Wells Fargo Funds Management Chief Equity Strategist John Manley talks with Bobbi Rebell about Friday's market slide and what to expect next week.
Winding down the trading week let's talk markets with John man he is chief equity strategist at Wells Fargo funds management great to have you as always makes me. So this is not a great day for the markets but it's the best day of the week to have a bad day you say. Well I'm speaking psychologically. I think when it's a bad day on Friday there's a particularly bad news. I think it's people just nervous about what's coming up now they can be nervous for good reason. But the fact is I think people are nervous Matt ultimately. Issue some room for the upside is we all come down or what are other reasons to partner. I could go one until Tuesday with this you know obviously the bricks and issue these Spanish elections. Via phone sees meetings next week the bankrupt and we released some information we'll see what they have to say. All that China has been on vacation for one coming back after a couple days we'll get some economic data from them. All this sort of thing that makes people worry could we get that number could be another August or January. And get on a sport comes afterward where we got very close to record highs. I'm for example the S&P 500 so what's going hot and really is it just so much with it to opt. If I were technician that's what I say and there he just can't seem to get through the old highs that is worrisome. But it's some of become self fulfilling after awhile we get nervous that will get nervous when we've reached this level haven't gone through it. A lot of talk about a lot of concerns about the epilepsy right now what's your take on what to expect there. I think Janet Yellen is a very very bright woman who's a very well formed I think she will make the right decision potentially err on the side the angels in terms of went to raise rates I don't think she's under any mandate to do it quickly. I think when the Fed raises rates will be a happy day because it's saying the US economy is strong enough to take it. They may raise rates this year several times but they're not going to tighten he'll only raise rates to some degree they can do so without harming the economy. Overall what is your take on the market as we started to get toward the heart of summer here. Moving into summer I know this season now he's against it but I think we can still do OK I think there's still some surprise that it could be positive you have to have you need you have some it has to change people's minds for the for the market to go higher. I think of earnings start to pick up and that's something we had noticed last week or so earnings expectations are beginning to give up a little bit. I think you could see a move towards mid cap stocks is those numbers get better than people realize that they are pretty cheap vs large caps in here. So I I'm pretty destructive I think it can work. I'm looking over my shoulder all the time there's a lot to be worried about and believe me I'm worried like anyone else. But I'm worried I'm not scared are ever the optimist thank you so much thank you our thanks to John Manley chief equity strategist at Wells Fargo funds management. I'm popular about this as writers.