Washington Wisdom with Stephanie Link
Hightower CIO, Stephanie Link, hosted a fireside chat with her fellow CNBC contributor (and CEO of Farr, Miller & Washington) Michael Farr on the complex political landscape heading into this historic election. Some highlights from their conversation:
Securities offered through Hightower Securities, LLC member FINRA/SIPC. Hightower Advisors, LLC is a SEC registered investment advisor.
Highlights from their conversation:
Michael Farr on the market’s “K-shaped” recovery:
“Those with assets are seeing a great recovery, more affluent people will tell you things aren’t that bad. On the other end of the spectrum, there’s a huge swath of Americans who will look at you slack-jawed at those remarks, and say ‘What do you mean?’ So many Americans are out of work, have no income, no childcare. Those with assets may be doing well, but if we have an economy based 70% on consumer spending, we need to have money in the hands of the average consumer to drive the economy.”
Stephanie Link on the opportunity presented by manufacturing:
“There is a V-shaped recovery in manufacturing, which is interesting as we know manufacturing jobs hold a multiplying factor. Every new manufacturing job creates 7.7 additional jobs as a result. Politically, it should make sense for both sides of the aisle to invest in an infrastructure boom because of the implications that could have on the industrial sector. You could get that unemployment rate down very quickly if you just put a focus on manufacturing.”
Michael Farr on the implications a “blue wave” in the upcoming election could have on the defense sector:
“The reality is that there’s only so much money in the budget that can be spent on defense, no matter if Republicans or Democrats are in charge. They have to pass a budget, and the margin for increasing or decreasing defense funding is pretty minimal. If there is a blue wave, it could be decreased, but that depends on whether the Democrats actually do what they say they’re going to.”