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Things animated and Latin I look today's -- at today's session -- the -- isn't -- 500 were down 5% or more from record highs.
And struck just last month so isn't this the first step on the way to -- -- correction or are we totally overdue in this pessimism.
Let's bring in Scott Wren senior equity strategist at Wells Fargo advisors got -- great TCF.
You know it's interesting that really this downturn all started with TR talk.
So does that mean this is truly the correction we've -- import.
Well Tracy you know I certainly want our clients taken advantage of this correction it's only been 7% -- touch more thus far.
To be honest with you you know may 22 we started a correction when Ben Bernanke started talking about possible tapering.
I'm still not convinced that that's going to taper this year I think the economic projections that they've made.
Are a little too optimistic you know maybe sometime early 2014.
We might see something -- but I'm not convinced we're gonna see it in September or any of the meetings at the balance of the year it's got its Adam -- good to see you -- -- Tracy talks about -- talk that's not the latest showed NBC to get.
And sold you know we have to look it.
You know we we had a guest on in the last hour of pointed out that the market is totally ignored the other comments from mr.
Bernanke which were they would open this -- -- if need be.
And an M I was reading something here did the outlook is not good -- 2013 GDP revised down.
We're watching a slowdown in China and you're calling for the S&P at the end of 2013.
Possibly guys around 1575 to 1625 but maybe even at the high and 168217100.
Seems to me like -- talk is never -- -- see the light of day again.
Well I you know really I think that.
Valuations are reasonable word a slow growth period Adam and that's that's not a new surprise to anybody I think people are going to be more confident more comfortable.
That the US is on a sustainable although modest growth rate that's what's been happening we've seen a lot of foreign money come -- so.
You know so given our earnings estimates 56% growth something like that you know the valuation it even at 17100.
Is really is really pretty modest and it's only in line or slightly below the historical average so.
I think that's a very doable number I think the market is offering an opportunity right now at a -- -- the bond market people are just bail on out of bonds right now they're not doing that and stocks right now and there's a lot of nervousness about China and what's going on with with funding their banks overnight but.
I think this is a period.
Where we do have volatility we've expected volatility -- got to take advantage of the volatile.
Let's talk about how to take advantage of it now some of the sectors that you are overweight the consumer discretionary -- technology materials and Telecom we've -- here and -- A lot about these sectors recently you -- you think they still have more to run.
No I you know those those the defensive sectors are tracing those -- the sectors that are doing great today.
On what the market down but the sectors we like her very sensitive to the economy consumer discretionary we -- like Telecom but consumer discretionary materials.
Technology all the ones that really aren't doing very well today for the most part but I think if you believe that.
The recovery here in the states is going to continue if you think Europe is going to be less bad if you think China.
Is going to look better in the emerging markets -- you want to be in those sectors are very sensitive to.
That global recover you don't want to be hiding and health care and utilities.
And consumer staples you wanna play this second half of the cycle and you wanna play for the market to go higher because of continued economic growth but tiger had to sit and home improvement retail general merchandise stores what happens though if that you know people are -- and bonds and that yield on the ten -- keeps going up interest rates are gonna go up seems to me that.
Home improvement might take a hit from that.
You know really and if you look at mortgage application certainly on respond pull back.
-- you know four or five out of the last stuff five or six weeks mortgage applications have been down these higher rates are certainly gonna take a little steam out of the housing market and I don't doubt that the Fed wanted to take a little steam out of the housing market they wanted to take a little steam out of stocks they don't want stocks up 20% every six months and they certainly don't want -- -- -- -- housing prices going up 10% a year -- You know some of this may be a little bit of -- strategy to throw a little curve ball into the market but I think.
You know as I said I think if your outlook is twelve months or longer.
Even out to the end of this year you've got a good opportunity here.
Yeah got to go shop and Scott -- have Wells Fargo advisors think -- -- Right.
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