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European Fears’ Impact on U.S. Market Rally

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    LPL Financial chief market strategist Jeff Kleintop gives his outlook for the markets.

  • Duration 3:37
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Let's keep talking about this story could this sacred shocker comes as US markets have been on a record run.

How these new European fears impact the rally let's bring in Jeff client top LPL financial chief market strategist.

He kept -- here you know who thought that a country like with the GDP the size of Vermont.

Could affect some that affect my for -- when I woke up this morning.

-- it's it's just a sign that you -- all it takes is just a little catalyst would have still many factors weighing on the market right we've got high gasoline prices we got slowing earnings growth that fiscal cliff issues.

Now it now adding these are these new Europe concerns -- -- there are ready.

A lot of European concerns already with what's going on in Italy.

And what's going on in France back in a recession in Greece of course.

But this just adds to all of that -- all all it -- as they say is once straw to break the camel's back.

You know we got caught up here in the states -- all the nonsense going on in congress and I think we.

Forgot about Europe for a while it never really went away we just forgot about it -- reminder that it's still here do you worry about contagion.

Two other European countries which could have a greater affect on my for a when -- Sure where the contingent could come through -- it but yeah no matter what happens whether all depositors -- for for this bailout or not.

The collateral damage has already been done with a proposal.

And the concern that maybe other banks in other peripheral countries -- be Greece Portugal heck maybe even Italy or Spain.

DC depositors begin to pull their money out of the banks this is how contagion spreads would know as soon as tomorrow where we get the ECB.

Marginal lending facility data we'll see what the -- some banks have been to say -- I need some money and needs of money they're pulling it out of the ATMs or find out to find that out early tomorrow whether that contagion starting to spread if it is watch out -- that go far -- -- People are nervous already here I mean we know we we can go through a litany of reasons why confidence in our markets is so low to begin within this to certainly doesn't help.

But let's say on the flip side the market does pull back on this buying opportunity right.

I think it is depending on how much it pulls back you know.

The last thirteen of sixteen weeks for the US stock market has been up that's a sweet sixteen talking about this week.

-- we haven't seen fourteen of sixteen weeks since 1989.

So.

Were overdue for a little bit of a pullback.

Like to see a five to 10% pullback that -- presses this rally great one to buy into is we look out maybe to -- later this year or next year or we'll likely see more gains on tap.

So let's -- starts out across savaging myself back into this market when it does pull back a little bit where question and -- looking.

You know some of the best places are home builders they -- -- pretty volatile and you can take a nice on the -- that -- -- theme is going to be one with us for a while.

As that they keeps interest rates -- Manufacturers as well manufacturing activity is booming here in the US that's a big -- And then also you wanna take a look at areas like got the energy Renaissance and in some industries and sectors benefiting from that return the US -- an energy exporter.

The banks you know up.

-- McDonald's has said that Morgan Stanley -- and said they broke the cardinal rule in York when they said Reagan attacks -- deposits.

He just don't do that fix our banking system wouldn't that much better doesn't it.

-- -- does he may see deposits flowing into the US we've seen some flow -- gold even today.

As the universal's safe haven but certainly.

The US -- system looks a lot more attractive given all the capital that backs it up and the fact that we we have a broken those rules we've -- the bondholders rather than that the depositors Jack and god willing we don't break those analyst -- -- -- thank you so much for being with us.

They from me --

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