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I can so that users they'll slut you know essentially flat on the day.
Well as the market continues to hit record highs though my next guest says it's high trading volume -- giving him one of the ultimate signs of market confidence joining me now -- candy.
Chief market strategist the managing director at Knight capital Peter thanks for joining us things are so so from your perspective it is still safe to to jump into this rally.
Well given the certain back -- it says set up -- like this PD supports the market.
Inflation is low quantitative easing is still in place earning season it's been very supportive we have improving macro data in form of housing durable good sales industrial expansion and employment.
All of those factors are working to support the market that's not to say we won't see is some sort of a pullback predicated upon some you know unexpected event.
But or eat something even expect -- like a Federal Reserve shift in policy.
But that said this support is there for equity markets and Friday we saw a tremendous upsurge in volume in that have an awful lot to do with institutions.
Placing more assets into the market.
And effectively giving more support for our current pricing.
So clear what happens is the market jittery enough that it Ben Bernanke stops to really perhaps talking more terms of tapering down these a bomb purchases.
What does the market do.
I think that the market's march higher moderates.
I don't think that if the chairman were to say you know we have a -- six point 5% or six point five.
Number -- unemployment that that would necessarily dictate that the market with -- -- now.
I think that ultimately what the market will do it is really.
Sort of temper.
The move higher that we've seen over the last four and -- half months we go -- back even further since quantitative easing was an initially install as a fed policy.
But effects will be the markets.
Have the support for words are currently priced so even if the Fed were to take their foot off the pedal.
I don't think that the market would necessarily.
Pull back very severely could -- moderate -- march higher apps so we would that be good.
That would actually be very very good for the market and we give it a more sustainable tone right that it stand on his own two feet exactly FactSet data.
Which areas in particular sectors do you likely putting your money.
Well I I've loved homebuilding for well over two years the homebuilding sectors the financials still stand the most to gain.
Although those -- -- technology Telecom.
These event outperforming the market will continue to outperform the market because as the economy continues to rotate towards a more sustainable growth track.
You're going to see those sectors of the economy continue to gain the most.
In particular housing which has been and throwing but I I think has an awful lot of room to grow certainly does you know it's funny the -- funds are still attracting.
Some pretty decent flow inflows I mean -- how do you explain that.
Well I think that there -- is -- still a fair number of people out there.
That believe that there's more down side to -- there's the potential downside the economy.
Because we aren't quite yet on a trajectory era self sustain the fight -- That's -- part of that that another part of that that is the sense that.
Not everything is okay in the world there is still some concern over GDP expansion in certain key areas of the world.
Clearly this concerns over the EU there's clearly concerns over China the most recent data suggesting that.
Those coupled with the concerns over the Fed taking its foot off the guest battle.
Are all playing into that bad bet for all intensive purposes.
But the market continues to -- tidal flat today but my goodness it's been an incredible rob Peter Kenny thank you so much for joining us we appreciate it thank you.
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