Why the Stock Market Is Going Sideways This Year

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April 11 (Bloomberg) -- Jurrien Timmer, director of market research at Fidelity Management, talks with Tom Keene about the Nasdaq selloff and his market outlook for the rest of his year on Bloomberg Television’s “Bloomberg Surveillance.”

They certainly become more global, and they become more complicated of course, but they're still buying and selling at the end of the day.

I send a note to our team that we're are not talking about a massive selloff, never lose us there is no real damage.

Do you make note at fidelity of the bifurcation of the market, the blue chips doing well in every thing else gets hammered?

Yes.

What we're seeing is a massive rotation right now.

The market until yesterday, the s&p started it 1845, and is that 1845 through month later.

My sense is we will stay there for me the next six months, so this is going to be one of these consolidation years like 1994 was.

Not for bonds buffered equities.

Usually when things are quiet on the surface, there is a lot going on under the surface.

I have got to reallocate my cash this week.

I am 100% in cash.

There is the momentum selloff as the nasdaq rolls over.

Jurrien, should people be doing things in their portfolio over the weekend, or are we supposed to have patience?

I love when you guys say we need patience.

If you are a typical investor and most of your investments are coming through your entire met -- your retirement savings plans, your 401(k) or an eye ira, and every month you squirrel away as much money as you can, you just keep doing that.

They are not return a buy.

Absolutely.

It sounds like john templeton 101. scarlet fu, jump in here.

No real reason.

Earnings season does not really get started until today at 7:00 a.m. when jpmorgan reports.

Why is there so much weakness?

I think there are three reasons why the market has only the going sideways and not up and why it probably will continue to consolidate for maybe several more months.

One is that with the fed now being a little more concrete about what considerable period means, the period between the last qe tapering and the first rate hike, i think the inevitability of a rate cycle is started to emerge, even though it may not be for another year, we are starting to see that take shape.

One has to adjust to the side where going into a -- ok, bloom economy, christine lagarde is telling us everything is fine.

10 year yield -- i am sorry, something is amiss, what is amiss?

, the economy is good in the u.s., japan, germany.

We are in a midcycle expansion.

The claims number yesterday, 300,000, -- phenomenal.

We had the weather-related weakness.

The proof is in the putting that the numbers have to come back as strongly as they fell in the first three months, but what is happening is there is no inflation, so i think -- what i am thinking the fed is going to do if they want to normalize rates to a level where for the next cycle they can start lowering them again, and the fact that there is no inflation allows them to be slow and steady and it is not give reason for the bond market to sell out the way it did nine months ago during the taper.

Court-ordered question of the day come out @bsurveillance, thank you for the briefing.

Does the week selloff make you nervous?

That is a great question for the weekend.

Tweet us out @bsurveillance.

We would like to hear from you.

Tom, we want to introduce our guest host, author of several books, chris, our twitter question was does this week's selloff make you nervous.

It makes me nervous because

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

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