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Keith Springer, Springer Financial Advisors president, on the impact of stimulus on the market.
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Our next guest says stimulus is the only thing propping up the markets right now and believe it or not it's time to get the heck out.
Joining us -- Keith springer president of springer financial advisors.
You know -- -- -- that stimulus is basically just driving this market but.
That means we need more stimulus -- because we're almost done what the what we got.
That's pretty much you had a right on the button -- it's the -- driven it's addicted to street analysts that's what this market is all about it's -- like a bat out of hell you hit it right on the button.
That this market is just looking for more stimulus and it's being driven the correlation.
Between the stock market and more free money printing.
It really is incredible as you can see every time we have it stimulus take six to nine months to feel the economy.
It takes six to nine months to last in the economies we pretty much running out.
-- most likely gonna get something at least some form of -- west.
Some liquidity if something happens in Greece but this markets addicted to it and investors obviously can't -- cash they just need to be careful look for dividends you know.
Invest for need not for -- -- -- Could you saying if we don't get more stimulus the market is essentially -- -- up about 80% since the march 2009 lows.
So if we don't get stimulus markets peaked you're saying -- data dot.
Yep pretty much -- Trace its.
It we will -- it but it they ideas -- to market that the bull market is getting a little old we're about the 42 month of this bull market.
Bull market's average 39 months we're in the fourth the ever presidential cycle which just typically the peak.
Market typically goes down in the first year and bottoms in October of the second year normally a correction or bear market.
You know but on the other side is there's a lot of liquidity could prop -- up for a little longer I'm looking for the market to rally back towards the election.
But investors again need to be a little more careful it's not so much getting -- and getting out taking a whole lot of risk.
It's you know invest for what you need to get if your portfolio doesn't need all the risk.
Don't take it you know pick up dividends picked up and come from corporate bonds preferred stocks MLPs things like that you can still find.
You know for our -- are still finding 678%.
-- he just donate album now and all the rest of the market.
You eat eat your your gold -- still -- you know gold was set in 19100 dollars an ounce at -- -- are the fundamentals still there to push back up.
The only reason to buy gold here Tracy is because gold is the third currency if we get stimulus gold will go back up.
Gold is acting is basically -- -- counter to the deep basin of the dollar and the Euro every time they print money.
Gold to -- simply as another currency and that's what it is and you know the ECB came in yesterday with more money we -- Bank of Japan talk about it we saw the Bank of England talk about it and we're gonna see the Fed talk about it.
This is probably good time to buy calls for that reason so are you buying gold are you -- -- the miner stocks.
You know I don't -- the miners the miners have had a big disconnect over the last few years you just haven't seen them.
They the correlation so you gotta go with what works out and buying jail they.
-- guilty I could you want to.
Yet ETF the -- the ETF because unless you're gonna buy a lot of anyone distorted by the actual Greg itself the -- just haven't participated so.
And I think you can't fight -- they can't fight the traveling -- not gonna work go somewhere else what's.
Interesting now is that goal of the plan inflation and yet we're seeing Consumer Price Index saw -- we saw yesterday prices come down.
We are actually in a deflationary environment that's a great point.
We're in a deflationary environment but typically you're seeing gold go down but gold is acting as a third currency right so there's a disconnect between inflation deflation it's really just -- All the printing of the dollars in the Euro that's pushing gold up an amerasian if you took away the stimulus.
That's why you sub -- far from nineteen to 15100 because people didn't feel like got there was any reason to buy it -- is certainly no inflation.
Yeah and I I yeah I just think we go back to the bat out of hell analogy in pull up the meatloaf song Keith springer thank you so much right -- I it has got to be here and -- we can love.
RA.
