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Let's get to today's action some -- joining us because we -- Edwards paid -- he -- Chase's investment council chief investment officer who says forget.
The Fed when it comes to making your investment decisions.
And Larry -- in the pits of the CME Larry it just looks like people believe that the Fed is going to say gap may be down around him.
We'll start to -- the bond -- program but for -- not so much.
You're probably right there right now the markets gazes clearly focused on the apple and -- we need to remember that.
A lot has broken down that narrative where -- is good and -- is bad.
That's disconnected -- broken down and eroded over the past six weeks let's keep this in mind having.
This -- -- -- on the table for six weeks in the stock market's been very very broad but comfortable range.
Look at -- look at gold that's not pointing toward toward the dumbest fed right now however the stock market seemed to be accepted fact that hey we might have some tapering.
Towards the end of the year and that is okay.
Well at work.
You'll like what Bernanke's been doing quite a bit but you do see the risks of this policy.
As frankly some people were even -- bullish on Bernanke inside the Fed do for example were beginning to see synthetic CDOs again.
Other kind of financial instruments that -- were partially led us into the crisis the last time.
Yell first -- -- -- wasn't the economy ought to work forward you know this whole concept of easy money that money.
Needs and -- sometime in the near future.
Like you mentioned the synthetic studios -- these exotic instruments.
Are quite scary and the fact that are coming back and vote is that something that's telling to me.
I view that this whole fear around tapering is somewhat misguided.
Precisely for the reason not to go back to some of the old transcripts.
Chairman Bernanke did say that we would need to see -- more sustainable.
Real improvement in the economy before we -- any reduction.
And as quantitative easing.
And we look at some of the recent economic data -- CI SM manufacturing.
With a reading below fifty to me.
That's not necessarily an improvement in the overall economy so I think you know we can just.
A look -- -- for tomorrow it's going to be -- there's going to be some volatility.
But by and large I think that it's more of an issue for two dollars.
Fourteen but at -- is it fair to say that you wouldn't necessarily change your investment strategy on what the Fed will or won't do.
That's correct and you -- a bottom up stock pickers were looking at individual securities.
I kind of technical profile to try to talk fundamental profiles attractive to us so we may take event of some of the short term volatility tomorrow.
Trimming some of the winners take advantage of some of the weakness but by and large were looking over the next twelve to eighteen months and think that this is just another sideshow well.
Let me let me follow up on that let me follow up on what -- was saying that because what -- Bernanke.
Says what the market really doesn't -- -- hear that the economy's the economy's going great guns are not great guns but it's doing fine.
We're really now be it won't be able to pull back wouldn't that make you change your allegations a little bit Edward.
Well -- it's funny Dave because if you take a look at the feds funds rate futures the market -- party pricing in some sort of a tightening.
In the summer of 2014.
If you look back two months no one was even thinking about the fact -- the that would tighten and now on the -- funds rate to sort of -- some tightening.
Being priced in the market.
So I think a lot of the heavy -- -- in the fact that.
The yields on the bonds have backed up about fifty basis points already in six weeks a lot of that the expectations.
Of this tapering have already been priced in.
That's why I think Blogosphere is somewhat misguided.
OK let's go back to Larry because we know that the -- I was joking -- -- -- bear down -- the New York Stock Exchange earlier saying are you gonna put on your football pads for all the action tomorrow but.
What does it do you expect we know that if there isn't really any -- and they're not gonna tighten rates for sure.
-- 9% sure of what do you expect the booms will be in the markets.
Well we're gonna continue to have them brought in volatile moves but I think a lot of it depends on clarity that we entries we received from band.
Busy guys talk about tapering vs tightening for the vast difference busy -- promised us that he won't sell any of -- balance sheet.
If you get -- he deserved legend and not play for the next couple years.
If that dog gets communique tomorrow will probably continue to ratchet higher.
A lot more -- like we did today.
But did get a whole lot -- mobile does the how the market and will continue to drive.
Towards fundamentals in the marketplace all right -- -- all this indecision indecision Edward there're still some picks that you think will work because the way the economy -- Is evolving we -- -- -- see the evolving of of technology of the way people pay for things and that's why you're betting on these give us more of a fill in there.
-- obvious this is the play on the continued migration.
Of consumption from cash and check.
Over two to merchants.
And to on line buying an electronic line.
-- has about 22%.
Like Roosevelt won -- 2% every year the continue to gain market share.
And this is a name that's going earnings in excess of 20%.
Trading for a peg ratio below one which is something that we really spent a lot of time on from the valuation perspective -- -- in and we like bad and.
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