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Our first guest says that would be fed unlikely to change its policies anytime soon in the markets will be choppy through the rest of the year.
Joining me now Steve would Russell investments chief market strategist with more on what he thinks are best bets for investors right now sniffing would end -- maintained its populace who.
Through the rest of the year there some is quite a period of time is in the.
It is to be more than half the year so yeah that that if he if you look what the feds trying to accomplish -- they've been very specific.
Bernanke and company they wanna hit six and -- percent unemployment -- plus 2% on inflation and they want it for a half to 5%.
Nominal GDP and when you look at it in the time left for Bernanke's term.
He's gonna opt out by his own statements so are we likely to hit those very aggressive you know real numbers real economy numbers by the end -- there.
Probably not so I think this is it really going to be in that issue for the next chairperson of the Fed which.
Probably going to be Janet Yellen at this point he's an odds on favorite so I think the highest probability is that -- that he's not gonna do anything dramatic before her tenure starts.
And then B I think the part of quantitative easing one in QE2 -- that it ended on a certain date.
And as soon -- that they start approaching the market started selling off -- -- summer swings so I think that the Fed is gonna wanna keep the date uncertain.
So that they can get more bang out of the -- of this policy.
Kinda keep the market guessing that they could still keep the accelerator are depressed for awhile what does that mean as an investor the -- this can be -- little frightening for people -- missing these -- -- sure that means you need to extend your time horizon you need to start looking in increments of years not increments of days or weeks.
Get that strategic asset allocation right and then you're gonna need to look in this multi -- space.
Which means global as well as the US you know -- cap large and small but also looking at things like.
Emerging markets for longer period investors right now money pouring out of the lynching outpouring also the -- -- has become attractive also it in the United States for example looking at valuations which are downward.
That the areas of the market and if you look at the Russell 1000 up about -- -- fifteen ish percent you're today.
But the area of the stock market just on the best of these very defense of so if you if you look at our defense of a dynamic indexes.
It's all stocks that they have a lot like bonds so people still like fixed income but they wanted to get that yield in in equity space.
So there's a lot of valuation mismatch is actively managed to do your homework but you're gonna -- a while for a -- this volatility right out and what areas in particular do you like in this environment what we we like the US because our economy relatively is doing much better -- -- it in different -- large -- small may be lean a bit in the cyclical names also look at where valuations in Europe are attractive now we don't like Europe over all systemically but there's great stocks -- -- can -- within -- There's listed infrastructure there's global credit so there are ways to create like this multi asset returns strategy that think investors are gonna like and there are different -- -- -- -- probably -- in US equities.
OK I wanted to mention to you before we run at a time.
What's going on in Asia particularly in Japan coast and he came down more than 6% today it's -- -- -- ugly ugly day there in bear market territory the the yen now is gaining strength what's going on what implications is -- half of the -- There's just so we can have guys in Japan for other firm five days and in their very interest in knowing what the west thinks but there's there's the three components -- the three -- about in comics.
What it's kind of easy to accomplish you know you just need -- head of the Bank of Japan to double the -- right the second one is fiscal policy just didn't know a 10200 people to spend tax and spend more.
But that the third was going to be these structural reforms -- that that's gonna take -- 51015.
Years for a lot of the structural reforms in in terms of agriculture pharmacy.
In and investment bet yeah congress so I think.
-- and in Japan for the first time in a very very long time Japan's interest.
Japan has happened as an investment.
It is now could be positive or negative interest yeah it can go up and down but for the first time Japan is not just flat lining.
It's interesting is so understanding where are going to be the pockets of opportunity.
The pockets of risks.
I think is going to be very important.
The yen is going to be critical.
Yeah did the Japanese what they're yen -- so they -- -- of course is kind of goose their economy a -- -- going in the opposite direction -- and the Koreans in the Chinese -- the other -- economy they won't like that either us or you're gonna see a lot of pressure from a currency perspective.
In Asia so stay tune but I think China which is becoming more -- -- 8% grower.
More independently not like at 1011 tries -- grow so maybe some of the new information about who's gonna come Japan for first time in a long time.
There -- stuff -- it is always thanks for being here appreciate it.
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