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And our next guest says the markets will continue to rise through year end because of the three major factor of a slope but stable economy.
Tail winds and housing energy and capital goods and a -- consumer is spending again.
Mike finger gradient investments joins us now and -- slow but stable economy when did that become a good thing.
I think it's a good thing right now -- really really like a slow stable to -- -- 3% GDP type of economy.
Because you have growth.
But you don't have growth it's too high where we have an inflation result there -- so I think I like the slow but steady economy I think that wins a race and I think it's safe in a way you know at a world the -- -- -- concerns right now so the -- rise -- stocks all year long.
Do you think it's just fed -- the -- a lot of Brady -- thinker do you think it's because we do have a real healing in the economy.
I think it's a letter I think we have a real healing in the economy I think we're a lot better off now than we -- three years ago.
When you look at stocks at a five year basis we're barely up where we were in 2007 so yes we've gone up a lot the last three years.
If you look at the last five years we barely budged off the bottom sold.
I'm still positive I think the economy is -- much much better shape.
And that's why I think valuations can rise and corporate earnings are doing well so you combine those two together right and I think as we digest these early year gains through the summer.
I think stocks will start to move higher in the latter part of the year.
-- -- stocks move higher through the rest of the year even if the Fed begins pulling back on the loose money policies are you instead betting that the Fed won't have to pull back on those policies.
Personally I don't think that the Fed will pull back on most policies I think the economic data and the metrics that they look at.
Unemployment at six and a half -- inflation over two and a half percent.
Neither one of those are close.
I think the Fed will continue -- and they said they don't watch the data for the next several meetings right so that's -- those next several meetings takes us to the end of the year so I think.
Bond buying at the tune of 8085 million billion dollars -- a month continues through year end -- Now driven boring a lot that that the Fed could blow this in the way it does this transition.
It is the worry if the Fed begins to taper against your your expectations.
Is the worry that all my gosh they're gonna blow it and the economy is gonna slow down or is there worry that -- a -- I'm not gonna make money is easily with higher interest rates.
I think the -- works like this if the Fed capers they do so because the economy strong right so I think the concern is that we have.
A lot of money being brought into the system interest rates are low bit of interest rates start to take up -- past it slows the economy down that -- corporate earnings and that puts a -- I'm Scott yes I think -- more self is -- think they're just think you have to be too hard for them to make money as easily have to do it.
-- let's talk of topics you're here three months ago you're recommended Microsoft.
Nice pick -- up 24% this for a long dormant.
-- fat pasty guy upbeat she's been -- respected.
But then now you like to retailers I believe it is all -- and plan talk about -- -- -- -- is a true category killer.
That it it's a stock that really even -- it's -- a lot today it hasn't gone anywhere in the past year it's it's really back where was one year ago.
It's a 20% -- on -- the sales and the and the bottom line on earnings.
It -- -- you know they sell cosmetics they kill it in that category.
About women of all demographics love it I think it's you know stock that should have a much higher multiple valuations 20% plus growth is rare I think it was -- -- Okay and dolce got Francesca that I thanks very much of -- today Mike bigger.
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