pick up steam >> let's take more about this rally that seemingly just won't quit and bring in brian belski one of the biggest bulls out there, getting more bullish, now believes the s&p 500 could reach 2800 by the end of the year. that is another 10%. here's the question, brian welcome, by the way. >> thanks for having us. >> out of 11 groups, only two are down this year telecom and energy of the big ones do you believe, a, energy hast turn around to get to your argument, and b, do you believe it will turn around? >> i'll do b first, because i'm polish, do we do things backyards. no, i don't think we need energy to turn around i think we just need energy to be a bit better. we put in a tactical trade about a month ago to say it was time to buy energy. i think the theme no energy is embrace the range. many of us forgot they had a super-sighle between 1982 and 2002 a lot of the companies did great in terms of earnings and cash flow we don't need oil prices to go up or down so many people, all they remember is moddie super cycles, death to america, you bike stock, because interest rates are l

brian belsky, and equity guy, you look at the equity quiet -- there is bond quiet as well. we are at a historic monthly low at the vix. how big a headache is that for you at goldman sachs? rachel: we think volatility is due to rise in the course of the next year. it is likely to be the result of the beginning of tapering. we are coming out next week with an client piece, the subtitle of which is the long and winding road. global banks will be unwinding, not from the same starting point, but it will begin to tighten financial conditions into next year between the financial tightening conditions and the potential for political risk and policy risks, there is likely to be volatility and the spreads will be higher. tom: at timko, the basic idea of hard data, soft data, can we develop a theme? do we have enough confidence in the path of the hard data? >> you brought up a good point and the word confidence. if you look at what yellen said in her q&a and recent speeches. she is sounding increasingly confident and i think that is because the labor market is doing well in the u.s.,

alix: brian belski sticking with us. with jimmy levin, oz co-cio.nt lp this is bloomberg. ♪ alix: 20 minutes away from the opening bell in new york. we want to go to erik schatzker in toronto with a special guest. k: good morning from toronto third i'm here with jimmy levin from oz management. good to see you. this is a challenging time for hedge funds. past investing has proven to be the best idea as of late because the markets keep going relentlessly up. how challenging is the future for -- jimmy: if you look around the world today, equities are basically at all-time highs in almost every market. on an absolute basis and evaluation basis. high-yield spreads are tighter than historical averages and the yields are at all-time lows. rates are at all-time lows. on top of that, you have volatility at all-time lows. none of this is new. we read about this every day. the traditional sources of return which would be taking systematic risk or value risk in all these markets is less exciting. erik: you cannot think thematically

brian belski >> brian hey, how are you doing over there?doing well. >> to my point before we went to that, improved was used 24 more times and it seems hawkish in a good way, but is that bad for the equity markets because that you remain very bullish on stocks >> thank you i don't think it's bad for the equity markets because what it shows is that the economy's improving, period, and i think what's happening is we in the business have been waiting around for 30 or 35 years for inflation and the wage inflation will be good, but it's not going to happen overnight. you have to remember that we were at crisis levels with respect to interest rates for a while and we've just in the beginning stages moving away from crisis levels and now as we like to say that the traditional method of investing is beginning to occur stocks go up, earnings go up, economy goes up and the dollar goes up and that's the circle of life and investing and we are still very, very early on, so this is not going to be a stock market killer. >> if you put the pieces together