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Paul thank you very much.
Well -- -- scaling back some of the spotlight for that senate next week's all important fed decision but my next guest says three.
IPO filing is this out of a much larger shift to risk.
Let's bring in Milton Bradley senior economist and market strategist at -- -- -- once again thanks for joining us.
So we have -- -- -- news of the -- IPO we had that huge bomb deal with Verizon is like 49 billion.
What is this telling us about the markets right now and and the investors say psyche.
I think it's two things one is there's a tremendous amount of liquidity in the -- remains in the market so.
Even as we anticipate the Fed tapering there's a lot of money to move around and there are a lot of people -- -- looking.
In the direction of risk so that's very good -- it it bodes well for this rally to continue the equity rally.
We've been enjoying this week.
The other thing that's happening here is because the Fed is talking about tapering people realize that we're probably seeing the lows and long yields.
For quite some time so there's a lot of people who deciding.
They're getting -- -- when the getting is good whether it's a bond sale -- IPO which of course will depend a lot on credit.
Are for those buying -- people are trying to get the lowest rates they possibly can.
Let's took about the tape -- next week what are you expecting from let's say that we get a 510 billion dollar cotton bomb but -- is.
Does -- -- it just to resolve that taken at its stride or if we get a slightly larger.
Copped an anticipated what happens then.
Well I think you're quite right and in the market well anticipates effectively tapering light.
-- it was signaled last June we had all the trouble already people are anticipating this five.
-- 510 maybe fifteen billion on slow down in the in the purchases of bonds I don't think the market we do very badly there may be a bad afternoon when it was first.
Announced but I don't think it would be taken very badly anything more than that.
Would look like the Fed is accelerating the trend and not on the market would probably take that badly we have a rerun of what happened late last June.
If that -- to occur I don't think it's particularly likely but if it were to occur.
-- work to a -- a buying opportunity what you think.
I would definitely think it would be a buying opportunity because even if the Fed were to go a little further than it they've said or implied.
There's still a tremendous amount of liquidity that is support the market with talking about purchases of 60000000070.
Billion maybe fifty billion even.
If they go -- -- still a great deal of liquidity support.
And the valuations.
Even on the market's done very well the valuations remain attractive.
Yet you say -- not drop dead gorgeous but they are still attractive.
What kind of -- you have on the S and -- Milton -- is -- do you think we're gonna move higher.
I don't have a target on the markets a year and -- I do you think we'll move higher they may still be a rough patch yet whether -- -- -- on the armed.
On the tapering announcement that could cause some trouble as we just described and we also have to go through this debate in congress over the continuing resolution in the debt ceiling.
Our guess is that they will agree to disagree and postpone the decision.
But -- this is debate is going on they'll be a lot of nervousness that'll cause some rough patches but by and -- the valuation the continued support from the Fed.
This market can end the year -- higher than it is today.
Very good Milton as -- thanks for joining us today as always.
-- like that.
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