The Fed has no reason to be aggressive right now: Investment adviser

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The Fed has no reason to be aggressive right now: Investment adviser
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The Fed has no reason to be aggressive right now: Investment adviser
Atomic advisors, founder and president Mark Avalon Market to see it this morning, thanks very much for joining us good morning. Your thoughts as the president travels abroad today and it’s good for the president to take a break little bit of a reset after the hectic midterms that contentious press conference. This is what a lot of presidents have done just to recalibrate for the second half of their term. I think his in his favor is that a lot of these European leaders are less popular than he is macron is in the 20 % merkel’s reeling from her migrant crisis. Prime minister May is struggling with British exit from the EU to the president on a relative basis is very strong going into this. The EU economy is not nearly as strong as ours, so it’s a great opportunity for him to inch forward on some of those trade skirmishes that we’re having with the EU cuz. If I think, if he can’t own those down, it’s going to be a big plus for the US market at the end of the day, the only party we’re having a trade Skirmish with is China. That’S good for you at stock, the market likes having the uncertainty behind it. So I know now we can focus get back to the economy in earnings charge anything that really surprises the market. What what upsets markets is something foreign since the FED raising rates 50 basis points versus 25 basis points which I believe is already baked in. So, as long as we have no major surprises coming out of Washington, we focus on find me an earnings and that’s a good thing: cuz the shareholder, seeing increased stock price. Let’S really what we want! That’S why I think Mark is going to Rally into the end of the year yield yesterday closing at the Hyatt level since May 2011, so the 10-year yield close it 3.23 %. I know the old saw, but it’s so low compared to Washington, with the Democrats controlling the house, President Trump and the Republicans in the Senate, are they going to spend even more money? If are they going to do a giant infrastructure deal that involved $ 2 annual budget deficits? I think that that can move against you and move against you really quickly. Offense of longer-term spiking and even 4 % would be very dangerous for the stock market disruption in equities. Once you see that kind of move markets this morning by the way take a look future pointing to a lower opening. My meeting was no surprise there. We are expecting that are well, I think, with the feds going to they have all the power right now. If the FED tones it down a little bit and let the US economy run, I think the stock market continues here. Boyfriend has no reason to be aggressive right now. You mentioned the bear Market in oil earlier and delete. The oil Market is down 20 % from its peak. That’S telling you something about global growth overseas. We don’t need the FED to put the brakes on the recovery. We’Re having here, I’m not going to be good for American workers that are finally participating in this economic rally. So I think if the FED just tones it down and let things run, it doesn’t become an adversary for stock. I think stocks have some room here in these next two years with a new makeup of Congress is automatic programmatic spending and you see States expanding Medicaid their there. There’S a lot of thing. That’S going to go on in Washington DC, including your homestead in Utah, and you know how they’re paying for it raising the sales tax right. So that’s four! A hundred and 38 % of the poverty line so again they’re hitting the poor to help pay for it. That doesn’t make any sense at all. You pass up that deal not saying it necessarily supportive, but that was the pitch. The voters and it didn’t pass turn order to spend a dollar there on infrastructure use the money elsewhere. There were a hundred and twenty thousand additional federal workers. Do you think that the education was better Social Security checks? No, we did not thousands of pages of new Federal Regulation. Politicians at the federal level. Yesterday, the voters in California in place a higher gas tax, Push by the Democrats and Governor Jerry Brown’s, so they said Bring It On the structure they have and they will Disney earnings. This morning they were better than expected. Last night dissipated streaming service last night, which it helps to compete with streaming. This is really a forward-looking Visionary strategy that uygur has in place they’re willing to take on Netflix, and they understand that’s where the markets going and look what the market valuations done to Netflix. That is where it’s going and you also look at their legacy. Businesses. The studios are so strong in the pipeline for next year. It’S like an All-Star lineup. Is it’s almost impossible for next year to not be big at the studio for Disney and the theme parks were strong this year. The rate hikes held nicely in Revenue was so they have a a multi-pronged strategy that positions them incredibly well. I have high confidence in management executing it and, yes, I think, they’re in the right space at the right time, all the streaming service to Netflix and Netflix at these levels, 19 times earnings Netflix, roughly a hundred and ten times because of some of the things that They do when you start watching program and all of a sudden they start charging you more for watching light programming. You look at your bill. Star Wars, Star Wars, TV streaming, service is glitchy to say, though, if it to say the least,
Potomac Wealth Advisors President Mark Avallone on the state of the markets and Disney’s fourth-quarter results.

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