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Title with the Dow down over 200 points right now on the Fed eyeing an -- of his bond buying wish to be put your money.
There's an event that an -- David joy chief market strategist for Ameriprise Financial -- before we start getting into where you should be playing -- tapering.
Are you surprised at the market's reaction to -- and well -- it's coming.
-- exactly I agree with Phil it's it's interesting that that reaction is this up for announced today.
What Bernanke said yesterday was not terribly different from what he said before congress back on May 22 he was just more explicit he said.
Hey maybe by the end of this year will start and maybe by the middle of next year will be done well let all that did was sort of put -- a little sharper pencil on what he had said a couple of weeks ago so.
I'm not sure what they were listening to I think it in the long run.
This is probably going to be a little bit of buying opportunity maybe not just right now but I think eventually.
-- this is gonna watch out as Phil says some hot money.
Because -- we've seen that the -- -- -- these bad movie ends before you know QE1 ended market will eventually fell 16%.
As indeed jobs about 18% for finally turns up ground so I guess everyone is anticipating the drop but -- -- big buying opportunity right.
Well you know I I'm watching to see if the market could hold the sort of 65 day moving average around -- 16100 level on the S&P so far it has.
We've tested this leveled several times in the last two months each time it's held.
We'll see if it holds this camera and if it does.
It will be a buying opportunity in my opinion in the difference this time around from the first two rounds of Q we.
The economy is better housing is better the labor -- a better.
We even got some regional manufacturing strength reports in the last couple of days so this time -- I think it is a little bit different a little bit better fundamental backdrop.
So when they announce it in you know some -- -- calling your calling for October December January either way we know it's coming let's talk about how we can position our portfolios for it.
I mean I'm on the bond side you really got to protect -- -- from interest rate -- don't you.
Yeah -- you do it's hard to know exactly where this is gonna settle our the move up -- 240 on the ten year has been pretty dramatic.
So we may have already I've covered a lot of the -- we're going to cover but it's too early to say that definitively so I think you still have to be short your maturities.
Reducing duration risk just to protect yourself.
And on the equity side I think you've got to -- avoided in the US still and I like.
That is what I call the domestic cyclicals like financials.
Like consumer discretionary.
We're the only major market in the world in the developed world is growing.
And I think starts here is still reasonably priced I.
And they also like -- is that because you're anticipating that business spending will pick up.
Yes now the problem attacking -- to be a little discriminating because.
As a sector -- derives more of its revenue from overseas and any other.
But nevertheless I think the US business sector is poised to increase in spending.
And and the tech sector in my view again is -- pretty reasonably valued itself.
We -- a -- -- we had a thought about commodities too because you know you just heard -- plan talk about that was going on down there.
Gold is down -- gold typically down this time here it's all part of a little cycle that it takes would you be getting into any of these commodities right now.
Well I wouldn't be getting into gold because I think gold is being watched dollar.
As a result of the Fed's projections but.
The rest of the materials complex I think is really being driven by the weakness in China and -- -- a cop in combination with a stronger dollar so.
I don't like commodities here I think the -- materials sector is really gonna remain under pressure for awhile so.
-- -- The same time though.
If we have economic data that starts to get better doesn't that build the case for the need for these commodities mean people in theory should start buying cars and building homes.
Yeah exactly although you know in in the domestic market if you think about final product demand.
Commodities as an input.
Is not that -- -- component.
I'd like to see a little more strength out of China before and really feel better about buying into commodities.
Having said that they're cheap yes there's no question about that if you if you all of them may -- why hang -- -- at this point as -- diversify our.
But I think it's gonna be awhile before you get rewarded for that.
David -- it's always about China lately -- thank you very much there.
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