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But he got us here at Israeli he's got more thoughts on all this.
I thought I think a lot of people thought that the Greek and an eight year ending was was being settled.
Became a really good earning season as -- you could hardly believe said.
-- -- -- -- -- That's -- -- yes I think all of the issues that you're discussing underscores why the stock market should not carry an average.
Price earnings multiple.
That's 1 of the the central issues that's therefore investors.
What is appropriate in this environment is a below average price earnings multiple because of all of these issues and uncertainties and consequences.
And so on and so forth as far as Europe is concerned.
The Economist Magazine -- on its cover and absolutely fabulous.
And our old European leaders you'll like this place in the spaghetti collender.
Now if you notice spaghetti column the risk is -- households and -- -- You put the spaghetti America while they had that all the European leaders in the spaghetti -- and -- were being lowered into a turbulent -- That's their boat.
Everything I read said that even with that kind of actions that were taken recently.
Even with all of the vagueness that -- You're going to end up with probably -- best case scenario of a recession.
-- -- And that's not good under any circumstances so is a problem solved no.
Is a problem -- -- -- point of -- going back to last -- no it is -- there's lots of issues out there and the policies that are agreed to from last week that will be put in place assuming that their -- put in place.
Means that the banks are going to be undergoing.
I think -- credit contraction.
Which is not expansionary.
For the eurozone where demand is needed there just like it is needed over here.
And frankly I respectfully disagree with some of the comments in regards -- confidence it's not about confidence that's about the man.
Now maybe demand relies upon comment -- people have jobs there's no we -- raise growth that's going on.
If you have the hollowing out of the US economy.
And workers within the US economy announced that the man on a global basis and you got the Chinese gold cities that are being built.
There a lot of issues that are out this are coming back to stock market investors.
Inappropriate despite the good earnings thus far.
At record levels at record margin levels which means that they can possibly go down in the other direction here and that it would almost positive things and that's the one really bright spot.
From corporate earnings -- even with all of that.
It is not appropriate when you get all of the other items plus in any other we're not even discussing here.
It's not appropriate to have an average price earnings multiple more like a low double digit -- facet that -- I mean it's a partner for this market -- How you do actually -- I'll give you would of the errors one that that I that I have been looking at.
And this is a very cool want to take a look at from risk congress called point of view.
There were two ETF's.
One tracks the mega cap 100 in your own -- -- -- small cap 600 and some pretty okay.
-- we have mega cap 100.
I JR small cap 600.
Just put them up on your screen and watch them on a daily basis when you have a risk on environment even in a market decline they will drop equally.
They should drop equally.
If you have a concern if there's a risk off environment that that's taking hold you can peered through.
That data and say that if the mega cap drops less.
Than -- small caps do and you know that there is increasing concern and fear that the mega caps struck the same.
As a small caps that means that there's still plenty of money out there and they're not that worried just yet.
That's 12 indicator.
Don't get fooled with moving averages -- 200 day moving average.
The break above a break below golden cross stuff -- Walesa it doesn't matter you have to factor other things into consideration.
And big market moves within trading range is almost always mean nothing.
They don't result in any predictive value so what are we having right now we have -- -- that's right zoom down that way.
I don't agree that last week's move was a break out of any sort because the range is really thirteen fifty like eleven.
And that means -- -- range bound but the arrangement we will meet at the end of the year for most likely yes so -- -- -- thing is it isn't.
It's not making it worse or better is what you're saying not just a Muslim from an investor point of view it is not you're you're you're basically stuck in neutral.
Right now key balancing our -- the boost for strategy.
I think that that's contributing factor for now.
I think that that is an issue as far as -- eurozone surviving.
But I'm of the view that the eurozone is going to experience significant problems.
Regardless of whether the Greeks vote for it or they don't fall for it because what you have a job austerity coming in a big way -- exactly when you're doing.
You what do you do then I mean I'm I'm an investor -- again I mean we talk about -- -- every day here.
-- I just sit tight.
That finally make -- -- well you know sometimes the expression is return of capital is more important than return on capital are -- -- And stay close to the center of the -- the expression have a lower equity exposure.
I believe sometime in the bond market and are you don't -- remind you wanna cash.
And above zero is better than minus.
Okay okay and just accept the fact that -- we're doing and changing environment that way for a month and that's correct it has been about when it breaks which I believe it's going to break to the downside.
You really will not have a lot of time.
To get out in fact.
The first -- of the bear market is this kind of looks like a bull -- corrective phase the second wave.
Is when you have that cascading waterfall like you -- in 2008.
And when that happens Tracy.
There's only one thing you can do that sell into the decline because -- world funny you say.
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