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-- -- are on the Fed the markets and where exactly you might want to consider putting your money right now what could be the end of the free money Errol let's bring.
-- Prudential Financial chief market strategist -- -- thank you for joining us from the president ought to read something if she said last time you were here with -- that if rates rise enough to stem the games.
In housing in the auto industry the federal slow down the -- talk.
At this stage of the recovery growth is more important than inflation.
Concerns you still believe that that we might actually see them that look we got that GDP reading I realize it's looking backward doesn't signal a healthy recovery underway.
No it's never been a healthy recovery but it's healing and it's -- would say the economy stronger today than it was last year at this time.
Also we've seen in manufacturing data on the regional basis starting to pick up they've started to tick up.
We -- seeing a little bit of a -- hook up in cap goods spending so that's good news and and it and it's not great it's modest albeit it's modest.
But I believe the Fed also had in mind the distortions in the -- -- that -- -- -- aided because of QA.
And I do believe that risk was a concern for them absolutely the Fed has and I don't want get to want -- -- -- talk about how to -- but -- the Fed has historically never wanted to deflate a bubble.
Right actually -- papers about this man essentially what you've just added that's what they did it took a little steam out of this equity bubble.
A little bit and I think they it with them.
The word risk started to come into the the the said.
Before you never sought all of a sudden they came and -- you've had.
Alan Greenspan and Volcker -- major major Central Bank chiefs.
Coming out and criticized the fat criticize the Fed and you don't see that there's an etiquette then in Central Bank them.
And you don't do that this is this is starting to come out I think they were aware of the distortions I don't think was a 100% but the fact is it's there.
I had just have to you know when you said -- in central banker yeah I was thinking -- amongst thieves but the ability let's get to school because we all understand right all right we have watched an incredible -- -- -- naturally Brady one of our analysts here actually has sent data -- 52 week -- for so many of the gold miners gold resource corporation -- -- gold Royal Gold -- lot of people are getting burned because they -- they moved their money into gold and now we're almost at 12100 dollars an -- What what should be doing right now it should be part of my portfolio still and it would seem now's a good time to buy it.
A very small portion of the -- -- what you know when he always goes to where it's best treatment that's the way the markets work.
When gold was the leading asset class if -- become an asset class -- -- -- Clients went in and put a 100% in two goal then they wanted to silver and you saw what happened.
So what's happening now is people looking at a single Q what is the relationship what is the catalyst to get gold moving back up against.
Above all else it's the dollar.
When the US dollar gets stronger vis a vis other other -- and and that's been happening take a look at when gold started to sell off.
You will see that the dollar started to rise against other currencies.
Watch if the data begin to weaken and we can substantial numbers next Friday.
If the manufacturing data start turning right back down what you're going to see happen is the -- -- -- on the expectation that the Fed.
Tapers to taper -- And the dollar starts to weaken as a result I think gold will go up also look at where gold went when the Fed had its meeting.
When the statement was read when he had his press conference.
Every time -- said.
Every time he said where we're more excited about that more optimistic gold went down the dollar -- up.
The primary relationship is the US dollar.
I read we will keep an eye on the US -- yeah Crosby thing but it isn't what you did say that they had -- I think it.
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