Jan 11, 2013|
Stock Talk - Michael Brush, MSN Money
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Didn't -- the financial exchanged jokes out of doing it for Barry Armstrong alongside. June night. And we are now joined by Michael brush from MSN money -- up on stocks dot com and Michael how are you this morning. Hey good morning that you. You play Annette island music are very. We are I actually was not invited down to -- via -- Armstrong compounds -- We are staying here and joining the the balmy weather of eastern Massachusetts. Not certainly not should be nice over the weekend for the pats game but let's get into law. To what you're looking over the course of 2013 your latest article now available on line the seven big developments of 2013. The first one that that I see here is that EUC stocks advancing and winning over investors. I think so I think this you know. Markets in and persist on negativism. And and skeptical. Skeptical ideas about things and and that's where you are so you know and that's helpful market's progress and then there's space where. They purchase because they've finally win over equal to more bullish stance and it kind of more than mass population. I think that'll be you're. This will be the year that it. I think that'll that'll created nice advance. And the second thing that you're looking for here that probably has something to do with this. Is you see companies finally unleashing some of that cash they've been sitting on we've been waiting for this for the last couple years we know by now. Companies are sitting on a ton of cash on their books why do you see this happening. Well if you if you took that on the numbers you concede that. Spending has been. Really low at about 6% of sales. And this historical ranges up -- So something's gotta give work under an -- -- the other number that thing is that. Where capacity utilization. 78%. And economists at 8% as full capacity Edwards -- 80%. Then you get our acts and and production problems and so forth so both those numbers and by the way its economy even. Or 2% will 8080% at city so in other words you have to regions where companies are we gonna have little choice but to spend. You know I spent like action thirteen pages just -- -- active. Talking with Michael brush of MSN money and up on stock stock to common Michael. The third thing -- that you talk about in this article is you finally see emerging markets start to outperform again this year. I think so you know this is where growth is in the world -- have a lot of money in emerging markets to long term I don't traded a much equipment down you know needed you know -- It now and the key here is that central banks have been cutting interest rates need. Monetary policy. Been doing it for about six months that you expect -- -- and so. Probably at the beginning of the second quarter it will release he -- to expect. And another trend that UC continuing in 2013. Is bank stocks continuing to come back from there it was obviously the big stories over last year. Bank of America making the biggest move go all the way back over ten dollars now closed -- dollars a share do you see this across the board here. Ever regret regret that at 67. Dollars back in. Elevenths that's been a great former. I was early on the bank all of the credit -- People still hate the banks would opt for group west I realized that generally -- eight -- state you know there's just so we are a -- -- So you have. -- and it franchise thanks. City Stanley Goldman. Trading below book value JPMorgan Chase and you know that's right that's an issue at some point and I think that continue to change in and. Now we've been talking a lot about the good things that you're expecting in the market over this year you also now say that. Familiar ghosts are going to continue to spook the markets this year -- so what types of scares do you project we will see over the course of 2013. -- really out on -- -- on this call but I'll stick with apparently no one other person. On this and I ask you about this but we have two major -- aren't coming. March 1 they didn't really do much salt as well so not. Changed that much. We shall we have the debt ceiling which was huge issue in the -- 2011. And we did he didn't addresses and sequestration spending cuts they just put to death march 1 obviously taken part that second. But they've got a debt ceiling and I think looking around now -- Ian are where I think this will build a new issue and hurt stock so I think. Right now wouldn't be too aggressive buying by art art ward is back Malone on the opposite schools have been moments I don't mind that. Still talking with Michael brush from MSN money and up on stocks dot com and Michael. The the six point -- -- you're saying that you do project tensions around that Iranian nuclear program to start heating up what could this mean. For the energy markets in particular since obviously they're in a very sensitive region of the world. Yes you know I don't think CP. -- strike Carter and but I think it's a and denounced progress or report -- but it made progress in in producing an effort enrich uranium to two. Missiles and I think that worries about debt you know Odyssey. That's where prices. And I think going to be a temporary matter but I think that comes back to arm and I think is good reminder that -- that -- should shots it is kind of in the court sector here but I think it's. And I mentioned by the -- and all these. -- -- And now this last point here and this one is this one's controversial there there -- people on both sides the current here. You're saying you're seeing a potential spike of gold at 2200 announced it was a little reason for optimism on goal. Yeah and it's also controversial as the country goes against a lot of there are forecast to -- strength in the economy. In the stock market but. 22 and two are gonna think at some point we get fears that -- that make people -- practical because words about inflation and -- -- currency and financial soundness of the US. You know at -- Europe is gonna let that happen. By the -- -- it was issue. Or US you know USQ it is more QB it is and there's. Greater extension of QB but -- -- partner -- I think approach these -- and it's not 100. All right well Michael I appreciate you coming -- with us this morning and thank you again we will check in with you next week. All right that was Michael -- from MS and money and up on stocks dot com. Coming up we are going to be joined by Larry Kudlow from CNBC talk about some of the big things he's expecting over the next couple months in the market. That's next right after this on the financial exchange.