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And despite the recent slowdown in -- our next guest says equities will bounce back bit before year end.
-- crop Wells Fargo private bank regional chief investment officer joins us now things -- being with a -- So we started the year the S&P 500 up 146 -- -- it's now what about 1660.
Where are we gonna be by year end and then talk about 2014.
So I think our our target -- Stennis is 1752.
Excuse me 1615 to 17100 -- the low end of the range at 1660 this morning we still think there's room for expansion.
Price earnings multiples are -- were fourteens right now which is still below the fourteen point seven long term average.
I don't know many bull markets that ended a fourteen multiple we just have never seen that historically in the fourteen though we didn't -- somewhere around 5% earnings growth.
A little bit of multiple expansion with a target.
Of 1715 to eighteen on.
-- over that close ties 18100 by 2014.
But others for -- here's -- It assumes that the Fed does what on the much dreaded tapering off what what what will happen with the Fed to allow this to happen on your forecast we'll certainly.
We think tapering is a little bit overdone the market has anticipated -- for quite some time -- in the -- there's this great debate about September we'll see the July minutes.
The Fed minutes tomorrow right will be looking for signs whether that -- in fact happens in September.
Or maybe -- put off to December.
The point is tapering what happened -- needs to happen the economy is strengthening we're seeing better economic data.
Companies will will.
Parlay that into earnings growth throughout earnings leverage I think that will continue to be good for stock and every time I think finally the taper fear is already built -- -- stocks we go back up and then released just kept them.
Kick the struts out we go right back down again I want a week's vacation -- come back we're barely hold -- -- it down 151000.
Am personally offended by it.
Are you saying the Fed does start cutting back on bond purchases in September.
Well I think it's it's still debatable it's about a 5050 shot right now but I think -- -- -- is.
On -- bit more data that would suggest that September would be the month and -- I think which -- even minor Dennis is.
The the markets and the Fed are fixated on the job -- mold -- they talk about a big data dependent.
But if you look at the weekly jobless claims there at a pre recession low in the four week average is that a pre recession low.
With the Fed fixated on jobs data I think that's important.
And they want to continue her with a wanna start that tapering process and I think Bernanke wanna start that -- process.
And I think the markets are reacting to battle but right now remember we had the same reaction.
When the market went down about 9% right -- since rebounded from there.
I after the may original discussion about tapering so this is not unprecedented the markets typically we'll do this.
I think investors should use this is an opportunity if you are under allocated in equities to bring that act that equity allocation back up we've seen since 2007.
A trillion dollars come out of equities this year only 176 billion through last week has come back into equities -- only 10% money has come outside -- come back and it's.
-- so investors woke up maybe I'll -- a 17100 S&P 500 by year end.
1850 S&P 500 by year -- 2014 those your highest -- for holding of those thanks for being with us -- -- -- -- -- today.
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