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Down this relic of our next guest says it is just more proof that there are plenty of reasons to be bullish right now James freshly -- capital president is here and -- What do what today we're up -- 200 points who were pulled back a little bit consumer confidence tumbled as the coldest -- all -- points what is standing up to you today.
Well again I think down but gusting up to me is the Fed is going to be signaling and doing a lot of talking.
About their tapering and their easing off.
In the meantime they're getting fed some great ammunition consumer confidence -- a five year high the housing market now the coverage six year high.
With the recovery really is try to take shape and that's giving the Fed a lot of ammunition and now talk about their exit biggest but they don't want to do was spooked the market.
-- but they continue talking about it and it's on our mind we know the tapering with the easing off is in the cards I think we get more used to in the market can withstand.
The feds are ultimate exit.
So -- so we noticed that the that's gonna pull back if we if we get used to the -- tapering now it -- by the end of the year do you think we're gonna have to the -- and had a cup run up our hands as you mentioned already about all the.
They do a lot of signaling and I think.
You know this could be busy summer and after obviously -- that the job numbers winning three of those and that's a key factor on the Fed's mind received the employment rate continues for the unemployment continues to drive -- The second half percent still well above the target they -- six -- But but it has been improving the other thing is a lot of inflation and inflation data but right now it's -- -- -- that doesn't give the Fed a whole lot of reason.
-- -- current a guy gets its enthusiasm for bond -- But we think on what the second quarter GDP numbers come out.
Let that be digested a value wait to sequester cut to evaluate the higher taxes I think the market can actually be able to with withstand that -- -- -- economies will look pretty good.
I think the -- -- the start pulling back.
And of the Summers when I think that we're in searching.
You when -- even talking about and you've been doing this for the last year you talk about the color the -- colors of banking is the need that we were just talking about -- the call Bank of America's city JPM Wells Fargo.
I mean these general names that you've been backing for the last year the performance the stock performance is their best performing sector.
Was banking do you stay on these names and you were -- and you know double digit gains.
For the script I mean it's it's it's getting it's certainly getting harder but the fact is we believe that the core force we called it.
Armed with the importance of these large banks are to be the pillars again of the financial system and.
I didn't want him to miss this one you know worried that if I look at -- Bank of America 85% -- at -- a prisoner of election -- -- sober I got plants up and.
Comic yeah yes and no -- -- not over I think we're seeing the return of securitization.
Still well off its it's its highs in terms of -- creation.
From the pre crisis levels.
But better than it's been -- I think about 14% up over last year at the high margin business for the banks shadow banking system I -- that -- the regular two of the regulators -- -- -- things.
But the fact is these are important things for the economy do better.
And these are the types of products and transactions.
That allow the banks to actually -- better profits up to -- -- yes I think a lot of the easy money I.
Has been made but I do think the banks are going to be especially these large -- and innovate the way back into some high mark of.
Federal banking in this regulatory environment -- think that that's a message -- a playwright.
It is absolutely in play right now in fact I understand it the shadow banking system now has about sixteen trillion of of a -- 162 -- -- -- which exceeds the that the amount of assets in the private.
Deposit taking institution so it is a very important piece the private equity firms are playing a role in this taking a lot of the risk on but the fact is the banks are.
Doing this sub business and it's important for the economy it's kind of in the third leg of the stool there was the corporate bought the corporate issuance a lot of debt bank lending which has come back.
And now the shadow banking system.
We had confidence come out today we obviously have a healthy number cannot -- both of these really giving us a big boost on the markets -- got to pick up a couple of consumer names.
You don't like six months ago think actually they've actually comes perform best buy and RadioShack did it might -- I think is best by the -- 90% in just -- not to buy.
In the last it's my -- so sometimes you win sometimes you lose sometimes it rains -- we got I think the -- too cute.
Bomb we were thinking about we -- -- because -- like that confidence to consumers but we were looking for innovative companies were looking for inspiring companies and the truth is.
The great discounters and and the brick and mortar shops like a best buy did perform I will say having had a best buy experience recently the Geek Squad yeah.
Two thumbs up I have to say it was a very positive experience so I -- experience was wrong as well as my prediction on the on the -- The last man standing if you well ladies as well when it comes you know electronic stores.
Different playing thank yet -- right we'll talk to send --
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