Also in this playlist...
This transcript is automatically generated
My next guest says there's a disconnect between Wall Street and main street despite encouraging economic reports.
Joining us with his -- the outlook for the markets is mark.
Bush Cheney and he is chief investment strategist for Janney Montgomery Scott today here thanks Lou -- to records that are robots kind of impressive stop I guess resolve this kind of take a deep breath and relax now on -- the good times roll.
Much about relaxing I think there's enough complacency in the market we could see that Vicks index which is -- near all time lows but.
In fact the matter is which ended at the same time be worried just because we're hitting headlines a new all time highs that necessarily the rally in stocks is over.
That therefore do you think this market is taking us from here -- -- Whose lofty heights -- are we going to see.
A build here over the course of the next year.
I think you can't see that I think we're probably overdue for a correction in the equity markets it might be something on the order of three to 5% that would be my best guesstimate them.
I don't think that would necessarily be life threatening you know solemnly calculate this -- carefully just about 9% gain.
I in two months and we have to give back three to 5% of of that we could move law.
I'd say that's a great trade.
I think you would be especially if you look at over the course of the remainder of the year one in which we think economic growth improves in the second half of 2013.
And I think that's a fertile climate for corporate profits to continue to grow and as a consequence we look for equity prices to finish higher yet even from today's levels.
And better from what could be a corrective phase which I think would be opportunistic for investors who are sidelined.
To come into.
And and you think everyone should everyone but most investors should take any sell -- as an opportunity there.
To get into this bull market that is found its fourth year.
I do know I I think for investors who are waiting for the always clear sign to come on they're going to be waiting a long time I don't think that there's anything out there necessarily at the moment that seems obvious relative to why.
We would see some type of -- in the equity markets such they would it would be warranted for sitting and 0% yielding cash for the next couple of years.
-- -- -- for a character -- correct on but as march 10 -- active -- -- days from now.
But we're -- in the fifth year of this bull market.
And you think it can run for for another year.
Well I mean you look at the fundamentals and you have price to earnings ratio of valuations.
Not fair not dirt cheap certainly not exceedingly -- You have economic underpinnings that are starting -- show some signs of improvement.
We're looking for -- capital spending revival housing recovery to continue and consumption driven by.
A modest level of job growth coupled with increasing confidence among consumers to continue to drive spending which is we all know.
-- -- percent of economic activity if you put those three things together.
That's suggested again corporate profits and companies that are great shape with over -- one and a half trillion dollars in cash he continued to show.
Good -- the life and as a result I think share prices -- reflect that accordingly.
But we're not going to get fiscal policy that role open up via the coffers of corporate America and have them get involved in capex and business investment.
So what's going to drive employment here if anything or corporate we're out of time these farmers who quickly about jobs because no one else in -- -- talk about.
Well I think you're right we're not gonna -- fiscal cooperation but if we stopped eating intervention by fiscal authorities I think business is ultimately have to invest and what's going to create jobs is the inevitable which is global growth demanding investment in spending and hiring.
By businesses in order continue to participate in that produce profits for the shareholders.
-- thank you very much for -- thank Margaret and.
Filter by section