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Santa Claus rally on hold - LexION Capital's Elle Kaplan

Friday, December 11, 2015 - 03:48

The typical December Santa Claus rally is on hold as investors weigh depressed oil prices and await a decision on interest rates from the Federal Reserve says LexION Capital's Elle Kaplan.

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US stocks under pressure at the oil prices hit a seven year low let's discuss this and more with Al Kaplan the alexion capital. Thanks so much for joining us well really appreciate it thank you for having me filled oiled let this situation continues to worsen and why markets reacting negatively when we had pretty positive retail sales data out today. Interesting there's a lot of that arise and that is creating uncertainty. So we do have a couple points of optimism. Like consumer confidence is up. But. With only ill at an all time. And there are estimates that it might hit twenty dollars. Bare all right on fourteen. And and some uncertainty about next week's bad decision to either raise or not rates interest rates. People are in Europe and we're seeing that the markets there's Brad across the board right now. Well peace is historically a great month for stocks. So it's at 10 o'clock rally on hold until the pit and me next week we get all of that more certainty in the markets. This Democrat about Fiat Claus rally has not made an appearance so art this year. Venus into where are you because now we we have not seen Nat it in. What is typically a pom Amman where we see lots of green the markets are up daily we're not getting that this year not just in the US. But the develop foreign markets are down the emerging markets are down. So across the board were really seeing losses and rat right now. There is hope that that that turns next week after the fat meats were anticipating. They'll raise rates sell if they do. Hopefully that'll of race some of the uncertainty and with less uncertainty and fear in the markets. Perhaps people will feel more positive put money back in and we'll start to see things turn. Let's talk about volatility. In the markets have been very volatile lately 96. Expect the volatility to set aside a little bit after December 16 won't get that decision. Or is volatility of this high level of volatility just the new normal going forward. Let's let's hope that a heightened volatility is not that new normal. I think that the market's anticipating that we'll finally raise rates after seven years of this historic Mears zero interest rate. So if that happened and people's. Expectations are backed. I think they'll be less volatility and we'll see things collide. Into the typical December Santa Claus rally however you know in the very small chance that the Fed does not raise rates all bets are off without. So what do you advise your right now through investing in the market. Well an investor doesn't wanna put money to work in the stock market last time ride in his lawn. Because. The market is unpredictable right so in typical December's. Things are Cong an upward sloping but not this December and because in the short term the markets are. Full of unknowns of surprises but in the long term in the past this upwards you never want to put money in the stock market. You can't afford to leave there for at least three years. So what are we we never encourage our investors to look in the short term. In terms of interest rates. They'll be lots of potential opportunities to make money when interest rates go up. And so we've we've been paying to be very careful attention to that that. And various interest rate currents in the bond market for some time. I'll leave it there thank you still. Think you. That's L Caplan feel like CNN capitol I'm sure yep greatly this is richter.

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Santa Claus rally on hold - LexION Capital's Elle Kaplan

Friday, December 11, 2015 - 03:48