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Ed Deicke, JHS Capital Advisors registered representative, with his market outlook for corporate America and why he says a ‘perfect storm’ is appr...
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For corporate America wanna actually -- it's even higher.
Joining us explain Edward take -- I'm so glad you're here because in many of us -- understand this ths capital advisors.
So you -- the perfect storm for corporate America is approaching us well what's happening is a combination of low interest rates.
And a great labor market.
That combined with really overall economic growth mean certainly we're not seeing growth in Europe.
And here -- kind of stagnant.
But the American markings -- growth are growing so -- getting overall revenue growth for the major companies and I think that's can lead to higher stock prices the F interest I think it's really interest thing.
Is dividends.
Right now -- S&P this year will pay out more in dividends and it's ever paid in its history.
Usually that's covered by earnings that are twice as much as the dividends that are being paid right right now it's four times as much.
Which means large corporations have a lot of money to raise dividends don't -- -- so we see a combination.
Of a raising of a dividend along with just a decent.
Economy we should see stock prices go higher.
Before intention of the 500 SP 500 companies do offer dividend to your point but we're starting to see a little bit -- -- attention out of us stocks partly because there's a big run up in the stock prices there is -- and actually interest in Tracy doesn't need as anonymously -- market today employs its sleepy.
I think last Friday -- -- the day off I noticed the Dow traded down fourteen to fifteen points for five hours straight which is almost a mathematical anomaly.
Did you notice what's happened the Russell was actually up a little bit today it's up five or six points or maybe three quarters of 1%.
While the other -- -- trading very very flat.
So we're seeing some money come into the small caps but I think that is that's good for the market I still think that's good for the for the big -- stocks as well because it would show a broadening trend that not only if people aren't just buying the same -- three names.
But are actually looking at.
Looking for some value in the small caps is well you know you -- a lot of other Smart people out there say that there's an oil and gas boom here in the United States North Dakota in particular.
House up well north Dakota's gonna produce over 200 million barrels of oil this year.
I mean who know that it's it's it's an unbelievable number -- last year was the first year and 62 years at the United States was a net exporter of petroleum products.
I thought for sure we were we were net -- -- this year it's gonna happen again.
And if you look at even on a a bigger scale not just the United States from look at Canada.
And the South America the Americas are starting to produce more oil and gas than ever before and at some point be Americas are gonna overtake all -- As oil producers so that will be very good not only from an economic standpoint here in the Americas but also.
-- you know -- -- war setting where we've obviously been in wars is in the Middle East protecting oil and maybe as we become bigger and bigger produces -- a bit less necessary.
Right which is probably why we're seeing again and we've been talking about it here this rotation into energy plays as well we even heard today are very -- claiming reporter Warren Buffett.
Rotating into energy plays so.
Is that -- use -- suggesting people put their money.
Maybe out of it.
Defensive instant it energy place -- not necessarily I rather take a much more broader look at -- I wouldn't wanna be just in one sector I'd rather have been asked to stock that have a few energy stocks.
And a few.
And a and a lot of other groups I'd rather not make that's what my client's money.
Because I think in the long run money flows in and money flows out I wouldn't worry about that I try to have a broad based portfolio that would have a little bit of each you know it's interest thing.
With oil -- stocks and energy stocks when oil prices go while the energy stocks do well right away yet but it actually hurts the rest of corporate America so you know that that market reacts well right away longer term it's not as good.
I would actually think loyal lower oil prices over time would be a good thing for the broad market overall.
Certainly for those of us that drive every -- Ed Ed thank you thank you very much JHS capital advisors.
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