Also in this playlist...
This transcript is automatically generated
While some are predicting a double dip recession you're next guest thinks the recent economic slowdown is temporary.
Joining me now today's market may have been -- -- chief investment offers different have a -- trust.
I gotta tell you Hank.
Temporary transit touring we keep hearing these words and yet it feels like many Americans there's been a 234 -- debacle.
How come you -- so confident that this is this -- -- Well first of all in any economic recovery or expansion it's very normal have soft patches.
We have a soft patch during the recovery last summer and it looks like we're having a soft patch now -- for a quarter two.
As we are in the expansion phase and it shouldn't be too surprising given that we've had a significant rise in energy costs.
Given that natural disaster in Japan and given though.
The extreme weather that we have now all of those.
Are rather transient are cyclical factors so all while it is having an impact near term.
We do expect better growth in the second half but still below where we should be given.
Given how much -- -- stimulus has been put into this market.
-- -- Now you've explained why some things are transitory.
But what's the good part of this economy can I gotta tell you you know I'm looking at new orders whether some bias and more than regional fed you know regions.
Or some of the other Dana what's the good story out there.
Well -- right almost every.
Economic data point in the past couple weeks has shown some softness.
-- but the real story here is corporate profits which continue to be very strong.
On the heels of tremendous productivity and we saw that even today with the jobless claims coming down a little less than expected because of productivity.
So off from a market -- standpoint that's the real story is corporate profits and very attractive valuations.
And we do have an expanding economy not a contracting economy so that's usually pretty good for shareholders.
OK now -- can't -- when it comes to our profits with respected to corporations because.
-- think he has a corporate profits to me that means okay multinationals.
Doing very well from emerging world that wants what we have.
And then you talk about productivity -- what's amazing euphemism is that they part everyone in America that they could -- so we do have a disconnect right.
Between the stock market -- Wall Street and main street here.
But -- -- it's not just the cost cutting via.
Headcount reduction others can also tremendous productivity in terms of implementation of technology.
And that is a -- ongoing long term secular trend but it's a combination of both.
Let's talk about the role of the Federal Reserve because a lot of people going back to last Friday's session went right you could've argued the market could have been down a 10200 -- is that we were up.
It seems like -- conventional wisdom has shifted that perhaps QE3 is on the table how do you feel about the Fed's role so far.
Well actually we think the Fed is done.
Just about everything right starting from the fall of oh wait through 09 and then with QE2 in 2000.
In the summer of 2010.
Which was really.
Not so much all for keeping interest rates -- because actually interest rates came up after that announcement.
All but rather to instill confidence so we think the Fed has done the heavy lifting here.
What we need now is better fiscal policy in terms of -- more pro growth tax of all policy may be a reduction in corporate taxes.
Allowing repatriation of foreign earnings and we have to start ending the regulatory or -- that's going on.
In all all bureaucracies and government agencies in Washington DC you know that.
That would be great to of great help.
And here you know Hank I gotta tell you when you started thing in a phrase that the Fed I was gonna say don't go to any Tea Party soon but now you just run -- a -- a list of things that.
I think a lot of people would agree makes sense but here's -- here's the question though.
And we only have a minute.
Did the president just announced another sect commerce secretary and it was based mostly the criteria on him being an environmentalist.
Do you see this administration turning around some of their policies to be.
-- more friendly toward business.
Well who look -- were approaching an election year.
And it -- -- it's not very good for sitting administration's to have the employment picture the way we have it.
And GDP -- did he accelerate so we might get surprised.
We might get a few positive surprises from the administration.
You -- is a lot of great information -- -- -- come back soon we really appreciate --
Filter by section