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-- let's turn to this market a little bit now our next guest says -- -- a point where good data becomes increasingly important.
And the Fed let's believe it or not joining -- -- -- -- Ameriprise Financial chief market strategist.
-- -- your being here with us are so far below market come back with that is that like The -- sell -- we even we inform.
Well there's -- chance that that's correct.
It seems as though the economic data lately has been better than expected and now that stuff provided a lift to the markets.
And I think -- at least a knee jerk reaction to the Fed's.
Inflection point let's call it seems to have flushed out a lot of the scared money from the market so.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- So well sea -- expect we'll be in Alibaba trading range for -- So why are you saying that this good data is way more important and the Fed because it seems to -- that this market moves.
Any word from the Fed since jitters through the market.
Well I think the.
Fed has now made it pretty clear.
What their intentions are there was some confusion about that for the last month us -- now.
I I think most investors understand that if the data comes and as the Fed Dell hopes -- forecasts.
Does that they're going to taper and I think the market is coming to terms with that so now.
The focus shifts to that data and what you want to see is strong economic.
Results and because that's going to result in stronger corporate earnings and that's really what you want at the end of the day.
Right because it really mean it we gotta get back to trading up -- -- fundamental announces as opposed to.
Again that word from the Fed you make a great point in your notes though that the interest rate policy is very different from QE.
And I think people forget that they're separate things.
You know -- what's really most important.
To the economy is what happens with market rates.
Now obviously the Fed is influencing that by being active in the bond market but as they become less active.
What's going to be most important is where does that yield on the ten year treasury go because you price a lot of other.
A market rates often that we think may be the ten year gets to about 3% -- so not much higher than that.
And if that's the case then that's -- still pretty attractive.
I -- structure for the economy.
In terms of interest rate policy the Fed says that are going to raise rates until the unemployment rate gets to about six and a half to seven -- and our friends and that's a ways off yeah so clearly.
Interest rate policy very different from.
From Q we.
So we got we got some time so now here kind of it seems to -- banking on consumer spending a little because you're rotating into the consumer discretionary into technology.
That means you're presuming they'll be business investment however -- gonna start spending going forward.
-- -- -- the economy's going to be stronger in the second half maybe not as strong as the Fed thinks they're up over 3% but I think there's a very good chance that we get to two and a half.
And under those circumstances I think -- consumer discretionary -- going to be perhaps one of the leading sectors.
It's consistent with this rotation to cyclical leadership that we've seen.
We got good numbers in that we've gotten enough personal income today.
I also think god corporate spending is going to ramp up a little bit -- -- it's going to be -- but better than it's been and that means good news for technology.
And I also think this environment is going to be good for.
Financials low inflation but better business activity.
So good for the banking system higher interest rates could for the insurance.
Life insurance industry.
So yeah I think I think this.
Some leadership in the -- -- that we're gonna see in the second half.
Let's talk a little bit about everything utilities easier dividend paying stocks in there they've been movie lately -- what's your feel gay gay had dinner get out.
Well I wouldn't get out.
But I'm I'm more intrigue that now there on sale -- there -- a little bit more attractive I'm not attempted to come in just yet because as I said I don't think -- Come adjustment interest rates is is quite complete yet.
But boy they're a lot cheaper than they have been and if you're an income buyer but you want some equity exposure.
They get a little bit more intriguing and we're not far from pulling the trigger.
On now we're getting back into those for those who want to generate some income and their portfolios David joy I would Ameriprise Financial on their call -- the -- here and is 1650.
Thank you very much sex.
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