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And he everybody else can have a problem graphics -- mind around this point.
I it's very strange well it looks like they're moving -- despite all of the queries about whether or not it's it's on the up and up they are moving forward at least today let's move forward.
Get today's action we've got Paul Dietrich -- Fairfax global markets CEO and chief investment officer he says.
Don't change your portfolio based on the Fed's anticipated.
Moves and Larry -- in the pits of the CME Larry we -- talking -- traders in the last hour and they were saying.
It was a compilation of a bunch of issues everything from Egypt to.
Bill Dudley over at the New York -- making comments once again that started to move these markets lower what did you see and what do you think it happened.
Yeah you know there's I think what you -- hit the nail on -- had -- -- voted just -- hands right now we have a lot of things coming up.
Especially during a fourth of July will be -- -- -- bank of being -- Making policy changes or maybe not making policy changes we have our unemployment report coming on Friday.
Earnings season coming up so something like Egypt which is a very big deal however I just pray as -- creating.
People atmosphere people just want to get out wanna get how the market altogether.
Not -- interested in a gentle upward flow that we've seen early par today what Paul they trick -- it is true we got these big important up.
First coming up on Friday the June employment numbers but what is moving the market more now is is a concern about.
The number is or is it concern about fed tapering.
Well I think investors have overreacted.
To the feds remark marks earlier this month.
This -- is not going to do any thing dramatic.
In fact that this is going to be a reactive tapering policy -- that that was a real.
Economic growth goes up they're going to -- a little bit to offset.
And the start.
-- winding down probably.
Letting a clear understanding what you're what you're saying is that the Fed tapering concerns is weighing more heavily on the market but the -- wrong in letting that happen.
Investors are -- in the end.
The Federal Reserve is only going to start tapering -- after they see real economic growth it's going to offset.
That economic growth so that investors in the long run are not going to see any.
It's but I'm sure in the pits of the CME Larry there is no shortage of chatter about when what how where.
But the fact is that Paul is right -- you can't sit there and start moving around Bob what you knew would eventually come to pass and that is some type of tapering -- Do you see it floats trait inflows that indicate to you that people are starting to do that and if so what -- they look like.
-- amassing flows and at that all went on the seniors people -- and chaos right now I mean.
What happened last week really left the market means that somehow the market crossed the line I mean we all know that -- is going to occur at some point.
And people are -- Why -- the market -- in such a tailspin on something that we all know is gonna happen sometime as only gonna happen when that data is good enough to warrant it happening so.
It really did leave a market people are more skittish than anything else but I do -- to say that a lot of the -- we saw last week.
It was fast money hedge funds we didn't see any of the old money really liquidating in mass I think they're staying light.
Well I and Paul another thing that scared the hell out of markets last week in the week before which China.
Our concern about whether they were going to -- it into a tailspin you have a very interest in contrarian take you think China is actually about to take off right now explain.
That's exactly right I mean it's no surprise to anybody in the United States that politics.
And the government a fact.
The stock market and the economy here at the same is true and -- centrally planned economy.
If you look at the transition of governments.
Through these ten year decade long transition you're always seal slow and you during the transition period.
It's also a period between the economic plan on this -- the five the intent here economic plans.
Now those plans are in place they've been -- they have a new government that's in charge of implementing those clowns.
And what we are going to see.
I think -- and their breath taking -- talking about moving 250 million people from rural areas into the city's newly built cities over the next twelve years.
That's on the that's the the amount of commodities that are going to be needed for that.
To be implemented and they will implement it is just outstanding -- they're gonna start buying those commodities I believe and start making those purchases.
At the middle to the end of next year or so now that were at a multi year low in commodities.
This could be a really good time -- to be buying commodities and then in anticipation.
Of these new five and ten year growth plan on this in China interest and.
I'm an asset class like commodities to an actual area you know the VM SCI.
ETF is just got slaughtered but I'd like it up.
-- like a deck of cards pick a country any country that you really like right now.
And I know that you're looking in South America and Central America but why and is there a point on the map that you think is poised to really brought.
Will you hit it you know -- you're after the Great Recession.
Where for the last fifteen or twenty years our economy is bad bill -- banking and investment banking financial manipulation.
You know the bond market the IPO market and what's happening with this recovery is is really looking good.
I -- we see manufacturing.
Being recharged for the first time in six you know 1516 years.
To the United States from Asia coming in from Europe we see the energy.
Renaissance coming -- housing is coming back.
Our -- Connelly is really being built on on a solid foundation at.
Agriculture is another area where wealth is being created in the mid -- you're not fighting Paul I I thought it like Mexico on track I try to figure out and I didn't Canada and Mexico our guard down I see RE cannot North America.
In terms of Canada Mexico and the United States were all going to be energy self sufficient were all going to be energy producers were all going to be food exporters.
Are -- we have everything that the rest of the world once plus we've got a 450 million person economy in North America and that's why I think Mexico is is undervalued up -- Okay and Larry one thing we don't have enough club anyways jobs right now and before we go I just -- get you're clue what are you hearing from traders what are they expecting from the jobs numbers on Friday.
What traders are expecting consensus -- 1557.
And a half seven point six let's traders are really saying though is that.
We need to see a number below one -- or about 225.
To cause any problem or panic in the markets there's a wide range we're gonna -- What -- the Fed to do anything right now I mean obviously good news is good news right now we see a -- like to waited five different story -- 110 to 25 anywhere in that range.
We should be okay this Friday okay broad range Paul Dietrich thank you very much from -- for its global markets and Larry we're gonna see a couple minutes when the SP futures close thanks gentlemen.
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