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well despite the wild swings of the month and the drubbing of this week a couple of trends have emerged that should warm the hearts of middle America the stocks of places that people eat and drink have been on fire underscoring a renewed confidence that is now morphing into reality now of course last week it was the restaurant stocks of the parent of IHOP and Applebee's Outback Steakhouse these thoughts rallied anywhere from 10 to 25 percent for the week this week we're actually seeing it in brick-and-mortar names today TJ Maxx was a huge winner and yesterday Dillard's department store was big now the moving Dillard is actually very intriguing considering I think it's a perfect proxy for what they call so-called flyover country as the company's top 11 state locations were all States won by Trump in a presidential election so with consumer spending sure to pick up the key is will it be enough to keep the economy in the stock market rally going let's ask Jeremy Siegel finance professor at the University of Pennsylvania's Wharton School professor thanks for joining us I should point out to the audience in January you call for a 10% correction we got that 10% correction but there's a confluence of things going on where do we go from here well you know I think we saw what happened after the POW testimony to Congress and I now think the markets gonna be waiting til March 21st March 21st is when his first FOMC meeting and conference the new dot plot you know that very important document that tell us about projections on Fed Funds so I think it's going to be really kind of back and forth market without really strong gains at all until we see a little bit more clarity at the end of the month well I know that meeting will also be important because unlike the Fiasco we saw yesterday in the House of Representatives were they were like the leaders took all the time to push their own agenda we'll get a real outlook perhaps from the Chairman but that's a long time yeah for the average person to live with these sort of market gyrations is that's just a reality of life well you know we're getting back more to what the markets used to be like when we had a six-month period of a remarkable I don't think them Dow a hundred points from high to low in a record number of periods now it's a little bit more volatile than we usually have now and I expect that to settle down I mean last December I was you know asked to give a projection for this year and I said it's know we're going to be as good as 2017 the main reason would be rising interest rates but I still think was clear it was gonna be up you know anywhere from flat to 10% which is you know maybe a 5% increase and certainly is gonna be better and you can do in bonds but I think it's gonna be a much more difficult year 2018 than what we saw last year what do you think from a stock point of view because last year for the most part it was a handful of companies five companies that really powered the market hiring to be quite frank with you there's only three or four this year that have kept us even where we are now with the major indices a lot of people are wondering when does that buying sort of spread out to the rest of their portfolio well you know in through history there's always been a few a few stocks that have powered rallies if we if we go back but believe it or not I'm beginning to think that that you don't give it in paying stocks which I've really been hit because of the rising rate environment might deserve a second look because if you want income but you want growth and protection from inflation I think some of those are I mean stocks provide the answer bonds cannot provide the answer so you want to stay away a little bit from you know stock volatility County on capital gains we might say it might surprise the market to actually see some movement towards the the dividend paying stocks which have been left behind so much for the last three months I mean utilities got ahead of themselves and to your point started to correct at December they were even down yesterday when everyone else was up so maybe maybe that will be the sleeper professor thank you very much for coming on we really appreciate it
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