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Sticking with the market so where do we go from my first guest says stocks still -- significantly cheaper than they did back in 2007 and it is a reason to buy.
I'm less worried -- chief economist for stress joins us Bryant.
Put this market rumors all into perspective for us which take on the -- markets and where we're headed.
Yeah I actually I'm kinda have.
This market's down the last three days it's it's just been a straight up run if we -- we never goal in a straight line but.
Even where we were three days ago at those peaks as the market was significantly undervalued we think that that that Dowell.
Could be worth about 20000.
Even if interest rates go up from here so.
You know the bottom line is this market still cheap.
It's cheaper today than it was three years ago were telling people it's a buying opportunity if we get a sell off.
Over fears of fed tapering.
So don't worry about it and wait -- market chef falls if that's what you wanted to know but.
By what the heck happened with the Fed and Bernanke this week the market got all kinds of mixed messages right.
So what do you think gathered -- had a couple days to digest it the next move on monetary policy will be will we see this -- bring in September at.
I think there were some -- would happen as soon as she.
-- -- Sure I mean I don't know when it -- happen and probably start sometime this year they're gonna go in baby steps.
Okay we're not gonna buy any more or or were only gonna buy forty billion a month instead of eighty and then ten.
And then we're not gonna buy and then we'll stop investing.
Interest payments and principal repayments and then we're gonna let things roll offer maybe.
May -- even sell some securities and then we're gonna get to the rate hiking.
And and that's all gonna take place over the next twelve to eighteen months.
I I personally don't believe people should be overly worried about this that.
US corporations are more profitable than they have ever been and productivity is rising.
The economy it's it's not booming this isn't a boom we call it a plow horse -- I'm not only -- you get out and it would allow courts discriminate you you've made a name for yourself plow horse -- -- -- yards a carry out I've been reading about it.
And that's OK that's OK you know above flowers and it is got a big -- and thick legs it's not gonna fall over.
It may go slower sometimes it may stumble a little bit when -- -- some clay Iraq's.
But but it's not gonna stop and and everyone knows that the Fed hasta -- -- this stuff.
And everyone -- also really concerned Brian -- you know the peak.
Argument for the bull market is that the Fed has treated this well the fact that because -- are so low everyone's going into the stock market so why not just psychology of that.
Backing off and manipulating the markets no longer that a local Red Cross to -- -- so does that it all shake your 20000 outlook for the Dow.
No it doesn't and it you know here's something it's kind -- -- complicated thing to get into about monetary policy but let's just say.
They quantitative easing the -- dumping all of this money and it's flying around and helicopters throwing money out.
And people are picking that money up and buying stocks that's that's -- essentially what this argument is.
Well if that were the case then.
Price to earnings ratios would be -- rising in other words.
The price of the stock market would be be going up just because there's all this cash flying around it would have nothing to do with the earnings or economic growth.
-- what we've seen over the last four years is that PE ratios are actually lower today.
Then they were back in oh waiter early -- and in other words what I'm getting to is I do believe.
-- is what's driven stocks I think it's been profits that have driven stocks and I think they're gonna continue to grow.
In the quarters and years ahead it's a fantastic argument Brian Westbrook thanks as always for joining us.
Thank you -- All right now to the latest cyber threat Iran.
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