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-- stocks continued to -- near record highs gold and oil sailing off and on next guest says commodity stocks will reflect weakening -- -- Joining us now is a good friend Margaret Patel senior portfolio manager with wells capital management -- thanks being -- this on this Friday.
Look I mean is.
I would imagine what's gonna push stocks much -- other than profit taking I don't see anything out there right now.
That's gonna cause.
Somewhat of a jolt to the market do you.
No I think getting correctional we get will be very mild because of momentum of corporate earnings is still pretty good across the board I think the mid part of the year the second and third quarter often have a slowdown in growth so it might have a little mini gross scare but I don't see that market could have much more than a few percent correction.
So which sectors do you think what outperformed the rest.
I think health care is going to continue to outperform because.
They of cost cutting leading to higher earnings.
We have they -- raft of new drugs that I think should speak well for.
And we have a lot of -- -- activity.
Takeovers and combinations which I think can lead to much higher prices.
I think companies related to shale gas will continue to do very well that made it bounce around a little -- oil prices go down around.
And and I think those sectors in particular would do well.
I think the financials also might start to accelerate as we see some lending going on in the corporate sector as we see house and pick up.
What about the commodity companies commodities getting a hammering today thanks to the stronger dollar is that a trained that you expect to continue.
A yes I think videos I think it's one I think the stronger dollar usually has a negative impact on commodity prices.
And I do think that we might see lower demand for commodities for infrastructure.
Particularly in China.
Because it may redirect assets away from all the infrastructure build and so I think those two factors that as well as lower growth in some developing markets.
May well -- -- -- on commodities.
So war with regard to that stronger dollar do what does that do to treasuries what do you like in fixed income.
-- I think it's going to contribute to treasury rates staying very low.
In that call it for the ten year one and a half to two and a half percent.
Because before a foreign investor if you have the dollar move up which it has.
So far this year for other currencies that says that you could get four -- 5% just on the currency.
In addition to the income in -- being a lot more important to be in come and I think foreigners are actually a little bit -- in our markets so I think that we may well see.
Money coming in stronger dollar our economy -- to -- salary by the end of the year and really helping to keep rates slow along with low inflation.
Right yet you know my -- a lot of people talk about the disconnect between the real economy which is still continuing to.
Very slowly -- forty in the United States in the record highs that we see.
On the stock market but I guess doesn't really matter when we have the Central Bank here and quite frankly around the world continuing to print money.
Well I think what the Fed is doing is really has a small effect on the real economy I think we've had a rebound in the economy.
Just because of the ability of business to restructure.
And to grow profits very very substantially coming out of the the the low point in the recession and I think that's why stock prices are where they are not because treasury rates are so low just simply reflecting great fundamentals in future growth.
In companies so and I think that's going to continue I think that we may see the Fed be a little -- Accommodating.
In permitting more -- lending activity.
Which will be there will be more on the regulatory side that would be real plus but but 1% -- I think have a real idea.
Doesn't have much effect of treasures go up I think you can still see -- better equity market.
Very good a place to finish -- -- thank you so much for joining us we appreciate it.
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