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They've actually got in profit and see Ellison -- president who says this week's rebound may be short led.
To Mulholland is in the pits on the CME let's -- that with alcohol and anyway the big story line today is everything's happening I think it's bad comments first him.
Really are the most citing not surprising but shocking -- the market participants on the -- But I'm really coming on the heels of -- we heard you know we saw yesterday in the GDP report.
You know -- that.
That growth is slower and you know that the Fed set what would.
And said what would get them to stop what levels might get -- to stopper begin to.
Not withdraw but just slow the pace of purchases so it looks like we're not there yet I think the Fed's -- tried to calm the markets somewhat today.
-- know course the bond market moved.
Higher self I think -- -- to get used to stock prices and bond prices trading tied together so in other words bond prices up stock prices up.
Bond prices down stock prices down kind of like movies movies do you like in the mid ninety's it bigger remember Baghdad so I think they just called the let's not forget the fact that.
-- they're not even talking about withdrawing any aren't shrinking their balance he could just talk about slowing the pace -- -- I think McCain we're coming to some sense of reality to what.
That policy really -- and.
And in fact we did see the ten year come down as we just saw about six basis points but -- doesn't worry you does a body that the Fed can't seem to get out.
Of this bond buying trapped -- -- it there does seem to be a little bit of a trap here doesn't there.
Well they got a mess on their hands and I think when the time comes I think the real problems gonna come when bond yields -- they can't control it.
I think we're not at that that point yet so.
You know I think they got a mess and it's obviously doing getting into this was a lot easier than exiting and I think they're in other tests in the water and they realize -- -- -- got a big job ahead of them and very uncertain job.
Ahead of them and a lot of you know reflexive -- you would hope that's I gonna be a result of what they do -- how they get out.
In Eugene a lot of the that the data we got today an economy was positive markets higher for three straight days that you think this is -- -- be short let's -- I do I think because the Fed has indicated that they will stop the did not stop him today I would -- -- On that the economy is not strong enough but they are -- -- -- on the -- that's gonna have some impact of sooner or later we're close -- it in a few weeks and these and we are in the beginning.
And I essentially think that the market has been very strong for much surpassed.
Here and that you're gonna see a breather happen over -- some.
Eugene we -- short term were coming into a holiday week how do you think we're gonna do holiday weeks are kind of tricky some -- particularly.
What you're in the middle of something like what we're in right now.
Well you get a little bit of -- performance gaming going honest in the second quarter along with a -- day.
-- the fact that we're up yesterday and the day of course was a result of get more clarification -- the Fed not.
Hit an exit immediately but also.
With -- being -- you have investors going to names that have worked.
That tends to provide upside pressure of post holiday I think you'll see a little little pulse.
You know Tim you're you're talking about bond yields obviously and -- -- -- -- -- have been watching since Ben Bernanke came out again that press conference in bond yields went through the roof.
But on the equity side he's -- -- we really got to be careful because of what we're seeing and the bond market can you -- -- further about explanation for us.
Well I mean I guess that's that's looking ahead I mean let's face the facts that the Fed had their balance sheet about 900000000000 and -- It's what 3.4 trillion.
That's two and a half trillion that they put into the market now still continue adding that money still sloshing around so.
I think that -- equity markets I won the first half of the year up 13% or so in -- they -- think they weathered it pretty well.
But what you got to watch -- is the economy getting too hot.
Meaning too hot meaning I think it's gonna impact earnings negatively as companies have to hire people.
They have to spend on R&D capital expenditures so that's not a positive earnings.
But I think a bond yields reach a point where you know and again I remember when I came in this business went by their tenure was 15%.
So I think you know we are definitely -- the bottom of that -- into the ranks but I think we're bond -- accelerate.
To the upside is when equity markets can be a big truck.
On June and I did this I want to -- I think Tim just what his finger on.
The conundrum for the Federal Reserve board were right now which is that one of its two mandates what is to keep the dollar stable the other is to keep -- -- one adapt.
And as as we just heard from -- A part of the problem for a lot of companies is if the economy improves that could slow down on their growth so what is good -- work -- -- -- of what is good for jobs may actually be bad for the stock market.
-- yes and no I I think that alone with all the improvement in the economy also have had a lot of promoted efficiency.
I think that there are some jobs that just won't come back and while I agree.
On the the very fast growing economy on companies will have to add on ended there will be.
Com a little bit of pressure from -- the labor own margins.
Of the fact of the matter is.
That because of technology faces is because of the fact that.
Honda has been a whole lot of pricing power well much of the past two years I think the margin increases that would come from the ability -- crisis on the I'm less concerned.
About that because I don't see -- in place and I'm more concerned.
About com just overall perception of the fit comes out.
On this is raised -- higher of that affordability of the housing market against her down.
And it really had good numbers today with the consumer on the essentially pump prices are going a little bit higher and that's why I think that you will see a little pause.
On the -- second half of this year.
You know -- I think isn't it one of the stocks that you like is Intel and a curious why you like and how.
Well I'm completely I'm joy contrary growth investor and that and the fact that matters -- trading.
At the very low in the -- valuation range on the reason has been that has been very weak in terms of mobile computing they're starting to get their arms around that.
-- and you start to see a technology upgrade cycle began to.
Come around again even though Microsoft -- -- -- the windows they.
Console Cisco's doing better -- also it's better I think Intel's just one step away from getting back into the middle of its historically -- -- Yeah -- always eleven.
Imagine -- 19100.
-- it's why -- suddenly looked events -- ash was like there edged Eugene profit instinct -- from you great commentary as well.
Tim -- and we're gonna check back in with you would just a few minutes to see how the S&P futures thanks guys.
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