with me in new york is michael purves, guy lebas, and priya misra, td securities.re in argentina are throwing rates up to 40%, some would argue you are guessing now. what do you need to do to get this done? argentina is a specific case when it comes to e.m. and it almost brings us back to the brady bond days. think there has been a stronger dollar high rate in the u.s.. the argentina story is specific to argentina. jonathan: there is an idiosyncratic reason, where there is some string that aligns these two things, it is central bank credibility. there almost is none. you see that in turkey and in argentina. is that the similarity? has a prettyey loose monetary situation and fiscal condition that isn't construct of. -- constructive. both of those things -- you are going to get a little old-fashioned e.m. central bank and fiscal credibility issues converging at the same time. >> more broadly, the story for e.m. the last year and half has been to get longer yen and pay -- play the currency risk because the dollar will get weaker. the dollar move has made people more u

we had michael purves tell us that the f.a.n.g.emerging markets etf has a 0.89 coalition, meaning they trade in tandem is this something that we need to watch more closely is that emerging markets strayed so specifical -- stray trade so strongly near other markets? >> yeah. we think how do you slice and dice emerging markets, if you pick eem you're basically paying a higher fee to track what might be a levered s&p 500 play. with a dull market running since 2009 basically, you really need to be more specific. so you see investors searching for new categories that might be ai, robotics, blockchain it might be reaching out to asia in my opinion, it's late in the bull market. you want to be active. you want to be finding what others may not be looking at or what has more legs maybe more fintech, social network, more online shopping. anything in that direction >> interesting macro view. let's drill down on the argentina peso, which has come under pressure with the rising dollar that's pushed the central bank to raise rates to 40%. they'

jonathan: joining me is michael purves, the chief global strategist for wheaton and company, the head of global strategy at td security, and the chief income strategist at jd montgomery. great to have you with me. free handle on unemployment, yet there are no inflationary consequences, seemingly, in terms of wage growth. why not? >> productivity is keeping wage inflation low. we have been seeing very good payroll numbers, but until you see wage inflation, real wage incomes are not growing. does the fed need to accelerate? they can hike two times. i do not think they need to go three times necessarily, because there is no inflation pressure. let the economy heat up a bit. to the fed, do they really need to go two more times? let inflation really pick up before we tried to get to neutral. jonathan: the statement from the federal reserve did not sound like a fed that was in a hurry. >> that statement was one thing, and that is "symmetrical." two mentions of one word, the clearest evidence i have seen that the greenspan era said they are happy with the course of inflation, they are willin