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Belpointe's Nelson: Fed is back in the bunker

Tuesday, June 21, 2016 - 03:10

David Nelson, Chief Strategist at Belpointe Asset Management talks with Bobbi Rebell about why the markets fell back after Yellen's comments to congress and what investors should look for this summer.

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Janet Yellen speaking before congress today and a market did not like what they heard David Nelson is chief strategist at elk point. Andy's here with more about what mattered. To investors and what Janet Yellen said today nice to see you nice to see you. So tell you why they have the negative reaction why don't we pare back the gains. I thought the testimony it was rather stark unusual for firfer cheers yellen. It's pretty clear at least for from my perspective that the Federal Reserve is back in the bunker I think the recent data the jobs report earlier this month kind of shook her up. And they're taking a step back and we'll see what's the parade of fed officials say as they come out which they typically do some will be speaking their own mind. It hit the Fed tends to not speak with one voice this season despite a lot. But I thought it was a very cautious and cautious tone today and it was very evident that. Testimony what do you think the markets didn't like specifically to they feel that were kind of past the window that two to raise rates could. There are I I think we've probably already been through that I think clearly after if the list decision to market reacted to that. It very cautious about the economy and effective want to raise rates all the dots moved. On that so I doubt that was I doubt that was it maybe is discus and give give back from from yesterday's over exuberant rally about the breaks it vote. Coming on now on Thursday. It's the market's kind of just meandering around today it's not really moving great release list in my with a minor. So the let me ask you what you think it is that will give the market direction this summer what are going to be key catalyst to. Of the one thing that we need we need earnings. And one of the things that came out of the testimony it was first time I've heard talk about financial engineering and I think the Fed has been complicit here because. A lot of companies are not spending their money and not investing in aren't even on investing capex and the next leg of the bull market it's gonna have to be led by that. This incessant. Time after time these these buybacks and stock. Do nothing. Four for sales and it slows down the company in the long run you turn like into an IBM. And it certainly doesn't help the economy so we gotta get hearings. Atlanta also the practice pastor later this week and without yeah. You concerned about her action she sees a stumble you know like you seem to be. Very cautious with the words it's pretty clear she doesn't wanna see you breaks it. Most economists economists believe it would be negative for the markets. But she also says she didn't want to venture in opinions very care very political human and talk to. And just found what surprised after that. I think. Look trying to play around the race it is going to be very difficult you know. If you think things. In here one of the things like right now defense doctor that you can do well regardless of what happens with the breaks it because it's pretty clear in the election. Both sides of both Republicans and Democrats want higher prices so. Think thematic don't hide in a bunker and choose one stock at a time to. Think he's faced. I think take it now since it's. Like well this is like.

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Belpointe's Nelson: Fed is back in the bunker

Tuesday, June 21, 2016 - 03:10