hard.
Environment to see bonds doing really well from these very low interest rates and so I back into equities is the S and a choice a little bit of earnings growth.
Maybe a little bit of multiple improvement and that should be the one that beat bonds.
Where's the economic growth gonna come from because whatever they do in Washington and it won't be.
Something its expansionary and -- of its I mean there's going to be some drag on the economy from the cuts in spending you would think in the higher taxes just -- matter how much right with the economic growth.
But it come from the might might drive the stock market helped him.
They are our guess is that fiscal cliff and nothing done as a minus four to GDP.
Probably they end up doing something that makes it minus one and a half and so we have to overcome that.
Confidence alone will be part of the story.
As you well know lots of CEOs and CFOs and individuals.
Are sitting on a lot of cash -- they just don't know the rules of the road.
And when they get the rules there are more likely to be able to plan their future.
And that might I have somebody higher worker expand the plant somewhere try to find a new product and maybe we have little to growth.
It brings up an interesting question what we're gonna talk about this -- somebody little bit.
Later on in the hour and -- -- more detail but there's a case to be made that some have made dedicates better to have a good deal.
Or or I'm sorry it's better to have no deal at all -- have a bad deal that's org about later but it sounds like maybe you think the opposite me how do you view that as -- best just get this out of the way -- some sort of the deal in place and move on what do we have to be careful about what they actually come up with -- washing.
And will the fine print does matter no question about it but I come back to Simpson -- for example in wasn't perfect.
But I would argue was better than the nothing we've had since Simpson Bowles was -- some sort of looking at it this -- at this way.
If the Republicans and the Democrats are gonna agree they're both gonna compromise and get some of what they want so.
We may not get a perfect deal but I would still argue probably most deals they come out with -- -- better than no -- -- get enough to get to see again Bob -- thanks a lot.
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