michelle meyer is still with us.arned that millennial's are finally moving out of their parents houses. does this mean they can afford to buy a home? >> there is two steps. the first one is to be able to move out of your parents house and live independently. the second is to potentially buy a home versus rent it. the increase is going to be supportive of the rental market. in time, supportive of homeownership. we are not quite there yet. >> look at the longer-term historical trend, it crept up a bit last year, but still well below the historical averages. they are betting the slower rate is the new normal. >> i could sympathize with the view that we've had some structural decline. i don't think this is all we are able to achieve when it comes to formation. the millennial generation is a large -- sickly looking at the population is significant. in time if you have a strong enough economic backdrop, you will see -- we have not had structural increase. >> the new york fed agrees with michelle meyer. they put out a paper

i will ask michelle meyer of bank of america merrill lynch. i will see you in a few minutes. you in san francisco. >> the numbers are amazing. i'm glad you will dig in. you got a dollars, an iphone you could be the next spielberg spike lee. interesting story about making movies on the iphone. ♪ >> i'm cory johnson. this is "bloomberg west." "tangerine" surprised all by portray and the gritty life of transvestite prostitutes in hollywood. -- by portraying the gritty life of transvestite prostitutes in hollywood. the film was shot almost entirely on an iphone 5s thanks to an eight dollar app. this is an incredible story. i feel like the democratization of filmmaking, taking a lot of the costs away and letting the filmmakers make what they want to make, could be an incredible thing for movies. >> yes. "tangerine" is an example of a film that would have trouble getting green lit in traditional circumstances. it is a perfect test case for the world of any unique story you want to tell and the opportunity to do it, and if you tell it well, there's an audience for it. not only did i

joining us now is post-9 is chief strategic jeff poscic and michelle meyer.ou to the program. jeff, it's a strong rally now? >> it is. we believe it's part of the relief rally. the economy had a blip in december as you move in getting data for january. the consumer while a little disappointing is not dead. employment trends continue. and now we're seeing some stability in the oil and energy prices. all of this leads, we think to greater investor confidence and that's fuelling a lot of this. >> you guys have $27 billion under management. what are you advising people to do now? given the analysis that you've got there, what now works best? >> we're long-term pulse but we're more restrained in our bullishness than in many years. we just think we've come a long way. we're you coming into tip the late-cycle problems. we're seeing constraints in the manufacturing sector which means it takes longer to get the goods you need to grow your business delivered as well. >> as we have the record highs, michelle do you see any disconnect between what the data is telling you