Expert breaks down economic outlook under Biden administration

[00:00:00] Speaker 1: THANK YOU FOR JOINING US. GOVERNMENT. ECONOMIC EXPANSION. GOLDMAN SACS RAISING ITS FORECAST FOR THE U.S. ECONOMY EYEING 6.6% GROWTH THIS YEAR, 4.5% UNEMPLOYMENT AS THE INCOMING BIDEN ADMINISTRATION FLOATS AT NEARLY $2 TRILLION STIMULUS PACKAGE. MEANTIME, CHINA ALREADY COMING BACK REPORTING 2.3% FOUR-YEAR GDP GROWTH FOR LAST YEAR, FOR 2020, THAT INCLUDES A 6.5% BUMP IN JUST THE LAST QUARTER. WE'VE BEEN AROUND THE COUNTRY AND WE'VE BEEN AROUND THE LAST YEAR AND WE'VE BEEN AROUND THE COUNTRY AND WE'VE BEEN AROUND THE COUNTRY AND WE'VE BEEN AROUND THE COUNTRY AND WE'VE BEEN AROUND THE COUNTRY AND WE'VE BEEN AROUND THE COUNTRY AND WE'VE BEEN AROUND THE COUNTRY AND WE'VE BEEN AROUND THE COUNTRY AND WE'VE BEEN AROUND THE COUNTRY AND WE'VE BEEN AROUND THE COUNTRY AND WE'VE BEEN AROUND THE COUNTRY AND WE'VE BEEN AROUND THE COUNTRY AND WE'VE BEEN AROUND THE COUNTRY AND WE'VE BEEN AROUND THE COUNTRY AND WE'VE BEEN AROUND THE COUNTRY AND WE'VE BEEN AROUND THE COUNTRY AND WE'VE BEEN AROUND THE DIRECTION FOR THE ECONOMY [00:00:55] Speaker 2: BUT HAVE THE MARKETS ALREADY FACTORED IN THAT KIND OF GROWTH FOR THE U.S. I THINK SO. LOOK, ONE OF THE BIGGEST THINGS WE'VE SEEN SO FAR THIS YEAR UNDER THE SURFACE IS THAT A LARGE CAP INTO MID CAP TO SMALL CAP. WE'VE BEEN AROUND THE DIFFERENT PANDEMIC, IT'S UP 10 CENTS FOR THE YEAR, OKAY? AND YOU START SEE SOME MID CAP AND SMALL CAP WHICH IS MORE DOMESTIC VERSUS MULTINATIONAL. SO I THINK THE MARKET'S BEEN STARTING PRICES IN LATE DECEMBER, NOW EARLY JANUARY. THE BIG IS NOT NECESSARILY BETTER. IN FACT, MONEY IS GOING INTO MORE DOMESTIC TYPE OF COMPANIES EXPECTING THIS, YOU KNOW, 6.5, THE GOVERNMENT SAID, 6.5% GDP, WHICH IS PRETTY EXTRAORDINARY AMOUNT OF GROWTH CONSIDERING [00:01:31] Speaker 1: WHERE WE WERE. [00:01:32] Speaker 3: WONDERING YOUR VIEWS ON WHAT THE SPATE OF REGULATIONS THAT THE BIDEN ADMINISTRATION IS GOING TO BE SPEWING FORTH, WHAT THAT WILL DO TO THE REAL GROWTH OF THE ECONOMY, ESPECIALLY NEW BUSINESS FORMATIONS AND THE LIKE. THE MARKET'S REALLY FACTORED THAT IN, THAT THEY CERTAINLY SLOWED THINGS DOWN DURING THE PRESIDENT OBAMA ADMINISTRATION. ARE WE GOING TO BE IN FOR A [00:01:55] Speaker ?: REPEAT OF THAT? [00:01:56] Speaker 2: STEVE, THERE'S A LOT OF SPEWING, THAT'S FOR SURE. I DON'T SEE A LOT OF THAT. I THINK WE HAVE TO BREAK THE PROGRAM. I THINK WE HAVE TO LOOK AT THE [00:02:04] Speaker ?: MARKET. [00:02:04] Speaker 2: THE MARKET IS LOOKING AT THE FIRST ACT, SO TO SPEAK, WHICH IS PRETTY GENEROUS. $2 TRILLION, THE FED BUYING ASSETS, FED FUND RATES AT ZERO. I THINK THAT'S THE FIRST ACT ALMOST LIKE THE HONEYMOON. AND, STEVE, TO YOUR POINT, DOWN THE ROAD, I'M NOT SURE THE MARKET IS FACTORED IN. THAT'S THE SECOND ACT, WHICH WILL BE MORE REGULATION, HIGHER INCOME TAXES, PERSONAL TAXES, CAPITAL GAINS TAXES, CORPORATE TAXES AND ALIKE. SO I THINK THAT'S WHERE WE HAVE TO KIND OF DIVIDE. AT THE MOMENT, THE MARKET IS KIND OF LOOKING AT THE FIRST ACT, BECAUSE YOU SEE THE 50-DAY MOVING AVERAGE, THE 200-DAY MOVING AVERAGE, THE MAJOR LEADING AVERAGES. ALL OF THEM ARE GOING HIGHER AT THE MOMENT, STEVE. YOU'RE RIGHT, THERE WILL BE A SEED CHANGE. BUT AT THE MOMENT, I THINK THE MARKET IS FLOODED WITH LIQUIDITY, AND THAT'S OVERRIDING SOME OF THE CONCERNS, WHICH I'M SURE WE'RE GOING TO HAVE TO DEAL WITH, WITH ALL THE REGULATIONS. [00:02:44] Speaker 1: BRIAN? [00:02:45] Speaker 4: YEAH, Ken, TALK ABOUT ENERGY FOR A SECOND. I'M READING THIS MORNING THAT THE BIDEN ADMINISTRATION IS CONSIDERING REVOKING THE PERMIT FOR THE KEYSTONE XL PIPELINE. WE'VE HEARD TALK ABOUT HIGHER GAS TAXES. WE KNOW THAT ENERGY REGULATION IS COMING. TO ME, THAT'S LIKE HITTING RIGHT AT THE BACKBONE OF THE U.S. ECONOMY, WHICH WOULD BE A GROWTH KILLER. DO YOU SEE SOME OF THOSE POLICIES SNEAKING UP ON THEIR PEOPLE THAT ARE GOING TO BE ABLE TO DO? WHAT IS THE BIDEN ADMINISTRATION [00:03:15] Speaker 2: IS GOING TO BE ABLE TO DO WITH THEM IN THEIR PEOPLE THAT ARE GOING TO BE ABLE TO DO WITH THEM IN THEIR PEOPLE THAT ARE GOING TO BE ABLE TO DO WITH THEM IN THEIR PEOPLE THAT ARE GOING TO BE ABLE TO DO WITH THEM IN THEIR PEOPLE THAT ARE GOING TO BE ABLE TO DO WITH THEM IN THEIR PEOPLE THAT ARE GOING TO BE ABLE TO DO WITH THEM IN THEIR PEOPLE THAT ARE GOING TO DO WITH THEM IN THE PEOPLE THAT ARE GOING TO THEM IN THEIR PEOPLE THAT ARE GOING TO DO WITH THEM IN THEIR IN THEIR PEOPLE THAT ARE GOING TO DO WITH THEM IN THEIR PEOPLE THAT ARE GOING TO DO WITH THEM IN THEIR PEOPLE THAT ARE GOING TO DO WITH THEM. JUST LIKE STEVE SAID MORE [00:03:39] Speaker ?: REGULATION. [00:03:39] Speaker 2: SO I THINK RIGHT NOW WE ARE LOOKING AT THE MARKET IS NOT REALLY FACTORING THOSE THINGS IN. I THINK IT IS GOING TO FACTOR THOSE IN. BUT RIGHT NOW WE ARE JUST SITTING WITH SO MUCH LIQUIDITY AND DRIVING UP ALL THE EV STOCKS THINGS THAT TRUMP DID TO HELP BREAK UP THE REGULATION AND GET COMPANIES TO START GROWING [00:03:54] Speaker ?: AGAIN. [00:03:54] Speaker 2: IT IS DEFINITELY GOING TO BE A [00:03:57] Speaker 1: HEADWIND, BRIAN, FOR SURE. THERE IS ALREADY A BILL THAT HAS BEEN PROPOSED AND THIS WAS LAST YEAR EVEN BEFORE THE PRESIDENTIAL ELECTION THAT MANDATES THAT YOU GET RID OF CARS WITH AN INTERNAL COMBUSTION ENGINE. MANDATES ALL ELECTRIC VEHICLES IN LITERALLY 15 YEARS. BEFORE YOU GO, KEN, EARNINGS SEASON IS UNDERWAY. THIS WEEK WE WILL HEAR FROM BANKS INCLUDING BANK OF AMERICA AND GOLDMAN SACHS AS WELL AS TECHNOLOGY STOCKS LIKE NETFLIX. WHAT ARE YOU EXPECTING IN TERMS OF BIG WINNERS POTENTIALLY THIS WEEK? SO I DON'T KNOW ABOUT THE [00:04:29] Speaker 2: BANKS. WE SAW JP MORGAN HAVE DECENT NUMBERS AND THEY SOLD OFF BECAUSE THEY'VE BEEN ON A TARE FOR THE LAST COUPLE MONTHS SINCE THE VACCINATION ROLL OUT. WE'VE SEEN A LOT OF MONEY COME OUT OF TECHNOLOGY INTO OTHER SECTORS INCLUDING BANKS. BUT YOU KNOW WHAT IT'S GOING TO BE ABOUT DANGING THIS TIME AROUND? I THINK THIS TIME AROUND THEY HAVE TO GIVE VISIBILITY ON WHAT THEY'RE GOING TO THINK ABOUT VISIBILITY. LAST YEAR WE GAVE THESE COMPANIES A PASS BECAUSE WITH THE PANDEMIC WE KNOW WHAT TO THINK AND THEY'RE ABLE TO SAY WELL WE DON'T HAVE VISIBILITY. BUT I THINK THIS TIME AROUND THOUGH THEY'LL HAVE TO GIVE VISIBILITY WHAT THEY'RE GOING TO THINK THAT'S GOING TO HAPPEN IN 2021. SO YEAH, FOURTH QUARTERS IN REARVIEW SO TO SPEAK. I WANT TO HEAR WHAT THEY HAVE TO SAY ABOUT GUIDANCE. I THINK GUIDANCE WILL BE THE [00:05:05] Speaker 1: KEY TO ALL THESE COMPANIES WE'LL SEE YOU, HAVE A GREAT WEEK, WE'LL SEE YOU VERY SOON. KEN Mahoney JOINING US.