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Are you ready for a new twenty year bull market as big as in 1982 to 2000 run up.
John Blake gets things it's -- he -- CEO of leader capital in Portland Oregon he joins us now John thanks for being with us.
So awful lot of fear out there everywhere.
Why do you think we might be on the start of something.
-- why had Dennis.
You really -- Q3 reasons the first is.
Which -- seen in Europe right now it is -- movement away from mines over and debt.
What but buying corporate debt so people that were -- and -- over and debt are shifting them by corporate that is map back.
You know corporate debt is trading -- at a cheaper price give -- a lower interest rates -- government debt.
I think you're gonna see that happen in the United States as well or in fact you know five year bond.
Corporate bond will pay 3% that the US treasury -- pay for.
Showed that a loans that that.
-- government stability is beginning to move massive amounts of money into the corporate bond market OK and 500 in particular.
All right so we're looking at this long term -- You point out that there's too pretty similar plateaus there's this so a couple of years of plateau -- -- to 82 when we're in the middle recession and then -- -- a huge run up on the bull.
And now you say 2000 to 2000 -- another plateau.
Tell us more about that.
What what that is if you go back historically and indeed these these these are you know technicals obviously.
But but they represent you know you know points of of massive amounts of buying.
If you line that up with the unemployment number which you see it which which you see is that we are getting ready to embark.
On one of the biggest bull markets in the last -- hundred years we think the S&P goes to 20000.
Based on that and probably beyond why don't winning your corporate bond buyer or and equity buyer you need to -- -- and only put a little perspective on that.
From the year 2000.
If in fact were correct that would only be a 9% return yet depreciate people not been getting paid.
To being equity markets from today going forward it's only 16% return so we're just -- I think.
We're just catching up that's all we're doing here and I'm stand right now this thing is getting ready to move out and I don't mean a little bit.
And if you if you hang out your treasuries and a half percent you're gonna be -- -- you need you need to shed some money and get on board.
Now let's cut the next chart -- -- bond guide you point out that over in Europe already government bonds which usually pay a lower interest rate 'cause they're lower risk.
-- that they're already in in Italy I believe it is yet take a look at this chart guys and Italy the government bond paying four point 87%.
But the private company -- and oil and gas can be paying far left.
How soon will that type of of spread come to the US do you think.
I think you'll see that starting -- beginning to starting 2013.
And I think that's a trend that's -- continue for a long time let's talk about the S&P 500 to how big and strong it is.
It the S&P 500 -- will be generates ten point one trillion dollars.
In gross revenues compared to China which only only generate six point six yet depreciate the S&P 500 is almost double the size of -- -- the safety.
Is there and also the management got the best management smartest guys that they've already there so I think -- you're gonna see that.
OK last thing recommendations or corporate bonds you got two of them run that chart guys.
Go ahead yeah we like.
We like the alpha natural resources and in -- -- again.
You know the basic theme we've got a debt to GDP in this kind -- about a 105%.
The only way we can pay it back as with what we called -- dollars.
So as the dollar goes down commodity prices go up that's going to be good for NRG.
It's also going to be at for Alpha Natural Resources little kicker there that's also convertible -- make about 5% on your money and of the stock goes up you get this -- that to our like both those plays right here.
Are -- got to John lake its leader capital bold call -- and I hope -- even half right general.
Tennis thank you very much John is -- about a lot of extent has gone.
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