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That doubt -- -- -- for letting his recent with a radical closes Ben Bernanke reassured the market that the Fed will keep its foot on the gas will be quote foreseeable future unquote to have the markets finally figured out the difference between.
Tapering and tightening.
Joining me now Jack Kaplan chief investment officer of -- private -- Jack thanks for being here.
I mean I have to realistically I don't know what Bernanke said yesterday that he hasn't said before it's just how the market perceives what he's saying -- -- what she'll take.
I think he is it's -- somewhat more dovish I think there is a a greater sense that he is trying to keep the foot on the accelerator longer than.
Investors had originally expected and I heard.
Testimony last month today he felt that he was misunderstood.
And he felt that he was you know.
Perhaps perceived to be a little overly hawkish so I think this is a way for him to back -- of -- of that.
Give in investors some assurance that he still will stand behind them.
And you know more money -- throw.
You say that -- -- the biggest news on -- is the fact that Bernanke is likely to retire what is what are your thoughts on that.
Well there is a concern.
That the potential of retirement in January and and I think President Obama talked about it.
Fact that Bernanke isn't going to Jackson whole.
In the fall you know could also signal that.
And so there is a sense that you know look he got us in acutely perhaps he should try to start to get us out.
Before he hands the you know has the briefcase over the next chairman so.
There is a sense in at least -- and our minds that you know we could see some tapering before your rent.
All right well yet to get -- finish the job keep the gun so to speak so were you putting your money right now on this.
Type of market where it that just wants to go higher and higher.
-- -- great right now anywhere -- seems like it's doing pretty well but I you know our favorite markets still are US large cap.
With a value biased -- -- the four sectors that we like him.
My most notably right now our finance health care consumer staples consumer discretionary.
That's just a combination of valuation and momentum and we've done pretty well that's so far this year.
Be on the US though I think it emerging markets are -- yes they've been turbulence we've -- to be rebounding a little bit.
And of course -- developed international we just initiated a position in international stocks most notably Europe but here we think that.
Know most of the bad news is out there and now policy makers -- have to are gonna have to come up with some kind of stimulus whether monetary or fiscal.
To get this more of their moribund economy moving -- either way that's going to be bullish for stocks.
Negative for the Euro so what we've done is.
-- of these European investments.
We want to hedge the Euro back to the US dollar.
-- various sectors in particular in Europe that you like Jack.
Well we generally hand -- off to other managers so we just like the -- overall area of the event the world and and we let other managers picked the stocks within its not often we hear that about Europe very quickly Jack what if targets on the -- and they -- We know that the -- economy is improving.
We know the housing improving the retail sales are caught our -- looking good what kind of a year -- number do you target for the S and -- Well you know if you just if you just told me fundamentals and you know you -- we took quantitative easing off the table I'd say 1550 so it's not a thousand points below where we are right now.
The S&P but given that we have this 85 billion come into the market and how we could you know continue at the age of sixteen.
Yeah just that disconnect from reality check Gavin thanks so much for joining us we appreciate it thank you.
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