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Expect Rate Cuts, Not A Recession: Fund Managers Most Bullish On Stocks In Over 2 Years - Invesco DB Commodity Index Tracking Fund (ARCA:DBC), Real Estate Select Sector SPDR Fund (The) (ARCA:XLRE)
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Expect Rate Cuts, Not Recession: Fund Managers Most Bullish On Stocks In Over 2 Years
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happening in europe, with angela merkel pulling back from a long-term solution. will we continue to have increasing volatility as europe rocks back and forth and doesn t reach a solution and france is heading into an election cycle with the socialists challenging sarkozy. is it possible we will not have a real solution to not only greece but the rest of what s happening in europe? yeah. i don t think there really will be a this is finally it, this is the thing that will fix everything type of issue. there are structures they re trying to put in place in europe that will be there in case there is a crisis. but people will still be wondering will there really be a precipitating crisis? will the structures hold? a lot of people would like to, you know, buy stocks. they re looking to corporate profits which have not been great so far but are still pretty good. they would like to be in the market. because they re worried of tail risks, the sense that any moment there might be something
exposed. from bad mortgage underwriting to certain bad accounting and gaps in the regulatory system. some of those things are not there today. it s very different if it happens. what is the danger from municipal default by a state, california, new jersey, or low calty or this one from the complexity. you have a large people who come into congress from the tea party who say the one thing they are sure of, there are no bailouts. is there what people would call tail risks, some risk that you have pressure on some u.s. state or city and the federal government actually doesn t come through because of this anti-bailout atmosphere in congress? so, completely separate the states from municipalities. states have a lot of wherewithal, when you talk about the huge deficit, the deficit in california is equal to 1% of the gdp in california. if they raise taxes 1%, they