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Metropolitan areas the Dow on the S&P continued as we told you their record rise today.
My guess as we are in the midst of the greatest monetary experiment -- history.
Because -- well with some central banks and decided to do.
There is simply nowhere for investors to turn -- stocks joining us with his outlook is Peter -- -- global head of institutional equity derivatives.
It Cantor Fitzgerald and it's good to have you with -- -- -- -- -- -- is don't fight the -- is that the deal.
Pregnant quicker Japan I think Iraq Central Bank.
-- right now that is if you look at the S&P 500 the total market cap is around fifteen trillion.
Between the Fed and the DOJ that's not including the BL -- and anything ECB tries to do.
Two trillion dollar a year run rate of new money being printed that's about 14% of the total market value of the SP 500.
-- two things ones with that kind of -- in polls show.
Behind stock parts now.
I I I can't understand where we're not sending more records epic or partly facetious but I really understand how I understand how the bond markets -- Well it's very hard to say I think you -- One of the things -- had that has happened is for example when the BO GB OJ started its last round of easing money flowed into US treasuries are.
And into European sovereigns for example if you look at the Spanish ten year.
It went from 5% to 4% within two months.
So just incredible fund flows into anything considered you'll be asked and you'll be asked if there.
Looking at all the anxiety and concern trepidation that makes up the European Union these days.
For the Euro -- to be holding up as it has I mean we're looking at a Euro that's every bit as strong as it was two years ago three years ago.
You know it's it's really remarkable time in this country we've got a fed that says it's going to be all over when we get to six and a half percent on one.
We're looking at -- -- million votes who are either unemployed underemployed or who have given up looking for work.
They don't talk about it but it's that.
Bad yes how bad is it really in your judge.
Well be the metric that I like to look at is the employment to population ratio and the reason I like to look at that because it's the broadest gauge of employment and it and it's not easily -- the participation.
Well it's different than the participation rate it's the total number of people that are employed over the total size of the workforce that okay with very few adjustments.
That is currently at 58 point 6%.
Throughout much of 2010.
That was between 58 point two and 58 point 7%.
So by that -- -- -- locker room right now what's the difference I mean that's a little sold now correct so they're really has not been much of an improvement in employment employment picture.
And the reason why be stated headline unemployment rate has fallen as -- -- Is because of eight ball in labor participation so.
Fewer people are part of the workforce.
To your point people on disability for example or stunned that extended -- emergency benefits people are leaving the worst workforce and -- they're not being counted.
And the unemployment rate.
You're gonna market that is on fire we have.
An economy that is a still drawing a two and a half percent and I -- reckoning.
Give or take.
And we've got an extraordinary number of people who were on war and job creation just isn't taking place.
Until the last 22 to three months at least we can -- the -- Newton.
What does the future -- ports are we going to see these markets continued are we gonna see this economy picked up and are -- prospects for a job creation.
Well we've seen many bubbles and our lifetimes now and then and you know people talk about bulls vs bears I think that paradigm the traditional paradigm is somewhat broken.
I look at the market as a bull.
That sees nothing but red.
With the Fed as the matador and that's it it's fairly irrational they respond flows they are driving stocks fundamental simply are not driving stocks anymore.
So it's really anybody's guess as to when the markets are going to pull back -- any real way.
No one is Smart enough to know what that catalyst will be.
Well -- -- -- Peter that you're being too honest.
You gotta come back and look at the real answer Peter thanks so much bank do -- --
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