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Video Transcription - Page 2

"Markets Will Continue to be Volatile"

Host : Hey, do you know overnight Wall Street actually had a pretty great rally. The NASDAQ market now in bull market territory in positive side for the year to date and for a lot of the Asian markets as well. Do you think now could be a great opportunity to jump in and if we don’t jump in that a lot of investors could be missing out or is this just a bleep in the long term cycle of ups and downs?

Todd G. Everts: What I’m encouraged by is that the market movements right now versus the market movements of a year ago, these movements are used…are being moved by new money and unlevered money where a year ago the whip sauce and the volatility we saw was using leveraged money and there isn’t a lot of leverage yet to the investor therefore this is true money coming in to the market that’s moving the markets. I’m encouraged by that. What I’m still continued to be frustrated by is the systemic problem in the US from a manufacturing standpoint, from an output standpoint and from how the consumer will drive world economies. When I speak to US investors, just kind of the average person on the street in the US, they’re very, very pessimistic about their job, about the future of the US economy and so that will play out as future poor earnings are announced from major US firms in the next coming quarters so I don’t think we’re out in the clear. I think we’re going to continue to have volatility but an investor needs to choose obviously the right market and the right asset class to be in and they obviously have to have an appetite for risk.

Host : So ultimately what do you think is going to be the outcome especially after the detoxifying plan because you are because the government is introducing leverage again it’s 6 to 1 for people who want to take part in that banking toxic asset plan.

Todd G. Everts: I know. That’s what’s so confusing, the government is blaming the problems on leverage and structured products and synthetic type of vehicles that are highly levered and now they’re basically saying through PIMCO and BlackRock that the average person on the street could buy a levered product that would be structured to buy into toxic assets that the average person wouldn’t understand. I don’t understand it. The problems in the US lead back to the average person not being able to make their mortgage payment, not knowing if they’re going to have a job and that person is a consumer which drive world economies so the US, is unfortunately focusing on the wrong area.

Host : Hmmm…okay well, Todd have a great business trip and have a great weekend. Todd Everts, president and CEO of Wall Street Global talking to us from our Hong Kong studio during a business trip.

Todd G. Everts: Thank you too.
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