Accommodative Policy: Accommodating Your Bets

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Oct. 4 (Bloomberg) -- Jefferies Chief Market Strategist David Zervos discusses his investment ideas with Trish Regan on Bloomberg Television's "Street Smart." (Source: Bloomberg)

You say you are not investing in europe.

Where do you like right now?

Is it the u.s., japan?

Basically those two.

We think it is a developed market trade.

Developed markets are effectively using one of those age-old tools of competitive valuation to get an edge up.

The japanese for sure are trying.

We think they are going to keep trying.

They have new wind behind their sales with mr.

Croda involved -- mr.

Kuroda involved.

And the u.s. surprised us with additional qe we did not think we were going to get.

September to december, they are staying with $85 billion.

Afterwards, an extra 250, which is a big deal.

More qe and no tapering for the foreseeable future?

I think that is probably fair to say.

And this is kind of good in a way?

Gridlock is good and brings on some easy money elixir that has been very good for at least the equity markets.

In other words, ben bernanke has to do his part because congress is not doing theirs.

Maybe it is not the best solution.

Maybe there is a better fiscal solution, but the second best is monetary policy.

Even though it does not work exactly the way we want, and helps those with capital more than those without capital, at the end of the day, we all know what the right trades are.

Monetary policy has driven markets.

The trade is really -- i think it is mostly an equity market.

We are inflating real assets, whether it is housing, equity capital, or commodities.

I am less excited about the commodity side.

Because emerging markets have been struggling?

You look back at where emerging markets struggle a bit.

It is also a time when developed markets are coming back.

The late 90's was a good time in the u.s. and europe.

It was a good time in japan, even after their crisis.

It was a terrible time in commodities.

I think there is a lot of look back to the late 1990's period.

We do not have the exciting story to jump on, like shale gas or european banks.

Click the numbers are mind- boggling.

It literally boggles my mind.

It is coming off of a fairly depressed level.

It is a good story.

But europe has done a lot of things right?

Lots to talk to you about.

Unreturned of italian class.

This text has been automatically generated. It may not be 100% accurate.

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