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Will 2013 Be the Year of U.S. Equities?

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    Cantor Fitzgerald co-CEO Shawn Matthews on the outlook for stocks in the year ahead.

  • Duration 5:58
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-- 2012 be remembered as the year of flight to safety and somebody if you went into treasuries were so scared right.

Well -- so will 2013 be -- -- that retail investors finally returned to the equity markets taking some cash off the sidelines.

That's how -- -- Cantor Fitzgerald and company CEO sees it -- joining us now Fox Business exclusive.

Which is big 2013.

Outlook you guys are appropriate financial services this is all you think about absolutely.

What's your outlook for 23 I think equities -- do need to 10% return with -- low.

Inflationary.

Low interest rate requirements actually -- very good return.

Less than last this year that would mean we've actually up about 1617%.

Her I think 6070% mr.

Obama an -- -- back to more normalized -- 8% is actually still a very good number I think you're gonna have to look at the treasury Americans are to be concerned about that it's at the end of next year okay.

-- should tell me the signs of stress.

Once -- -- XYZ you'll start to be concerned about it which we be looking for what I think if that is the that is actually started to demonstrate that.

If the unemployment rate start to get with a six handle that time you have to really start to look at.

The curve probably start to steepen out you'll start to see people sell the long -- divorce -- to see a little bit at the end of this year I think -- -- weave yourself to check -- -- one point 8% but.

But would you set a six handle.

The Fed has set six point 5% they're not gonna -- until they see that so now that becomes a worry want to get to that they'll tighten and that -- clamp down on treasuries or equities you tell me up.

It'll certainly be treasuries first because you've had a lot of people actually get into the asset class because the safety -- -- and say facets of this time.

But when you look at the -- -- -- especially in the long into the treasury curve.

There's a lot of risk out there.

OK so -- their sectors that you particularly like right now that reasonable points to do well.

I think certainly the -- -- fixed interest and a financial Stiller -- performers happy to be good -- -- the mixture is well technology I think big Ito will do pretty well next year.

Certainly from the fixed income side.

I still think you'll have people getting into the mortgage space and outs of experienced high yield still has some return -- because you're talking about 67% return over.

I think the treasury -- certainly going to be a tough -- -- how about house -- house has looked completely cut over the past year that -- currently no not at all I think housing continue to look at its next year remember going back in time in the if you look at when ninety's style economy.

If you took -- 3% returns and housing that's actually the norm.

I'd ever get spoiled by at least 10% returns and over five year period that's not going to happen to bring back in time and you're gonna look at that ask -- questions like used to in the past.

Brace yourselves everybody's -- has a call on Japan if I've heard this wants over ten years I've heard -- them did you say Japan has now poised to do well.

This dog hasn't barked in so long.

I agree would certainly YouTube you're looking at a from the standpoint of global dollars are trying to forgot where they can go and actually get returns I think Japan's an interest in place I think their equity market to do pretty well -- well but that the.

The Nikkei 225 just a very nicely to try to starts in just the past month and if you see this will be looking very good.

Not a bad movie -- the GDP they have not had any growth over the past twenty years it's just been basically flat.

But when you when you look at the new leadership just brand newly elected prime minister she's okay.

It's obvious he's gonna tap the public sector works and start building and doing infrastructure that certainly absolutely the streets of the crystal lawsuit.

Not him and also the start to get in the economy and you're not -- -- significant growth through ever.

Think about it from the 1990s respected US two and a half 3% growth such a pretty good growth.

6% unemployment used to be considered full employment so I think you have to look at imbalances based on those kind of perceptions and I think Japan's gonna do pretty well for the next couple years.

Cut well at you know when you start to look at the exactly what you said investors are looking for that next opportunity and with the yen suddenly weaker against the dollar.

You're seeing a possibility that they can upgrade exports I agree yeah I definitely -- you got the electronics which it goes some of their insurance companies.

I think the financial -- little bit harder because there's still balance sheet issues I think -- the electronics of the technology still supposed to be.

Now -- the Sony home when they can come back any chance that we look at.

A fiscal cliff.

That is that no deal so bad that we get back into recession it modeling matter at all.

I don't think so I think you'll how the deal done this is question of why so.

You've already -- a little been given take over the last couple days they're getting closer to the middle so I think that we will be a deal done.

It never goes in to January it's not going to be adapted to the deal you're at a Christmas party and somebody says.

I'm going all into equities -- 2013.

Your response.

Don't go along with everything -- I think.

-- cover outfit but it again you feel that an eight or 9% return for stocks at 2013 is a real possibility capsule.

Certainly better than a savings account or CD.

That's just debt money isn't a corrected and I think the risk is actually in those assets going forward so that the treasury market was a great place to be for an extended period of time.

I think that run is gonna be over in 2013%.

Essentially -- the second half of -- so you wanna be -- -- -- across Sean.

You know.

Currencies it's it's -- everybody thinks the stock market is huge the bond markets even bigger guess what currencies 34 trillion dollar market short largely unregulated.

Is -- -- currency that you look at and say this is points around.

The dollar's gonna -- OK you look at.

Everything is based around the Euro right now that's if you look at the -- section and rally going very nice and you know the last few weeks certainly has been had a good run here but I think the dollar deal wouldn't go against -- -- -- I think all the peripheral countries.

We'll see volatility associated with them with the you're -- we talk about a few major currencies are gonna dictate what happens to all the other peripherals happy holidays Cynthia all right you guys just got shot back it's at cantor Fitzgerald's outlook for 2013 and a Fox Business -- good to see you have to see you.

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