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And there was today and while more than three months of little listens -- in exacting what should investors focus some spring in Scott Wren senior equity strategist with.
Wells Fargo advisors Scott.
-- I was looking at you know -- you think that the markets totally -- the the Fed minutes last week but today Ben Bernanke I think made it very clear.
That they gonna keep printing money.
-- from for the foreseeable future and certainly the markets are responding.
Yeah actually actually I think the market did -- -- I thought for sure Ben Bernanke was going to go I think -- -- set the record state straight because.
You know that's the last thing the Federal Reserve wants to do is to try to do is make the market try to second guess are they gonna keep you know super easy policy are they gonna keep -- -- bonds.
You know what's going to happen so I think today.
That was one of his main goals was to set the record -- make sure that the market knew that you know the Fed's going to be very very easy for a long long time.
So as feel clients and investors out -- you say look focus on the economy and earnings for this year over the -- over the next twelve months what you've -- your -- -- Well I -- yeah I think that that.
You know earnings growth this year is going to be modest when -- climbing out of recessionary whole anymore it'll be maybe 5% something like that so.
You know nothing to write home about but I still think.
In that environment you know that'd -- -- economy's going to continue to recover may we see two and a half percent.
A GDP growth here in the states we're gonna see the global economy kind of role -- In that case if you believe that you need to be looking at stocks that are sensitive to that so the consumer discretionary sector the technology sector materials now those sectors haven't performed very well year to date year to date been pretty defensive which surprises me given.
You -- the move up that we've had the market but I don't think that's going to last all year long.
I think he's certainly wanna take advantage of any kind of pullback that we get I'd love to see you know five rate percent pullback but.
I don't think the sequestration cuts are going to trigger that you know we need some kind -- an event you know maybe something gets a little -- Italy or over here -- But but whatever it is it's not going to be that deep.
And were certainly going to be.
But telling our clients you need to be in here buying we're trying to lay out a plan you'll have.
You -- be looking at some stocks in certain sectors and industry groups that you wanna buy on these pullbacks because.
No pullbacks probably -- last very long yet -- -- you -- your clients get the heck out of bombs.
Well I'd say you know bonds bonds vs stocks your bonds are very expensive -- stocks yeah I don't think rates are gonna shoot up anytime -- -- mean clearly -- bond market has a great bit here the last two days now that's gonna change anytime soon you're inflation's not moving up -- mean core headline CPI PPI in all all below 2% self I don't think bond market.
Yields are gonna move up very quick but but certainly over time.
You know we -- -- be lightening up here on bonds in our interest is in stocks and if I try to look over the over the next 23 years -- -- recession on the horizon and I see stocks outperforming bonds.
Probably in a big time way.
Very good place to finish right -- -- -- with wells --