Wall Street is having a hard time figuring out what to do now that the U.S. economy appears to be sputtering and yields are so low, Peter Yastrow, market strategist for Yastrow Origer, told CNBC.
"What we’ve got right now is almost near panic going on with money managers and people who are responsible for money," he said. "They can not find a yield and you just don’t want to be putting your money into commodities or things that are punts that might work out or they might not depending on what happens with the economy.
"We need to find real yield and real returns on these assets. You see bad data, you see Treasurys rally, you see all bonds and all fixed-income rally and then the people who are betting against the U.S. economy start getting bearish on stocks. That’s a huge mistake."
Stocks extended losses after the manufacturing fell below expectations in May and the private sector added only 38,000 jobs during the month.
"Interest rates are amazingly low and that, thanks to Ben Bernanke, is driving everything," Yastrow said. "We’re on the verge of a great, great depression. The [Federal Reserve] knows it.
"We have many, many homeowners that are totally underwater here and cannot get out from under. The technology frontier is limited right now. We definitely have an innovation slowdown and the economy’s gonna suffer."
However, he said he wouldn’t sell stocks.
"Any bears out there better be careful because the dividend yields on these stocks look awesome relative to all the other investment vehicles out there," Yastrow said. "So bears are going to have to find a new way to express their discontent with the U.S. economy."
142 Comments Total
COMMENTS
| keepsmokingit | Jun 1, 2011 11:20 AM ET |
We are on the cusp of a great great depression....but i wouldnt sell stocks---idiot
| deconstructionist | Jun 1, 2011 11:20 AM ET |
Frankly, I'm for anything that takes a big wet bite out of Wall Street.
Main Street health and Wall Street health are mutually exclusive and inversely proportional.
Main Street health and Wall Street health are mutually exclusive and inversely proportional.
| TellMeAnother | Jun 1, 2011 11:23 AM ET |
This has got to be one of the funniest stories I've ever seen on CNBC. After 2.7 trillion dollars speculative money handed to them, Wall Street is having a hard time figuring out what to do now? What a hoot. Didn't create a single job, didn't invest in the US, just bought silver, gold, oil and other commodoties, put money into the BRICS, not a dime was invested in the US and now they are wondering why the US economy is in trouble. LOL And thank you Ben, you've given us all a laugh today.
| techie_chick | Jun 1, 2011 11:24 AM ET |
Uh Duh!! When gas goes up over $1 in a year we all cut back on everything.. this effects everyone..
| DanP1966 | Jun 1, 2011 11:26 AM ET |
Time to buy land with a fresh water supply and keep a small arsenal of guns around.
No joke.
Sitting in a house that you are not paying on is all well and fine. BUT you still need food, water and a means of defending yourself when others cannot buy food, lack clean water and cannot keep warm.
This aint 1929. People do not live on the land or know how to hunt anymore. Nor do most young people have a clue about how to build or repair anything.
Hunger, fear, they can lead people to do crazy things that they might otherwise not do.
No joke.
Sitting in a house that you are not paying on is all well and fine. BUT you still need food, water and a means of defending yourself when others cannot buy food, lack clean water and cannot keep warm.
This aint 1929. People do not live on the land or know how to hunt anymore. Nor do most young people have a clue about how to build or repair anything.
Hunger, fear, they can lead people to do crazy things that they might otherwise not do.
| sezwhom2 | Jun 1, 2011 11:30 AM ET |
That headline is almost comical. Almost because it's sad. Living in a bubble.
| mktcynic | Jun 1, 2011 11:34 AM ET |
"Wall Street is having a hard time figuring it out", pretty much sums up the reason I am out of the stock market. Brilliant financial advisers in concert with the Fed and DC systematically fleeced me out of over $200K between 2000-2007.....never again. Never did like Atlantic City or Vegas.
I'll be damned if I'll ever give them my money again.
If these idiots living in their Ivory Towers ever went to a grocery store and filled up a cart or ever filled up a SUV or pickup at the gas station or drove around the country and witnessed all the half empty strip malls.........then, maybe then they could begin to "figure it out".
I'll be damned if I'll ever give them my money again.
If these idiots living in their Ivory Towers ever went to a grocery store and filled up a cart or ever filled up a SUV or pickup at the gas station or drove around the country and witnessed all the half empty strip malls.........then, maybe then they could begin to "figure it out".
| observation | Jun 1, 2011 11:36 AM ET |
The absurdity of this statement is simply unparalelled. I mean are we really expected to believe that wallstreet actually bought into the bs it was selling about QE? When virtually everyone else in america has been saying that this is exactly what was going to happen if bernanke went ahead with QE. Wallstreet is a crack addict and they will say or do anything for more crack. If you offered it a pipe of crack and told it "oh by the way, if you smoke this you're going to die". They would take the pipe and smoke it, willingly, eargerly. What is it about being a crack addict that bernanke and the fed don't understand. But unfortunately for the rest of us they didn't die. Now they just want more crack.
No comments:
Post a Comment