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John Thomas Financial Chief Market Analyst Wayne Kaufman on the outlook for the U.S. and Japanese markets.
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-- this -- says it can happen sooner than you think joining me now Wayne Kaufman chief market analyst for John Thomas financial.
Okay let's talk to you about Japan because I saw a headline today.
That just blew me away.
So the economic policy minister there today said we'll probably yesterday says he wants the Nikkei two jumped 17% by march 31 2013.
Gotta go up wanted to go up went to go up 17%.
How does he propose doing them.
Well he's doing the same policies that we're doing over here quantitative easing and and that type -- thing but purchasing assets.
And if if it does go up there that'll be a 53%.
Increase from October so that's pretty amazing.
So the government just like here.
Is get a sponsor.
A stock market rise.
And you've got to think that every central banker at throughout the world is gonna do the same thing -- we just go out and mildly stock indexes is that the answer for that is woman.
Actually assets and and I been bullish on the market.
For a long time because of the global -- -- program of buying assets as Central Bank that's my question.
That's a good question.
It's it's starting to get a little extended just like us but only if the gut you know they say don't fight the Fed.
They say don't fight and there's a reason for that quite so don't how I wanna go all goes well let me go on for a long time until it cracks you know earnings Hemingway look cracks and crashes and we're all crying in their -- Ernest Hemingway had a great expression he says that -- -- goes broke slowly.
Then all at once.
And that's what happens with -- in crisis it builds and builds and then nobody notices and then boom which was the housing crisis.
So similar -- but they can make the markets go up.
Don't fight the Fed don't fight the Bank of Japan.
-- okay.
So that's what we're relying on here that's what we got folks -- just all we -- of the central bankers nothing else works anymore.
At a much of the central bankers were called out -- later I mean yeah our stock market's been -- but what about our economy and that hasn't shown I have this discussion.
A lot of people that the market is not the economy and -- are still a lot of problems with the economy.
But you know my job is to guide investors what they should do and right now there's no sellers.
We do have a slowly improving economy it's too slow but it is improving.
Valuations are very good even maybe it's being -- by the Fed but valuations are good previous composite.
News here okay I'm making fun of the Fed not making fun of the Bank of Japan but in reality we have a positive earnings seasons and going on 71%.
For the US companies public companies have reported the majority are beating expectations that's that's good news.
We like to see that that's that's really what should be pushing this market -- even though it's getting a little help from other folks.
Well and that is because based on the good earnings and it's a terrific earning season.
Much better than people forecast way back in December when we -- worried about.
-- onto the the debt ceiling in the fiscal cliff so.
Earnings are going up and that is helping and that's what valuations are still very good.
Concern about your favorite sectors like financials consumer health care.
The and you know last year I was Thomas that I like financials a lot and lot of people said no they're not gonna repeat.
Two years in a row as the top sector.
And they aren't and these stocks can continue going higher because they have tremendous earnings power and a lot of them own portfolios of assets that are.
Getting pushed up in the market so.
It's a good place to -- OK Wayne.
We're gonna hold -- -- that is okay Howard I want to those sectors and see if they do what you said space for coming -- it's great to talk very really appreciate your time.
