john manley

john manley

Always a little worried about Fed and taper - John Manley

1mo ago
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ALWAYS A LITTLE WORRIED ABOUT FED AND TAPER - JOHN MANLEY ANCHOR (OFF-CAMERA) ENGLISH SAYING: What about the correlation between the Fed and their tapering back? I mean, the market is growing so much because of the Fed support. Right. You've got to be a little bit worried...? JOHN MANLEY, CHIEF INVESTMENT STRATEGIST, WELLS FARGO ADVANTAGE FUNDS (ENGLISH) SAYING: I'm always a little bit worried, but I mean, the point is they're only taking away what isn't needed anymore. Just listen to what they say. When the Fed says, when Chair Yellen says we don't want to restrain the economy, she's probably actually broadcasting they're not going to raise rates for another year or two. Think of what the Fed is trying to do. The Fed is trying to remove unneeded stimulus. While they're trying to keep their pressure as what it was before, this relates to what the economy needs. It's not where the rate is. It's not how much the money the Fed is giving the economy, it's where the rate is versus what the economy is neutral. at It's how much money we're giving the economy or they're giving the economy versus what it wants. And they're not changing that. The economy is getting better, they're giving it less stimulus. That doesn't mean they're tightening, they're just as accommodative as they ever were. ANCHOR (OFF-CAMERA) ENGLISH SAYING: So then what's a realistic return on this market? JOHN MANLEY, CHIEF INVESTMENT STRATEGIST, WELLS FARGO ADVANTAGE FUNDS (ENGLISH) SAYING: You know, over a long period of time, I think it's mid to high single digits, they'd be happy with that. But I still think they can get to 2,000 very easily on the S&P by the end of the year. If we're looking at $125 in earnings at the end of this year for next year, which is very easy at this point in time, and we put an average, a slightly sub-average multiple 16 times. You know, you do the math, we're at 2,000. ANCHOR (OFF-CAMERA) ENGLISH SAYING: So how dependent is this market then on the economy and sort of maintaining at least this level of growth? JOHN MANLEY, CHIE...