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Time and of course we can't forget Spanish government bond yields you may sit there and say why does that matter to me well once again they are spiking to record highs today showing extreme stress.
In the marketplace as investors believe from Europe.
And into the US could -- bubble be brewing.
In US stocks the big ones that we all know what love spending the last are -- with -- -- -- first on Fox Business interview is David -- chief investment strategist.
At Morgan Stanley.
I've had a lot of people standing in your spot right now over the past couple of weeks saying the safest bet is the United States to go with the big multinationals that.
We all feel comfortable about.
Do we risk seeing a bubble there now.
There's no question about it there's been a eight.
Flight to quality trade here you do want to -- these companies that have exposure to the global growth story they're gonna grow more rapidly outside the United States your Brazil's even though they're slowing.
You're China's even though with slowing you're India's even though -- -- they are growing more rapidly than the US our numbers about 2% -- this year.
We expect something like 56%.
Blended China will come in probably 8% something like that they're gonna try to make 8% this year.
So you want to own these big companies that all that have.
Footprints whether it's here.
Johnson & Johnson Johnson & Johnson was seventy billion in sales twenty at fourteen billion in earnings has 20% margin 70% gross margin seventeen billion dollars in equity only twelve billion dollars in debt and listen how percent.
-- your Procter.
-- is up proctor is 33% emerging markets are Coca-Cola.
Coca-Cola is 40% emerging markets Johnson & Johnson is only 20% emerging market so they have great.
Opportunity there they're getting used to his point 4% -- pile on trade and everybody's going into it now does that mean that the opportunity for yields -- are alpha as they like to say.
Is a little bit -- you want to.
Listen people bought people bought real estate at the top like crazy people bought.
Dot com stocks at the top players say this is not the -- is not that just to thank yet -- the pile on is going to listen.
I like contrarian -- but if everybody in this world breeze does that mean you hold your breath lived up to -- on her up up and up yeah.
If people -- running out of a crowded building that has smoke coming out of do you run again just to be contrary no.
So there's still plenty of room in -- -- OK there's plenty of room to talk about data I'm gonna pick up two points ones coming up tomorrow new home sales and that's what's coming out on Thursday that's durable goods which one matters more.
To the investor watching right now -- homes we looked to be is somewhat of a healing mode they'll actually contribute to the economy this year as she said on the show here.
There will be a positive influence the GDP of the United States solely new home sales existing home sales are fine home prices.
There's this sort of since they're not great okay.
But however of durable good orders.
You've got Philly Fed you've got empire state you've got the ISM manufacturing you wanna watch these durable -- -- And the ISM manufacturing that new orders number as you saw fell from sixty point seven.
To 48 point nine in this latest thing so we gonna be watching that to see if that confirms this exploding out.
In the ISM manufacturing index -- Morgan -- people are looking from down half a percent minus zero point 5% if he comes in at that level or below.
That's going to be.
Interpreted sloppily about a mark I'm a believer in the stock market because I feel over time it gives you better returns you and -- -- on the same page about that but.
When we have banking scandals lately a lot of people watching the retail investor saying -- out.
The Libor rate manipulation scandal we've got Sheila -- former federal but the FDIC.
Top shelf type of -- regulator.
What would you ask her she's coming up in the 4 PM eastern I'm good I'm glad you're gonna have her on I have a high regard for -- but Sheila -- lot of -- Sheila I think Sheila.
One I think I'd like to see her if she had -- launch.
In the new and new congress administration whatever is coming in after we have the elections.
If she had carte Blanche to do anything she wanted to streamline make -- country's system sounder and regain investor trust.
What are what are the to a three things that she would do -- -- carp launched she didn't have to -- If she at a command economy like China does.
If she could command something to -- got a lot of these her missing is to protect money market funds -- a lot of people are in those and they really don't see that so called break the -- moment shall -- talk about that 4 PM eastern -- up Alaska that question when he trillion is in the money market funds it's a shadow banking system a lot of people have their confidence in that system and it's very important that person like her stay their list.
Good in a strong women like you.
Strong anybody -- -- it okay.
David and the good thing about David -- -- we love him as he tickets you name citizen disappearance and I like the home builders no no -- she gives names of stocks coming up he's got.