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Fed Policies Forcing Investors Into Stocks?

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    32 Advisors CEO Robert Wolf on the outlook for the markets and economy.

  • Duration 4:43
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The Dow hitting yet another record today the big question now is can this rally last we know a lot of you've asked -- if you were afraid to put up money and that.

Now you're wondering should I would joining us now -- -- Fox Business exclusive is one of Wall Street's better known names Robert wolf.

32 advisors founder and vice President Obama and former head of UBS Americas it started as a bond trader Solomon yes I don't million years ago you had seen it all without -- get right to the question here.

-- excited where you buy the record yesterday another climb today.

Those are great things I mean.

Where consumer driven country we have a lot of people vested in the marketplace whether it's individuals or pensions so as the market goes up that's good for the entire country do you think it continues to go higher.

I do but not nicely because I think equities have a lot of value I think that.

The way the Fed is positioned -- quantitative easing in the zero rate policy.

They're forcing investors into the market so you're saying that's the reality folks you may not there like it it may not last but for now what's the reality so until they pull that.

Punch bowl away or the rug out from people street.

I think that is one part of the -- the second part is.

Companies and not growing organically to the point they want to so they are now acquisitive we're seeing -- very high acquisition pipeline.

We're seeing things both cross border and in domestic and so I think from that perspective whenever you have.

Acquisitions.

You know you're gonna see equity markets go up as well you if you -- -- splitting the calendar into two pieces first half second half.

Yes housing still looks good but you say at the second half we might see a little bit of I guess plateauing -- destabilization.

You know.

The first half I like because I think housing continues to do better and it's still everyone's biggest asset.

I think because of the Fed what I mentioned because of acquisitions but I am nervous about the sequester.

I think it's slows down the economy in the second half what you saw the Fed Beige Book today they already said that psychologically it's affecting companies their -- to -- can't -- out but -- -- there's always going to be a problem.

But but I think this -- -- -- us in the CDO which is neutral it's not it's a bipartisan congressional budget on national budget office has said that this wolf.

Hit the job market by 750000.

Jobs in the second half of the year that is a huge number.

And so I know that people saying well you know the president's scaring people scared -- -- they're saying that this won't come to fruition.

But those numbers don't lie and also Bernanke okay it was very clear this would probably I think he -- six tenths of -- percent on GDP it would it.

So these are real numbers and on the numbers junkie -- the numbers don't lie I hope they are lying but.

So I would say the second half the I'm nervous so must we can have.

Figure out how to get this whole deficit.

Discussion straight while you are an outside advisor to President Obama.

They're supposed to be having dinner tonight -- sire traded -- -- and there are some some coming together moments here between the president and some of the senators -- president I know congress I know we reached out to some Republican senators since last week.

You know I liked what he put on the table in December this is not an advertisement that's on their website it was at four point three trillion.

It was about two and a half to one spending to revenues.

That seems to be and maybe even a little higher it was about self remember for everyone thinks about we've done 600 billion of revenues.

We've done about one point eight in spending so we have another one and a half to go I think revenues need to be on the table I'm not for higher tax rate yeah.

Overall I'm not to -- tac -- the country has to run but the Republicans gave in around the fiscal cliff isn't it really time.

Tips to share that balance on behalf of the Democrats in the price of.

But wait a second if the goal is four point three trillion which everyone -- And we say to you one point two trillion.

Okay is revenues.

And three trillion plus this spending cuts people would say that's a fair deal.

OK that's the deal that's on the table that I think makes sense and it includes some entitlement reform whether it's chains chain link CPI.

Or some of the Medicare cuts so listen it's not perfect.

But I think it's a lot better than where we are what the sequester I think the sequester was too blunt of an instrument I'm not happy with that.

I think that this country in the second half the year we'll start feeling the pain.

Robert wolf of 32 -- did you miss being on Wall Street you know about you know what that correct or you know what it's nice actually -- Wall Street -- my client to a very choppy on the other side the other side of that Robert wolf of 32 advisors former head of UBS Americas David also at a back to you are.

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