David Westin, Bloomberg discussed on Balance of Power


Power with David Westin on Bloomberg radio and we're taking a look at equity markets up substantially the S. and P. is up four point three five percent right now as I look at the board and to take us through the markets explain whether we're gonna get a three peat out of this is macro man himself he's characterized from Bloomberg M. live markets blog so Cameron thanks for joining us but I get my hopes up here well I I think we the rally was sort of for constable in the sense that towards the end of of the month you often see pension funds rebalance their asset allocation particularly at the end of the quarter and pretty clearly we've had dramatic split in the performance of fixed income equity so I actually wrote a piece a couple days ago saying well Lou Republican going to get a rally here just as these guys sort of pop up their equity holdings and then maybe like all the better their other fixed income holdings I don't necessarily think it tells us very much about next week or the next month or the next in the next quarter unfortunately it's hard to see the day ahead these days is a pragmatic but but just on the topic of the equities is I look at it here the tenure that also they're buying ten years to write they're not just buying use yeah I mean it's it's there's there's a lot of obviously there's there's a lot of parts and we did have sort of a record a record jobless claims number earlier this year was that you know with my form some of the from the technical decisions so it what happened to the buy the rumor sell the fact because earlier today I must say I heard people on the air saying you know what the markets are pretty crazy right now because it's they're selling the the fact that it doesn't seem to be the case when you talk with a two trillion dollar package yes again I I think we beat out some of the numbers that have been thrown out the five the explosives rebounds and stuff are so large really bad yeah I get it I mean I thought one number the three hundred billion dollars in stock the box so the last week of the month so it's really a technical thing in that sense it's rebel exactly that's exactly right that's going to be right the reason is because you're such an expert on this are the markets working right now in this sense if the equity markets as opposed to be some sort of prediction of future earnings the corporations themselves are saying we have no clue so what are people trading on well I think that largely explains the the magnitude of all children because what we we know we know two things is that the center of the expected distribution of earnings for this year has shifted lower yes what it was before the the the code crisis and it shifted broader in terms of certainty I think race now but that I think is essentially what the stock market stock price is lower than the magnitude has shifted more wings are wild this was a wild okay thank you so much for joining us today it's bluebirds Cameron Christ coming up here we'll talk with Karen Harris of Paine who's been tracking the macro trends emerging from the crisis has come up with some interesting maybe even surprising results about how people.

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