>> GAMESTOP WHICH CONTINUE TO
SOAR ON WALL STREET'S AND
TURNING BACK TO THE MAJOR
AVERAGES JOINING US NOW IS
SCOTT WREN SENIOR-LEVEL MARKET
STRATEGIST WELLS FARGO
INVESTMENT INSTITUTE, THANK YOU
SO MUCH FOR JOINING SO WHAT ARE
YOUR BIGGEST TAKE AWAY FROM
TODAY'S MARKET ACTIVITY.
>> WELL I THINK WE'RE AS WE
SHOW WE CLOSER TO NEW RECORD
HIGH. WE HAVE A FED MEETING
NEXT WEEK PEOPLE ARE WORRIED
ABOUT INFLATION OTHER
WORRIED ABOUT IF IT'S GOING TO
BE TRANSITORY US THE FED SAYS
WE THINK IT'S GOING TO DO SO
RIGHT NEXT YEAR OR THE QUESTION
IS GOING TO BE A 2, 3, 4, 5,
YEAR TYPE OF
AN ACCELERATION I ENVIRONMENT
SO I THINK FOR RIGHT THE
MARKET'S BEEN TREADING WATER TO
HIRE AND OBVIOUSLY WITH THE NEW
RECORD TODAY. BUT WE'VE QUIT
JUST GOING UP JUST
DRAMATICALLY AND SO I THINK
WE'RE GOING TO PROBABLY SETTLE
IN HERE. WE'RE GOING TO SEE
WHAT THE FED HAS TO SAY ON
WEDNESDAY AND WE'RE GOING TO GO
FROM THERE.
>> HE'S GOT ITS KRISTEN SCHOLER
WE HAD SOME TECHNICAL
DIFFICULTIES THERE, BUT WE'RE
HAPPY TO HAVE YOU ON THE SHOW
THIS AFTERNOON AND LOOK AT
RECORD HIGHS FOR THE S AND P
500 WE WELL ABSOLUTELY TAKE
THAT INFLATION CONCERNS SEEM TO
BE TAKING
A BIT OF A VACCINE. BUT WHEN
YOU LOOK AT THE OVERALL
DIRECTION OF THIS MARKET IS IT
ONE THAT CAN CONTINUE TO SET
NEW RECORDS.
>> WELL CHRISTIAN FOR US WE'RE
LOOKING FOR
45 HUNT THERE IS THE MIDPOINT
OF OUR TARGET BRAINTREE SO
THAT'S ABOUT
6% HIGHER THAN WHERE WE ARE NOW
SO I THINK THERE'S GOING TO BE
SOME OPPORTUNITIES. I THINK
PROBABLY INFLATION FEARS THAT
SOME POINT ARE PROBABLY GOING
TO PERCENT STOPPER GENITTI'S
MAYBE HAVE THE MARKET TRADE OFF
A
LITTLE BIT. BUT BUT I THINK THE
MARKET'S PRETTY CONVINCED THIS
INFLATION IS NOT GOING TO BE
STICKING AROUND FOR MORE THAN
MAYBE 12 MONTHS SOMETHING LIKE
THAT WILL BE TO CELERY AND SO
WE CERTAINLY THINK YOU CAN SET
SOME NEW HIGHS NOT ONLY THIS
YEAR, BUT IN
2022 AS WELL.
>> OKAY WELL WE WILL HEAR FROM
THE FED NEXT WEEK AT MAJOR
QUESTIONS WILL IT START LAYING
THE
GROUNDWORK FOR RATE RISES OR
TAPERING RIGHT WE SAW THAT
INFAMOUS TAPER TANTRUM IN THE
WAKE OF
THE 20 AT 2008 FINANCIAL CRISIS
CAME A FEW YEARS LATER BUT I
THINK PEOPLE ARE TRYING
TO PLAN THEIR PORTFOLIOS AROUND
THAT AND WHEN THAT MOMENT WILL
IT COME. WHAT DO YOU ANTICIPATE
THAT WE HEAR FROM THE FED NEXT
WEEK ONE WHEN INVESTORS NEED TO
HEAR.
>> WELL WE DON'T THINK THAT
IT'S GOING TO BE NEXT WEEK WHEN
THEY START TELLING US THEY'RE
THINKING ABOUT THINKING ABOUT
TAPERING ITS THAT'S PROBABLY
GOING TO BE MAYBE SOME TIME IN
THE FALL MAYBE SEE THE JACKSON
HOLE, BUT BUT PROBABLY A LITTLE
BIT AFTER THAT SO I DON'T THINK
WE
CAN EXPECT TO HEAR MUCH OUT OF
THE FED I THINK WHAT THEY'RE
GOING TO DO IS BASICALLY
REITERATED
THE STANCE THEY HAVE THEY HAVE
TO THINK ABOUT THEIR
CREDIBILITY THAT TAPE CAN'T GO
FROM ONE MEETING SAYING
YOU KNOW WE'RE ALL AND WE'RE
GOING TO PROTECT US RECOVERY,
WE'RE NOT GOING TO DO ANYTHING
ABOUT RATES FOR A LONG TIME TO
JUST ONE MEETING LATER
THEN STARTING TO TO CHANGE
SOMETHING SO THEY'RE CLEARLY
YOU KNOW THERE'S A GOOD
RATIONAL ARGUMENT TO BE MADE.
IF IF ECONOMIC GROWTH IS GOING
TO BE A STRONG AS WE THINK IT
IS THIS YEAR WHICH IS ABOUT 7%.
PROBABLY NORTH OF 4% NEXT
SHOULD THEY BE AND BUY A
120 BILLION DOLLARS FOR BOMBS
AND YOU CAN MAKE A PRETTY
RATIONAL ON BUT THAT SAYS THEY
SHOULDN'T BUT THEY'RE GOING TO
BE VERY CAREFUL THAT THE MARKET
IT'S GOING TO BE LISTENING, BUT
THEY'RE NOT WE'RE NOT GOING TO
GET ANY NEWS ON THAT WE DON'T
THINK
IN JUNE.
>> IT IS INTERESTING THAT
YOU'RE ANTICIPATING GDP GROWTH
OF 7% THIS YEAR THAT'S EVEN
ABOVE WHAT WE'VE SEEN SO FAR IT
SEEMS LIKE MOST OF THE CALLS
COALESCE AROUND A 6% GDP
GROWTH RATE. SO IT'S
INTERESTING TO SEE THE
OPTIMISTIC ON THAT FRONT I
THINK THE BIG QUESTION IS HOW
DO WE GET PEOPLE BACK TO WORK
AND CURIOUS WHERE YOU SEE
UNEMPLOYMENT AT THE END OF
THIS YEAR AND HOW LONG IT WILL
TAKE FOR US TO RECOUP STILL
7.6. A MILLION JOBS THAT WE'RE
SHY OF SINCE PRE PANDEMIC.
>> WELL WE THINK THE
UNEMPLOYMENT RATES COULD BE
BELOW 5% AT THE END OF THIS
YEAR. SO WE CONTINUE TO
SEE IT WORKING LOWER. AND
CERTAINLY YOU KNOW THE
LOCKDOWNS HAVE OBVIOUSLY BEEN A
HUGE
THAT WIND. I THE JOLTS YOU KNOW
YOU KNOW SHOW THAT
THERE'S A LOT OF JOB OPENINGS I
THINK IF YOU TALK TO A LOT OF
SMALL BUSINESS PEOPLE WHICH I
DO ALL THAT THEY'RE HAVING A
REALLY TOUGH TIME FINDING
EMPLOYEES NOW MANY OF THOSE
WOULD BLAME IT ON THE JOBLESS
BENEFITS THAT MANY STATES ARE
GOING TO BE BACKING AWAY FROM
HERE OVER THE NEXT FEW WEEKS OR
THE NEXT MONTH OR 2.
THEY ALL EXPIRE IN SEPTEMBER.
SO YOU KNOW IT'S LIKELY THAT WE
SEE A SURGE IN HIRING.
ANYBODY IN THE SERVICES
INDUSTRY RESTAURANTS, BARS
LEISURE LIKE HOTELS,
THEY'RE ALL A TOUGH THEY ALL
SAID THE SAME THING ALL
CLAIMING IT VIRTUALLY ON THE
SAME SAYING THANKS SO WE'LL SEE
WHAT HAPPENS HERE. BUT WE
CERTAINLY EXPECT MORE PEOPLE
WILL BE WORKING CONSUMER
SPENDING TO REMAIN STRONG.
AND OF COURSE AFTER A 70% OF
THE ECONOMY THAT'S WHAT WE NEED
WE NEED CONFIDENT CONSUMERS WHO
HAVE JOBS OUT THERE SPENDING
MONEY WE THINK THAT'S GOING TO
HAPPEN.
>> AND LET'S TALK ABOUT SOME OF
THESE OPPORTUNITIES YOU
MENTIONED TO PLAY
THE INFLATION GREAT KNOWING
THAT AT LEAST FOR THE NEXT
YEAR. SO WE MAY CONTINUE TO SEE
SOME OF THESE HIGHER PRICES,
YES BECAUSE A LABOR SHORTAGE,
YES BECAUSE OF JUST A LACK OF
WHY AND GLOBAL SUPPLY
CONSTRAINTS THAT WE SEE IN HIM
OF COURSE THE PENT-UP DEMAND.
HOW DO YOU PLAY THAT IN THE
STOCK MARKET.
>> WELL I THINK FOR ONE THING
YOU HAVE TO BELIEVE THAT WE'RE
GOING TO HAVE A CONTINUATION OF
THE RECOVERY HERE AND
A CONTINUATION GLOBALLY US IS
DRAGGING THE REST OF THE WORLD
OUT OF THIS RECESSION, THAT'S
WHAT USUALLY HAS
AND WE LIKE THINGS LIKE
INDUSTRIALS MATERIALS ENTER GEE
ALL
OBVIOUSLY VERY SENSITIVE
THE GROWTH OF THE ECONOMY WE
LIKE FINANCIALS AND WE STILL
HAVE EVEN THOUGH WE'RE.
EVEN WAIT ON TECHNOLOGY WERE
EVEN WAY ON THE CONSUMER
DISCRETIONARY SECTOR, WE JUST
MOVED TO THOSE 2 RANKINGS
THEY'VE DONE REALLY WELL FOR A
LONG TIME OBVIOUSLY GROWTH THE
SECTOR LIKE
COMMUNICATION, SIR, THIS WE
STILL EXPECT THAT TO OUTPERFORM
AS WELL SO TRYING TO GET A MIX
OF OF CYCLICAL SEC.
THERE'S BUT THEN ALSO YOU KNOW
WE WANT FULL OUT AND TELL A
CAGE SONS TO THESE GROWTH
SECTORS BECAUSE YOU KNOW
THE MARKET IS NOT GOING TO KEEP
MAKING NEW RECORD HIGHS IF THE
TECH SECTOR DOESN'T
PARTICIPATE. THAT'S FOR SURE SO
WE WANT SOME GROWTH BUT WE
THINK CYCLICAL SECTORS ARE THE
WAY TO REALLY
WE TOWARD.
>> OR WHAT CAN YOU WHAT SCOTT
ONE MORE QUESTION BEFORE I LET
YOU GO YOU SEE THE PRESIDENT
OVER THERE IN EUROPE, HIS FIRST
FOREIGN TRIP IN
AND WHAT.
>> CITED IS MORE THAN A YEAR
AFTER THIS GLOBAL PANDEMIC NOT
WORRY MASKS GROUP READING
EACH OTHER RE STORING SOME OF
THE U.S. IS RELATIONSHIPS
WITH OUR ALLIES CERTAINLY
ACROSS THE POND AND REALLY
ACROSS.
>> THE WORLD WHEN YOU LOOK AT
THE GLOBAL.
>> INVESTING LANDSCAPE ALWAYS
HERE TO HAVE A DIVERSIFIED
PORTFOLIO OUTSIDE OF THE U.S.
WHAT OTHER MARKETS ARE YOU
INTERESTED IN AND WHY.
>> WELL WE LIKE MERGING MARKETS
AND REALLY IF YOU LOOK AT
WHATEVER INDEX YOU LOOK AT THE
TRACKS EMERGING MARKETS.
BAKE THE
BIGGEST NAMES OUR CHINA SOUTH
KOREA AND TAIWAN THEY'RE ALL
DOING REALLY WELL.
WE EXPECT THEM TO CONTINUE TO
DO
MANUFACTURING IN THOSE
COUNTRIES IS GOING TO AND JUST
CLOSED GROWTH IN GLOBAL TRADE
WHICH IS BOUNCING BACK AS
QUICKLY AS THE SUPPLY CHAIN CAN
ALLOW SO
IF IF IF YOU WANT TO LOOK
INTERNATIONALLY WE'RE NOT ALL
THAT FAVORABLE IN THE
MARKETS OUTSIDE OF THE U.S.
ABOUT EMERGING MARKETS WE ARE
LARGELY BECAUSE OF THOSE 3, 3,
BIG NAMES AND HOW WELL THEY'RE
DOING IN THIS POST PANDEMIC ARE