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Dow Jones columnist Al Lewis, Newedge Senior Director Larry McDonald and Cameron Hanover President Peter Beutel on the outlook for commodities.
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Joining me now tonight's -- -- monster's former Lehman vice president.
Current senior director at new reg Larry MacDonald Larry thank you for being here he's also the author of a colossal failure of common sense but what about Washington Larry the inside story actually the collapse of Lehman Brothers.
Also with us Dow Jones columnist Al -- -- -- of you tell the president off Cameron Hanover.
-- -- -- risk management firm gentlemen thank you all for being here what -- lousy day for the markets I'm Larry let me Begin with you.
Europe it's the never ending story to story that continues to continue to give us miserable news we have the summit in Brussels last Friday.
We come to the realization into anything to address the current problems I can't see how this is not going to affect stocks for the foreseeable future -- my right.
Well you know I've been telling our -- to -- mention them but I don't show over the last.
Couple of months thing it's actually easy market to trade and I know that sounds crazy but.
It's a pattern that keeps repeating itself the market's going up -- euphoria.
And down in patients and this has happened since the first week in August in other -- -- in the euphoria of something happening in Europe to put an end to it.
As we saw the United States when Hank Paulson after Lehman fell Hank Paulson -- treasury -- secretary yeah congress got together in a fix -- -- so people have been expecting that but.
But each time the politics of Europe -- slowed it down so it's actually easy trade because.
It'll be fixed over time but you're gonna see many moves of -- this up when euphoria down and patients and that's where the trade -- -- Peter Libby took about energy radius of about oil whole.
-- -- -- today that they gonna keep output of what thirty million barrels per day or whatever but I just of them that I never believe how like China never believe anything they tell me.
Well the story is simple everybody's gonna keep producing as much as they can.
And the saudis are going to give people whatever they -- war.
The saudis are really the only ones with any spare capacity.
At this point there may be one or two others.
-- 20000 barrels or 50000 barrels.
But the saudis have for a long time.
-- that of people come to them and say that they earnestly want the oil.
Though give it to them and everybody else's producing as much as they can cause a stronger dollar also doesn't helping of the doesn't.
Well that's another factor here is as the dollar strengthens.
Then that that tends to make them.
Want to sell as much as they possibly can.
Our -- let me ask you am commodities we note to go to tumbling today but there are those that say this is actually a market with a lot of opportunity would you -- -- Well you know I -- gold prices go back down says 15100 all -- 1585.
You know there's a lot of people -- -- looked at gold bugs are done but it just seems like every time this happens it's just an opportunity.
For people to buy and obviously there's gonna be less demand for commodities have a recession in Europe.
That comes on over here but you know there's other things going on you know as you just mentioned with oil prices yeah it could force product prices up so I don't I would look at commodities right now -- wonder -- this is a buying -- What do you think Larry.
But to see some profit taking going on as we head towards the end of the a year as well boats some good value -- that.
-- blogging about this some -- Twitter handles at convert bond and cold image removed today.
It with -- -- to two or 3% below its 200 day moving average right.
It's it's really hasn't done that throughout this entire bull running gold in many many many many months to -- many it was years.
So that's an indication.
You -- that 200 day moving average as a trader is an investor if it holds that it's a buy if it stays below the 200 day moving average.
It's a sign that maybe the end is here which I don't think I think that if you will probably just and one of these many many dips that -- -- Now let me ask you that's a gentleman here believe there is some opportunity out there what do you think it takes -- -- is so volatile -- very difficult.
We depends on the headline visual -- the headline of the -- doesn't really.
Well I'm not a trader here so I mean he's dominates trade for a living it up.
I happen to buy and hold my investments -- like this one of the few little people out here.
I think the stock market is gonna be great because were asked you put your money right now right interest rates are zero.
But you not -- that's a good reason to invest in the stock -- I really don't know where where you invest.
You know you gotta buy and they steps and you got out sell when they hit their peaks in.
You know the average person out there is not going to be doing that actually they're just not not very true all right we'll continue is so disgusted to submit to cash put under the mattress and below -- -- put them anyway aren't.
