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-- and he's on track for its -- record close this year our next guest says it could gain another 10% -- -- over.
None as -- is senior economist and market strategist at lord -- Joins us now so -- get there another 10% effort is over 17100.
Hit me it's quite possible I know it sounds like a ridiculous number because we've been languishing below -- highs for so long.
And a lot of people are scared -- the market has made such tremendous gains in relatively short period of time.
But when I look at the valuations and we see that the Federal Reserve is gonna continue to pour liquidity on us.
The 10% actually very easy when you get down with a sharp pencil lawyer a careful computer program to that -- actual numbers we weren't.
Happy with the unemployment report -- and mean it basically was is better than the last one which is where the bar is right now.
Expectations the same going into the summer.
I think expectations.
Are and there's there is two things going on one is that the best expectations awful continued model.
This continued living along in the economy which means that the market is.
Vulnerable to an upside surprise we don't think it's gonna get that.
But it means that the market is pretty well braced for bad news or at least mediocre news.
We're gonna continue to have support for the Federal Reserve and the valuations -- you look at the market relative to history relative to bonds still look.
Attractive but that's actually comforting -- -- -- -- -- -- than the last few August's.
Have really seen the market tumble especially with these debt ceiling debates and things like that so you're saying we're actually positioned to handle whatever Washington throws at us.
Well not everything obvious.
See they -- very good at throwing us -- but what looks like the the Republicans have funded the government through the end of the fiscal year.
The it looks like these manufactured crises which we had in the first quarter have gone away.
-- we're expecting model and mediocrity from Washington from Washington it's it's not exciting it's not positive but it certainly is not the market's worst fears.
Mom it's possible it could -- thrown some a string of bad statistics could bring the market.
To some sort of correction but the fundamentals all look up.
-- god willing everything is somewhat under control that's housing a little bit he seems there are on their road to recovery do you agree.
Why I think it's recovering I.
Think some of the numbers we've been seeing exaggerated into -- the recovery of the speed of the recovery.
Builders have been building that news new construction has been running about twice as fast as -- sales excuse me three times as fast as new sales.
So there's probably going to be some kind of a pause in the new construction.
It's really and kind of a mid term correction.
All we think housing is back but it's going to be a long slow slog -- the bounce off the bottom that some of the headlines suggest seems.
The overall theme right everything is slogging along including the dollar these days what's -- what are your thoughts on where the dollar goes.
I think the dollar can probably make some headway the Japanese course trying very hard to depress the yen relative to the dollar -- every other currency and seem to be succeeding.
The Europeans don't seem to have a new crisis on the horizon but there's always one.
Our guess is that the dollar will make moderate gains against the Euro the yen and -- probably lose a little bit against emerging market currencies.
Over the foreseeable future.
So presuming we muddle along you know -- so many people still on the sidelines let's get them in this market.
I know you say consumer discretionary is industrials and tech over utilities and farm of these days how come.
What we think -- -- the best leverage both in terms of value and in terms of the positive surprise will be.
With the most economically sensitive sectors and that's that's the consumer discretionary over the staples the industrials and the tech.
Over the utilities in the farmer which tend to be places to hide an -- in a bad market.
Known as daddy your lips to God's ears this summer -- -- com Summers are we hope you come back -- that talked as soon.
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