[video] Quick Take: Producer Price Index Continues to Prove Hawks Wrong
NEW YORK (TheStreet) -- The producer price index dropped 0.1% in November, and and TheStreet's Joe Deaux asked Paul Pagnato of Pagnato-Karo Group what that means.
"Essentially, it's saying prices are flat, which is to be expected," Pagnato said. "We're coming out of the 2008-2009 Great Recession. GDP is building momentum domestically and worldwide should they revise it now to about 3.6% domestically, 3.4% worldwide. But you still don't see the building occurring to really start driving the prices up yet."
Pagnato said that for 2014, the technology sector has a lot of potential.
"Think about it," he said. "We've just gone through 12 years of the war, spent trillions of dollars. Whenever that happens you have major technological advances, whether it's robotics, 3-D printing. You have the electric cars starting to kick in and take off. So we really like technology."
He also sees a lot of opportunity in the energy sector because something has happened that he never thought he would see. "The United States is now the largest energy producer in the world," Pagnato said, "and that's because of fracking."
He added, "There's a lot of companies, there's a lot of industries surrounding energy that are going to benefit from us being the largest energy provider in the world, and soon to become a net exporter."
-- Written by Carla Baranauckas in New York.
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