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Virtually every American and major spending cuts for more on that potential impact at McCaskey managing partner of chop -- investment.
Ed even if we did congress at the lawmakers can't get a deal done now we don't expect that.
That will be -- last -- result of these the bush tax cuts expiring.
Metal last in and around confidence has been hurt.
Businesses have pulled back is the economy going to be a great deal weaker in the new year than most -- -- back.
Yeah I mean I will tell you there's absolutely no way.
That anybody with a straight face and anybody in my business can look their clients in the -- and say.
Things are gonna be better in 2013.
-- there's nothing on the horizon to give you that you know conclusion.
Mean you're going to see higher taxes you see nothing really stimulating the economy at this point this printing of money is not doing thing.
And as a result of that we probably -- going to see a very weak economy may -- a Stuart -- said a little while ago maybe one and a half 2% growth.
For not only -- activity even -- to 2014.
That though if we -- going to change our -- let's do it.
-- and -- big pie in the sky discussion.
We're gonna change our ways and spend less as a nation.
In the short run that will -- -- -- not.
Yes -- over completely mean look we are so -- we're in such bad shape that we have to do something monumental.
To get this country back on the right track.
I mean and I don't you know you certainly not gonna tax your way out of -- you have to find a way to stimulate the economy.
And adding regulation adding taxes is the complete antithesis of what you need to do at this moment.
Mean we all know.
And we talk about all the time the way to stimulate the economy.
Is to find a way to get a better atmosphere in here and and and create business a business environment where people -- -- take some -- people want to hire people and we don't have that you do that by cutting taxes you do that by.
You don't really changing the entire climate in the -- that happens we're not gonna start you know really -- recovery time would.
What do you put your money -- -- -- because if you look at the last year you've had had more than 13% gain on the NASDAQ as the best performing of the three major market gauges.
You've had right outperformance.
Over treasuries in virtually every category -- -- with.
Fixed it with junk bonds are high yield bonds looking like -- in bubble territory in terms of their performance and their valuation.
People are desperate for yield you see that that that's one of the reasons for that jumped out of performance but where do you put your money -- because it's a whole host of asset classes that looked kind of dangerous.
-- there there are a lot of -- classes look dangerous no more no asset class looks more dangerous than long term treasuries because.
There's really very little upside to a treasury bond right now but a lot of downside but interestingly enough.
Stock the stock market is about 20% undervalued based on where it should be.
Based on expected earnings as you know stock prices rise in anticipation of earnings and -- about feel -- around 15% undervalued.
Based on those expected earnings and with interest rates were the rat stock should actually be over -- People don't realize that that the stock market is probably one of the cheapest valuations have been in years.
The reason people aren't investing in it right now on the resort I think a huge move in that market is because of the lack of clarity of future growth and future earnings.
And and -- -- even submit you know one other point that.
Most of our companies derive a lot of their growth from outside of our borders so as long as we have a lot of questions about what's happening in Europe.
And over and Asia you're just gonna start to see this kinda -- just pause and we're gonna wait and see for quite some time until we get some more clarity but stocks -- the cheapest place to be right now.
Ed great -- see it happening there they well thanks to get up -- at the county there we.