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And there was more bad news for the economy jobless claims hit their highest level.
In six weeks the number of Americans filing for unemployment benefits last week rose to 360000.
Of course that report follows the Wal-Mart store in -- call was just talking about.
With all of that in mind what's the deal with this site -- it's a disappointing.
Set of economic figures if you include Wal-Mart we have Jeff -- what this chief investment strategist -- Raymond James -- joined once again.
As well by Charles -- from fox business and Matt -- reasons so.
Are still Charles the UK the stock market straight but the economy isn't necessarily so great kind of -- to change that.
-- I'm still there although I will tell you despite the wal mart's numbers this earnings season I think we saw a lot of companies that set America came in stronger than than we expected Cisco.
The biggest one of the biggest winners in a market today America's carried the day for them and that's been a long time since you've been able to say that so.
They're a little glimmers can ever for me guys this is that the American public is still not buying into this the only thing that I can see that I think it's happening.
As I've been -- the drop -- -- that people are living for tomorrow also.
Our savings rate has gone down at 2% we spent almost every nickel that we have but we're not taking the bait when that -- not buying things on credit cards it was certainly not saving for college starting a business and those kind of traditional thing so.
It's it makes for an odd mix and helps to retailers in general in Wal-Mart.
Down a -- from an all time highs not a big deal.
-- and Jeff you're not worried about the economy are you want to market.
No I'm not worried about either want -- might think the one.
Statistic on the job claims today it's -- it's like one off.
Item that I wouldn't read a whole lot into that as far as Wal-Mart goes our analysts are fundamental animals but -- get to actually downgraded.
The shares to market perform a few months ago on valuation in about fifteen times.
And you know there's probably better places and Wal-Mart right now.
If -- what it -- us a few of those are you wanna.
Kind of like well yeah.
I had many reluctantly did you ever think you might -- what's gonna say next -- -- -- -- the second time.
Well the we we still like the drug retailers we are my fundamental analysts has outperform ratings on Wal-Mart and she's not Wal-Mart -- -- greens.
And Rite -- We think both of those -- -- pretty good from obamacare perspective -- you get more traffic foot traffic into those stores.
Walgreens made a acquisition here a few months ago of alliance boots over in Europe who was misunderstood.
They've gathered themselves together stocks up from about 37 to about fifty here they had good numbers the other day.
We still like both of those I'd rather be in those then in no Wal-Mart right now on a retail -- For more micro from -- more macro matte but new look big picture Jeff mentioned Obama care and with all of the for lack of that word scandals that we've had just this past week in terms of miss communication.
Among government government agencies not being managed appropriately.
Big picture -- long run how can this economy continue to thrive how -- this country continue to grow if they've got the government will only get bigger from here.
You know Barack Obama rafter got elected to convene a meeting of all the economic advisors and -- -- you know what.
What have what have I inherited what's going on here Christina Romer one of the senior advisor said if we're not careful to make the wrong decisions were warning to follow in the footsteps of Japan.
Actual plateau this thing off we'll have kind of slow Malays for a lost decade we'll spend a lot of stimulus money badly.
All of this came to pass this is.
You know -- I am not satisfied with an economy.
Where you have labor force participation rate lower than expenses 1979.
Back in the battled -- days.
We're gonna have this for awhile because we didn't address the underlying problem at all of the financial crisis.
We -- digested this huge stimulus -- 800 million that billion dollars.
And then never cut spending after that we she'd wanna stay the latest Atlantic Christina -- wanted to spend a far more than that is indeed thought there was going to be sticker shock with a trillion dollar figure mentioned 800 billion of -- she made those comments that way back when.
Forget Charles the second I'm wondering what Jeff thinks of that the -- -- That's this because Charles was saying that some of these companies have been telling us.
Not and -- just -- the opposite but certainly something different when Matt was saying that hey America is coming back what you think the economy is right now Jeff.
I think they're going to go back and recalculate the GDP figures back in 1926 accounting for intangible capital.
The Federal Reserve wrote a report a couple years ago this -- companies in the US accumulate one and a half trillion dollars of intangible capital year.
And the accounting system doesn't really count forty intangible capital is best described.
Apple spent a lot of money developing and perfecting iTunes they can write off the research and development costs but now that they haven't what's it worth.
It's worth a lot but they can't carried on their balance sheet is an asset so I think you're actually gonna see the GDP figures.
-- revised upward -- when the Bureau of Economic Analysis starts to include intangible capital in the figures.
Again that's another that's you know listen that's kind of smoke and mirrors -- -- when you're just ask him mad about you use the word pride I think that's the wrong word we're surviving.
We're skimming the surface we're not.
Here's the problem a lot of people say well we're we're going to be Greece and I don't look I don't disagree were on that path but this is the greatest economy ever built ever designed in the history of the world.
Greece took about three decades to become the -- that we talk about today.
So we're not gonna collapse overnight but are we -- and are also there's not even near not even close to it and I think that was the point that matter -- making so.
You know you're gonna have this this this bifurcated sort of sort of thing where people got the one -- they can't believe the -- at 151000.
When their world is still in the same Malays that it's been a for a while.
I worry about over -- politicians.
And giant government that continues to get bail out -- nobody can opera right absolutely it sucks the life out of -- out of there.
Let's remember -- also that obamacare hasn't really started yet the the restrictions I actually yes that's that's going to start really kicking and in the next couple three years since gonna hit hit small businesses really hard now but back here a little -- you just a -- and from what your comments have been less committed -- sounds like you disagree with these guys are saying.
Well -- that real estate recovery is for real the auto sector is for real those have been the two sectors and typically -- the US out of a soft spot and I think they're firing on maybe not all eight cylinders but they're certainly doing pretty well right now you can see it.
-- bidding wars going on in downtown saint Petersburg Florida for condominiums.
-- just two and a half years ago we're going up the bankruptcy auction rates.
So I think the economy strengthens I think we're in the mid cycle slowdown right now but I think it strengthens when you get into the back half -- this year.
And I think the stock market is gonna trade higher into the into the quarter as professional money managers.
Have to pay up for stocks for performance reasons and then I think when you get into July August you are going to be subject.
To a potential decline of the double digits is that when we start worrying about the Federal Reserve that the economy looks so great defender ever -- -- amendments some of the case.
Yeah I think -- has to do it I think you're gonna start out you don't know this about me but I spent a lot of time in Washington DC.
Pretty well connected on the hill and I think you're gonna start hear things about continuing resolutions in debt ceiling since you get into.
-- well heartless -- the new deficit numbers pushes that -- to November but Depp I just gotta say a couple things.
When we gonna talk about auto and housing but let's put an asterisk next good because again we're talking about main street.
People by first time buyers of around 30%.
32% a year ago as far as -- -- -- concern.
Let's do a little concerned about the S sub prime all alone -- but lamented the fact of the matter is regular -- still aren't.
-- to leery of Bob whatever -- the economy the administration.
-- go out there in the make this sort of it's spinning in investments that really spur our economy on.
-- Ronnie -- -- are gonna have to think they're gonna have to buy cars because the average life of my car in this country is about twelve years ago never replacements I gotta go what I will -- -- we got about trucks pickup.
Plus and we are buying drugs that have no I'm not -- -- what's that I left and that's what's making money for automakers -- profit thank you are one and almost got right Matt and Jeff and Charles all three gentlemen look at.
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