I think it is a mistake that because we helped the wealthy we shouldnt do it. The reason they did it is because of that. If you dont lift up the economy, the people who suffer the most are the poor. The fed is thinking about how do we lift up the economy they shouldnt hurt a wealthy person to make them feel good. They are doing the right thing now which is to let them get through this there are going to be serious situations thats kind of a secretary dairy problem right now. We should get through this and kind of unwind some of this stuff wisely there are huge incomes you could have negative imcome tax, fix education there are a lot of things we should be doing to help the poor federal policy is not the thing they should focus on letting the economy grow they dont focus on Growth Strategies they have policies that dont help growth. If you had 1 growth in the United States over 10year period, that would be 4 trillion gdp thats like 10,000 a person extra. That pays for a lot of social sa
Debt. Joining us to discuss is a high veteran, Lehmann Livian Fridson Advisors chief Investment Officer martin fridson. I want to talk about this wave of downgrades we have had. Yet, itenomenal, and seems like we have not reached the apex. Do you anticipate more double and triple downgrades . Martin i think we will see that continue for some time. If is such a dramatic change in environment, it is taking a while to get through all the companies, but in addition to aat, some Companies Just had light switch turning off kind of change. Historically, you have some finance companies go down quickly if they lost their ability to borrow, they could sell quickly. Industrial companies historically have taken a long time to make the migration that we observed recently. 1100 basis points around march 23, and then we had a bit of easing. What do you see in terms of levels, spread wise, and default wise . Martin default will clearly rise. Defaults will clearly rise. We think double digits. The high
Course, 240 billion is enough according to Prime Minister robert Prime Minister abe. Lets take a look at where the gdb czar at this time. Saying it is not enough to lift inflation to 2 . At where the kiwi is right now, rising to a fourmonth high to the dollar. Lets have a look at what is going on with the indian market, all about reserve bank of india and they are expecting another cut. If we do get it, it will be the six straight cut. Somewheresome between 25 and 50 basis points. Some gains inee the indian market, looking at the rupee, a little pressure there at the moment. It is pretty much stable and ahead of that decision by the reserve bank of india, they tried to address sluggish growth , showingnomy expanding the weak us of growth we have seen since the beginning of 2013. To a Central Bank Governors elsewhere, we are talking about kuroda and the first word news. With theng in japan Prime Minister has announced a massive stimulus package, dealing with a slump in exports. Package
Showing outperformance for second day running. Totally different market. That is the key thing. These results, it has a different feel than basically the entire year until now. Up until that was all tack and all defense. Energy up, industrials up, materials up. Lets dive deeper into todays action. Scarlet im think about the reversal you were just talking about. Choppy Market Action on the week especially around momentum stocks. And this is around the 50 Day Moving Average. Earlier we came close to breaching that short term momentum indicator p take a look at this one and half year chart of the s p 500. Arranged all the uncertainty around the macro factors, stocks stuck in this giant rage and then the more narrow ranges between the 200 Day Moving Average in blue, the longer term buyers and in yellow the shortterm buyers. Last year the s p 500 stuck in between those moving averages, then making it about the 50 day, once below and then the 200 day average once that was sliced and ugly fou
Happy friday, welcome to power lunch. Im melissa lee. A look at the markets this hour. Its fairly quiet ahead the threeday weekend. Marginal gains for the dow which is up by three hequarters of a point. S p level. Nasdaq is up by two. All three indices up more than 1 for the week with the nasdaq leading gains. The defense stocks keep on rolling. Boeing, general dynamics, lockheed and northrop all at lifetime highs. Im courtney reagan. Here is what else is happening. The second reading of First Quarter gdp at 1. 2 despite beating estimates its the weakest reading since the First Quarter of 2016. On the economic front durable goods falling for the first time in five months dragged down by orders for transportation equipment. A new forecast from t11 to 17 named storms during this Hurricane Season that would be above normal. Courtney, welcome. Lets hope they are wrong. It is championship time. The Pittsburgh Penguins are heading to the stanley cup finals after an unbelievably dramatic game