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Artio Global Investors Deputy CIO Brett Gallagher on how the economic outlook impacts investors’ strategies.
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Well -- stocks trade near five year highs the big question for many investors is whether it'd take some money off the table.
We've for a pullback at this point Brett Gallagher RTO global investors deputy CAS's don't expect the relief -- investors are gonna become increasingly unhappy.
With the fiscal the Eleanor Daley surprised respondent about investments right now Britain has been on a Fox Business it's close though it's already on its only Monday we look at Italy -- out.
-- -- -- okay now we come yeah I think when people really step back and take a look you're gonna find that that they're just isn't a lot of there there that the hurdle.
Has been lowered so far -- it's the only reason for the for the relief rally we've had.
Deficits are still going to be running in over trillion dollars a year and -- far out as we can see in and that even understates it because they.
The government is you know accounts on -- cash and cash out basis they don't use.
The gap accrual accounting that corporations are required to use some and they -- initiated what will was -- Jim.
Yet but let me ask you doesn't mean if you look at I -- wanna go to market for a -- if you look at the SP 500 we can with -- highs disappear by front of the markets.
Rejoiced last week after -- the fiscal -- deal was cemented.
For tier three months at least anyway -- even if you look at the overall the fiscal situation for the year for the US economy GDP at 2% for instance.
Do you turn away from the US markets as -- faster.
Yeah I think he did I did DUS a -- a market is we're not really reflected the economy were back toward the 99 and 2007 highs but the economy itself is not back near its size income is slow and and whatnot.
You looking Europe where a lot of people are still skeptical the news headlines are going to be negative they're gonna continue to be negative sure.
That market is significantly lower than it has been at it I think it's -- like you're economy the deal like Eric -- are you -- you're gonna find your spots.
I'm but I think the European market has a lot more value than the US market.
So this is almost bottom fishing in the US and that he's he's in the European market getting -- Europe had a pretty good last half of last year but we still think that there are some values to be.
At what about Asia -- allegations side of things I mean whether it's China whether it's Japan.
Some say the Chinese economy is gonna read on the -- the worst is over what he's well China's.
Like any idea ever -- beginning of last year remember everybody is worried about it because it was overheating is that they sold off the market then came back.
By the end of the year was a hard landing everyone was worried about it sold off now it's not hard landing so it's coming back a bit.
China over the long term is going to do fine.
What about Japan Japan though we have some issues too big problems debt demographics the economy.
-- of -- an individual doing business in Japan you've got your customers.
The Japanese market it actually performed rather well in particular the second half of 2012.
You.
If you're not convinced by not convince I think the reason it did was because of some of the perceptions -- quantitative easing was gonna make an appearance in Japan -- the new prime minister has been pushing for new higher inflation target.
Have a strong arming the Central Bank there.
Who and we saw the kind of reaction that we will get when the US is doing Q year when the Europeans -- -- a higher stock market but a weaker currency.
And I think that that probably will continue a little bit but the fundamentals underpinning that just aren't there shrinking economy.
The highest debt in the industrialized world way beyond where Greece's.
And.
Some said the United States is heading that way via Japan via Greece as while -- up.
Isn't it pretty -- Gallagher thank you very much like saving on the show -- Gallagher march you know global investors.
