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I am going to earnings even -- in both doing this week our next guest says results could provide a base for the market to move higher especially because expectations are so darn low.
Joining us now -- out Wells Fargo advantage funds senior portfolio manager.
You know yeah earnings are low but.
That doesn't bode well for what we're gonna here -- these companies does it.
Well I think some companies have done some pre announcements.
Where they're expecting their growth to slow down because we should have some pretty low GDP growth for the next several months because of all the uncertainty.
However out most companies have high cash flow.
And I wouldn't be surprised to see some companies actually.
I have some straws in the wind does say that -- gross might pick up.
Or as a go for -- -- year end with expectations so low I think that might be enough to -- -- base to have stocks move higher especially when treasuries are anchored so near zero.
Because all I have to say that there outlook has stabilized fitting I have to say it's getting better right they just have to say it is like on status while and that's good enough for the market to run.
Yes I think so and when you look at stocks in general.
The cash flow is so high so far above the yields of treasuries even competitive with high yield bonds.
Dividends are also rising it really says that -- we may have a little correction in the first quarter but stocks I think will really be the best asset class this year.
You know we just saw eighteen billion dollars -- to stock mutual funds and exchange traded funds for the week ended Wednesday.
Do you think this is like your typical all everyone got a little extra money at -- miss the January effect kind of thing or is this -- of a trend this movement into equities.
I think it's the beginning of the trend that I think it'll be slow and uncertain have some tradeoffs back and forth.
Especially when you look at last year in 2012.
Many parts of the bond market high yield bonds long term investment grade bonds did just as well as equities so there's no rush.
Until we get into this year when I think you'll see much lower bond returns Margie Patel thank you -- actually to cut this year we have some breaking news.
Thank you Martin takes it.
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