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Guggenheim Partners CIO Scott Minerd weighs in on the jobs numbers in January and where to put your money in today's market.
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Thank you Nicole and again those jobs numbers this morning -- Labor Department saying a 157000.
Jobs were created in January just shy of expectations.
The unemployment rate ticking up unexpectedly to seven point 9%.
But that was enough to push the Dow over 141000.
Scott minor.
Its chief investment officer gave its partners -- -- more than a 160 billion dollars under management Scott what do you make of these job numbers yeah not bad not.
But not great.
Why you know today and I gotta say I I think there's a lot of positive -- these numbers you know I've been pretty bullish on employment for the last few years.
You know what the big thing here that that I think everybody's ignoring -- -- when you look at private sector growth.
It we've been averaging you know around 200000.
Jobs a month and all the drag on these numbers -- keeps pulling them down.
To you know like a 150.
-- is really the result of the size of government shrinking.
And inadvertently I think the policy makers in Washington are giving us exactly what's good for the economy.
And that is their -- their stare on a diet while the private sector continues to grow.
And you know when you compare us to the last expansion.
There were about a 150000.
Private sector jobs added per -- Month in the last expansion in this expansion there have been around 200000.
So you know I believe it or not -- Washington may be helping us here.
Well if times are so great that have been Scott why is the ten year treasuries still below 2% on the yield why has -- The -- bond bear market showed up yet what's your -- for last march.
Well.
You're you're right and I if you have but I got to tell you that it's has probably more to do with the craziness of central bankers.
Than anything else in I was just involve us.
-- last week and you know we spent a lot of time.
Talking about you know the the monetary policy what's going on.
And how unorthodox the solace.
And you know the the the thing that I I said to Mark Carney who's -- -- be the Bank of England.
The head of the Bank of England.
Was you know weeks now sale deep into uncharted waters and and acknowledging we don't know how to get home.
We've decided to sell deeper into unchartered waters.
And you know we are setting ourselves up for major problems.
The fact that the Fed continues to keep interest rates this slow especially.
You know when I can point to lots of rosy things in the economy.
I think is gonna have some pretty bad long term adverse effects -- -- when you start placing bets on those long term adverse effects do you start shorting treasuries at this point what do you want to what don't you what do you wanna sell.
Right well I mean at this stage you know date -- you know I started shorting treasuries last march it's been a pretty.
I'm group on fulfilling that demand hasn't hurt as much but it's not been good.
But you know look -- you wanna go.
Gold.
Some place to store value.
-- which I've talked about in the past which is not accessible to everybody but it is still ultra high net worth people.
Stocks for the time being our great place to be especially I think in Europe where there there'd been battered and and the ECB is just getting started at the at the party that we've been on the for the last three years.
And Japanese stocks for instance look very very attractive so there are a lot of opportunities out there -- I would stay away from treasury securities.
And you know allocate my money toward risk assets and I think the party you'll go on for two or three more years before they realize that they have to take the -- And then -- hang ever lasts for a decade Scott it was great to save forty niners -- -- they want.
Well who are you going forward -- welcome here to take other side of that ravens'.
None of -- probably more of an expert that I am and I -- what what's carnal side for the that is all my god I'm so we never ray the forty equivalent -- I think that didn't after he.
Thought I was I don't I don't like about the -- -- hard -- doctors in this this hot hot and you wish effectiveness look at.
Scott thank he's got mine -- you and Guggenheim partners be well our.
