Fed to Fade as U.S. Remains Preferred Market: Patel

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May 15 (Bloomberg) -- In today’s “The Call,” Margie Patel, senior portfolio manager at Wells Capital Management, explains why she sees less of a focus on the Federal Reserve as the U.S. continues to be the most attractive market. She speaks on Bloomberg Television’s “In The Loop.”


Now is a time for a call on the markets.

A lot to bring in the senior portfolio manager at wells capital management.

The u.s. is still the best place to be in the coming years.

If the said -- fed is going to fade into the background, the u.s. might not be the best place.

What is driving the u.s. equity market is not simply just the direction and interest rate.

We are starting to see a detachment.

Stocks will go their own way.

Treasury rates are going to stay lower for longer and have less and less relevance to stop level.

Improving some sectors of the economy will take stocks higher.

That will be affected by what we see happening on the inflation front.

Mike mckee has a real deal on inflation.

We are nowhere near a danger zone yet.

The numbers we got this week might be a bit of a lack up to traders.

They are not pointing to a real problem yet.

It is a sign that maybe deflation is the danger that we were fearing.

The cleveland fed took a part the inflation figures to find out why prices were not rising.

They found half of the decline came from the weak economy.

The figures out a few minutes ago concerned the empire numbers.

Overall, people feel the economy is picking up.

A quarter of the drop came from stagnant wages.

Some prices rising.

House prices are up.

Medicare was cut back.

Hospital prices fell.

That is out of the numbers now.

Bond yields are falling because of what is going on in europe.

You look at the inflation expectations indicators, at this point, investors don't know what is coming.

Yesterday was interesting.

We had the ppi numbers take a big jump.

Investors either do not care or they regard it as a short-term transitory move in a backdrop where they will be under pressure lower.

You say the u.s. is still the best place for equity investors.

I cannot say that i see a lot of excitement in your note of rounds.

It seems tempered.

I think it is.

In a low growth world, you have to lower your expectations for the very high returns we have had since . they will do better than fixed income alternatives.

It is a good place to be, whether the returns are mid or high double-digit.

It is not just u.s. stocks.

There are certain places that say you -- that you say will give a better return?

Health-care stocks will continue to be a fertile area -- fertile.

We have new devices coming out of the market.

Industrial companies have high cash flow, high margins.

They have been great innovators.

They are the new leaders going forward.

Materials companies will also benefit.

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


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