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Earlier this week the Dow posted its widest point swing in three months of today.
Across the unchanged line up more than thirty times yesterday was 46 -- I figure I would opt out all around.
Finally -- -- a small gain at least for the -- while some call this movement of volatile our next big money manager calls its sloppy but he says get used to it.
Joining us now is Bob doll his -- -- asset management chief equity strategist and senior portfolio manager and I've been following your stuff all over.
The various sites MarketWatch and elsewhere Bob this week.
Because what you say is a little controversy a lot of people think that this market is is a little top heavy right now and that it's due for a slight pullback and they say hold your cash and wait for the -- and he then go and you say no this market right now might look sloppy.
But now's the perfect time to get into it why.
-- pulled back so far in this bull market that's been right the right thing to do this is the third three to 5% pullback we've had this year.
The other two -- good buying opportunities I think this will turn out to be the same maybe it lasts -- little longer and goes a little deeper than the others but.
I think these cyclical bull market is still very much intact OK does that mean that the allocation in it and most people's portfolios we -- never generalized.
But should be pretty heavily weighted toward equities.
That's what I think Liz I think both the absence of good returns elsewhere cash in particular.
And bonds because we watching interest rates slowly tick higher.
Means equities some -- -- almost by default but they're good reasons don't equities to.
The fact that the yield on the S&P 500 is higher -- the year old and a ten year treasury pretty unusual and very positive for stocks.
The economy is making slow forward progress I don't think that's stopped in any way shape or form.
-- we have some to use my word sloppiness related to.
The Fed chairman's testimony in the week number that came out of China and of course the market decline from a very overbought in Japan.
Are let it actually let's talk about your Pampers say about 7% -- defeated Japan was huge.
A lot of people worried that morning the next morning when we woke up to that -- back that in fact it would carry over to here.
Didn't really happen did have a I have is let's say calming effect.
On our markets but it did lead to a tremendous downturn -- initially it did but then we ended the day.
Pretty flat well what about that that pull back did that bother you and how much legs does it have elsewhere outside of Japan.
-- I think give the action on that trading day yesterday was very instructive.
The futures were down now almost a percent and a -- -- you know let the worst and slowly all day long that -- are there were some sellers up early in the day.
But that -- dried up in the buyers is nibbled away because there's so much cash on the sidelines.
Pushing the thing back up I don't want to get complacent.
And say it's gonna go straight up we we -- we overdue for -- in the 35% pull back down but that would be in the context of a continuing upward move in my view.
-- fascinating to see the market participation is not anywhere near forget a 100% 7580%.
But at guide people who feel like they're ready to to put some money to work here in the market.
Which areas would be the smartest plays knowing the trees don't grow out of the sky and at some -- we might see correction.
Certainly I think he it inside the market one of the fast anything's going on Liz has been.
The slow but noticeable.
Change in leadership away from defensive toward more cyclicals.
And now that caused me to have a little more interest in the industrial sector and technology and I would do my incremental buying there.
Are we gonna have a pullback in defensive stocks.
Well I think that that we've already seen a bit of a pullback might we get some more I think so.
But my guess is over the next three to five months the defensive stocks will go up assuming the market goes up which I think it will bobbled the cyclical -- -- well.
More by the way a very particular question about -- -- you saw what happened PNG today way up over and over 3% almost 4%.
Was that because a change in management there.
I think you have to look at it that way -- -- left please had a wonderful history in his years.
-- running PNG and other stock did very well under his leadership.
I guess the hope is that dumb he might do some similar things and that the company would -- what would prosper.
Probably some restructuring coming probably some cost cutting coming and PG could use that in probably does better as a result Bob before we review is there anything denying that you -- -- you besides the obvious which is now at some point some type of -- could happen.
What worries you out there.
Well it but we're still -- an environment where we just can't get going in terms of but decent growth.
And Fridays ago from talking about nominal growth real growth plus inflation.
I still wary is there are the that's still there and I think they rear their ugly head from time to time we saw a month ago on the general declining commodity prices led by gold.
We need a little bit -- nominal growth for everybody continue to pay their bills and for revenues and earnings to make for progress.
Good to see you have a nice holiday weekend Bob have -- we have.
-- -- at liberty asset management well range.
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