john manley

john manley

U.S. santa rally can be trusted - Manley

9h ago
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U.S. SANTA RALLY CAN BE TRUSTED - MANLEY Wells Fargo Advantage Funds Chief Equity Strategist John Manley says he trusts this santa rally as it has the full faith and credibility of the Federal Reserve behind it. SHOWS: NEW YORK, USA (DECEMBER 22, 2014) (REUTERS - ACCESS ALL) 1. WELLS FARGO ADVANTAGE FUNDS, CHIEF EQUITY STRATEGIST, JOHN MANLEY, SAYING: JOURNALIST ASKING JOHN MANLEY: "Markets have been on fire this week following the Fed's commitment to take a 'patient' approach toward raising rates. Is this a Santa Claus rally here or is this more than a seasonal jostle?" MANLEY: "Well I believe in Santa Claus, so I think it is a Santa Claus rally in the sense, I think it is real, I mean someone asked me if I could trust it and I said yes it has the full faith and credibility of the Federal Reserve behind it. And the Fed is going to remain accommodative for a while. In one sense I am shocked but not surprised, I am shocked the market reacted so strongly to it because it really shouldn't be a surprise. The Fed is trying to help the economy and we stand between the Fed and the economy." JOURNALIST: "So what are some of the other fundamentals you think are at play here in the market?" MANLEY: "Well, a few things. First of all I still think most investors are distrustful of the market and I wouldn't say it is as keen as it was 2 or 3 years ago but there was less to be scared of in the West 2 or 3 years. I still think people remember what happened to them in '08 and '09 and they still deep in their heart of hearts fear that, so you have that sentiment. The earnings are still quite good, the earnings are coming in quite well. We have had an upward bias in earnings over the past 2 or 3 years on forward earnings, hasn't been that great in the last month or 2 but I think that is probably oil and the dollar and that is excusable and then the valuation, I don't know where the market should be valued but I will tell you, right now it is in the middle of its last 20 years band. So that is sort of in the middle, you ca...