Risk-less Equities and Sequestration Issues

Tim Mulholland, managing partner of China-America Capital Company in Chicago talks about the recent pullback in the US market following the Fed's minutes that hinted towards the QE taps being turned off. As a result, the Dow Jones and the S&P fell for two straight days. He talks about: - How he thinks that the market is due for a correction, it has not had a 10% contraction in 15 months. - He says that the Fed has penalised and forced savers into riskier assets, to the point where equities appear to be riskless. - He is not betting heavily on the fact that there will be an 11th hour solution to the sequestration issue. - However he believe that the Asian markets, which turned skittish on the drop in the US markets, have strong fundamentals and any dip appears temporary. See omnystudio.com/listener for privacy information.