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Just don't worry about the Fed or -- China slowdown US stocks are headed higher in the long term James Lavin boldly with all asset management joins us now and James.
This is more than just losing -- UC monetary policy -- C three pillars for job growth in the economy tell us about well.
That first off you've got -- labor picture that is clearly improving now I realize the employment report was a week and a half ago but it was darn good and we're still enjoying that.
We've also got a budgetary picture of the federal level that is improving and and that's meaningful that means a lot for being able to reinvest in this country.
Finally there's an energy Renaissance that we all know has been going on but it continues to pick up steam we continue to increase production.
Not only of natural gas but crude oil that's gonna help us as far as.
Energy independent stuff from countries that really don't like us.
As well creating jobs here in the US and -- nice thing is is is that these pillars are in spite of some people worrying that it's all just a big -- souffle created by only by fed policy.
But on the Fed you actually think that they're -- -- and that's good for stocks as well well I can listen I do think they still have an emergency policy in place even though the emergency is not here.
Having said that they're clearly in our opinion going to continue to do that I mean Bernanke has made that clear.
And as an assistant enthusiastic as we are in the labor picture he wants to see a heck of a lot better numbers before he takes its foot off the gas pedal brake not your three -- -- -- -- -- hot housing market for a a minute everyone worries that rising interest rates we've seen happen could slow that housing market but isn't there also a chance that it could actually speed up purchases well you're right I mean there has been this phenomenon of people waiting on the sidelines to see if prices get cheaper or interest rates go lower.
Now there's definitely incentive for people to move off the sidelines and take advantage of rates which are still very low on -- historical basis.
It is not inconceivable to us that a year from now or maybe even six months from now you could see the ten year treasury about 3% Mo and that would put upward pressure on mortgage rates so there is incentive for people to close deals now.
Rice is the summer selling season it's a good time to be purchasing homes and that's when most of the sales get done but but if we have ten year treasury rates -- -- -- 3% that doesn't suck some money out of stocks and -- stock prices.
Not if it's based on economic growth which is what our basis for saying America is good it's so that's that's why we're not worried about that and about the about the federal budget.
Pictures look and better.
Pulled that would be because of the sequestered and have absolutely right it was trying to -- -- the Jabber is out of -- summer sequester now you're absolutely right at the end of last year we got tax hikes and an early -- this year we got the sequester and lo and behold.
It's doing what it's supposed to do which -- help secure the federal budget deficit.
You know we're somewhere around 4% of GDP is what the projected deficit for this year is.
And it's gonna look better next year the only way really out of this in the long term method.
Is economic growth and we've got the positions in place to have good economic growth going to 2014 and that US energy production is an important piece of that economic growth is -- absolutely now Dennis look let's let's face -- this could get messed up Brit pretty easily by politics right we really do still need that keystone XL pipeline come down here.
We've got very cheap oil up in Canada up in North Dakota that needs to come down to the Gulf Coast.
Heck you know there's policies in place to prevent us from exporting that -- That's the oil that we want to export because it gets a better price because it's the sweet type of well not well sulfur and -- We have refineries all over the US that are capable of of refining that sour oil come from places like Venezuela.
Hey will take the cheap stuff refine it and we'll sell that expensive stuff overseas.
But that requires some policy adjustments that seem to be long in coming.
Which is hard coming from a government that actually is very anti -- carbon burning energy I don't think they want anyway anything there but thank you so much for being with us today crisply done.
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