How Healthy Is the U.S. Economy?

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June 19 (Bloomberg) –- Hargreaves Lansdown Head of Equities Richard Hunter discusses the U.S. economy, reaction to the Fed’s announcement on interest rates and the state of the IPO market with Anna Edwards and Mark Barton on Bloomberg Television’s “Countdown.” (Source: Bloomberg)


The morning after, how do you digest janet yellen's comments add focus on the comments and not on the dots or revisions from the members?

There are probably a couple of lots on the landscape in terms of the u.s. you have the has a market where recovery is patchy.

And unemployment is not at the level that one would like.

Having said that, there is stability and feasibility.

It should give some confidence in prospect for businesses in terms of capital spending which is one of the things which should continue to make sure the recovery is pursued.

It has pushed equities to a record high.

The last all-time high reached in 2007. is it justified?

Philosophically, it feels different.

It does not feel like able mark et.

By the same token, if you strip it back to the bones, the quality blue-chip companies from around the globe took the pain a few years ago, during the crisis.

They are now bought -- now dropping to the bottom line which is resulting in his cash mountains.

It is the deployment of that cash.

It is interesting you say it does not feel like able market.

Any parallels to 2007, don't worry because it doesn't feel like able market?

Just like a bull market?

When the market is this stable, that is a reason for instability in some strange way.

There doesn't seem to be any sort of fear factor out there or anything that could derail this potential recovery.

Part of that may be down to the fed's openness and they are trying to communicate exactly what they are thinking at any given time.

There are similarities between now and 2007 and that this quarter has seen $1 trillion worth of deals, and monday deals -- and and and m&a deals.

We see targets and shares of companies rising.

It goes back to the cash mountains we mentioned a moment ago.

This money needs to be deployed.

The financial crisis really caused them to concentrate.

It does show optimism.

Traditionally speaking, there is a mixed set of results when big oppositions -- big acquisitions happen.

There have been successes, but equally there have been famous overpayments.

The market is buying into the logic that we have seen almost strictly in the pharmaceutical sector.

Immuno names of some companies that you are interested in.

-think it is a fairly open field at the moment to be honest.

We have seen some potential noise and pharmaceuticals.

You've got to be a perennial big speculatives.

There could still be some mileage in the mining sector as well.

Even financially, as companies start to move outside their own geographic borders, there could be some european or other side of the pond merger activity in financials.

What is your assessment of the ipo market?

Some say that fargo, a few weeks ago, heralded the u.k. ipo market.

But you see the to the shares yesterday.

Was it a bit early to call the end of the ipo market or not?

I think it was.

Inevitably, we had somewhat of a backdrop of building up.

They decided it was not the time in 2010. the backlog is now starting to come through.

So no maybe we have had a few too many in terms that it puts investors in the position to be more picky about where they put the money.

Ultimately it, of course, ipos -- you look at the metrics and the quality and the prospects and you decide whether to invest, whether in an ipo or another share.

Thank you very much for joining us.

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


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