Blackrock Vice Chairman on the Markets

" There should be new TV show called in search. -- market's bottom because. You know why what investors look out for to see that tensions are easing what is stop on the many people run on the dollar -- gold prices going up what should investors be watching to see that the tensions in them stock market -- easing up."

" That's a great question for first of all I would argue there -- some reasonable probability that ace FF and 50840. Dow Jones Industrial Average not 7900 reached October 10. Is an important -- at least an important intermediate -- some probability it's the low for this cycle we're beginning to see some things. I think that are improving we talked about credit conditions not great but better than they were. Look equality spreads to -- continuation there Libor rates difference between rates on high quality low quality instruments. Hot high yield debt to corporate debt high yield debt to treasurys. Watch those carefully. I think that that we also want to look carefully at how stocks react to bad -- if they keep going down on bad news we're probably not at a bottom but. If they can rally in the face of bad news that usually the sign of some those things to come. Mountain of cash on the sidelines that doesn't mean that the market have to go up I lost my earpiece here but it doesn't mean that. That there's a lot of sideline cash should. Some fuel for the rally occur and that of course we began to see yesterday."

" You're welcome to hold that your police fear there could -- so many more questions -- areas of Bill Murray. But I want to ask you about real estate investment trust in particular. If you want to be the contrary a lot of people would say as -- search for the housing bottom Tom brought that up. The you would look for -- an investment -- trusted you can buy -- now and -- watch and appreciate every year would you give in the matter would you stay away."

" Now we would still be cautious on real estate investment trust they're part of the financial comment I made earlier but even more specifically. Concerns about real estate prices haven't gone away. Some of them have a fair amount of leverage as you know on their balance sheets. I think that down that sector probably continues to lag but we'll be part of some of the I'll call them vicious rallies in financial we see from time to time."

" I bet that that Nike statement -- was talking about it meetings Bob where they're talking about -- a new paradigm of new paradigm was down the buzz word. Are what are you worried sometimes that you're looking maybe like a lot of people post World War II data. And not looking that may be other periods in our nation's history and different period that we may be entering into that new forums over the last fifty years."

" Another good question that we obviously ask ourselves and ponder with -- each other black rock with the obviously a lot of consternation in we won't know for some time some of the answers so when we reflect on and a bit. For starters the average post World War II recession percent to 20% earnings decline in the US. Our guest is because this one is different to your point we're going to see more like 40% decline. But our view is the market is largely reflected that already so other cross currents in the actuality is a very difficult to put together. I think we are an -- leveraging period that's going to last a number of years that's unusual. And we haven't seen since. Frankly the Great Depression and -- less of a long period of time that is D leveraging of the consumer. He leveraging of the financial sector and I think that will be -- the faces that developed world economies and stock market."

" Bob doll vice chairman chief investment officer of black rock thank you so much for being with us a lot of great investment ideas sir thank you Bob. Great to be with you thank you."