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Tuttle Wealth Management CEO Matthew Tuttle and Piper Jaffray technical market strategist Craig Johnson give their predictions for the markets.
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-- good to see Larry.
Thanks so let's get straight to -- street fight for the polls we have Craig Johnson.
Market strategist at Piper Jaffray -- for the bears we have -- title from Tuttle wealth management he is the CEO gentlemen good to see a credit let me go to you -- -- You have some extra order of the -- -- wasn't too long ago that you were bearish -- you've turned around.
But let's just put up your predictions for the gets -- -- because I think they're nothing was an extraordinary you think there could be a 30% rise in the S&P.
Over the next 24 months UC VSB climbing.
To 1550 and six months to 17100 in twelve months ended -- thousand.
In -- -- months what gives you such a bullish.
-- where does that come from.
You know we think conditions are right at this point in time for the market to finally break topside of that 1550 level.
We've been stuck -- a secular bear market -- years and the market is handling a lot of bad news very well and the market.
The trend is up and the market is handling a lot of bad -- is very well and continues to grind higher.
Even here at the end of the day we did see small midcap stocks certainly do very well.
And it appears to be that things are acting well and we see a lot of good news we're finding -- -- that topside break out.
Crank out enough to just travelers -- from the CME but he said I wouldn't be in stocks right now I'm presuming you disagree if so where would you be putting money right now.
I have to would be buying stocks and here I think a negative psychology is so high at this point time.
We have to realize that looking back in periods of time like 1995.
When all we saw working -- blue chip stocks than -- broadened out in the secondary stocks he expected stocks.
Big bull market rally start -- blue chips first and then broaden out that's exactly what we're seeing once again.
And -- history doesn't always repeat itself but it does Ryan.
And is starting to happen once again like that.
All right let's let's go right to the street fight and Matt what do you think -- -- predictions to -- particularly the SP predictions -- I think he's wrong.
Well we're looking at the potential for the S&P 500 by the end of the year to may be retest the June lows around 1260.
And I mean really did the next couple weeks is a lot of stuff happening that as a potential to disappoint.
But there's three things and -- really concern us more than anything.
First obviously is Europe that hasn't been facts.
So what you see is in the absence of news out of Europe.
The market rallies because there's nowhere else to put money with interest rates and slow to Europe every single time we rally comes up and it bites us.
The second thing that we're looking at is the fiscal -- We're heading for it and -- -- I don't see any real political will stop back.
And then third let's say we fix both of those things that fixes austerity.
On a global scale which ends up lowering GDP -- across the board.
So it's really bad news and bad.
News about none of what you say is wrong.
But I look and I see that over the past let's just say nine months.
That's exactly what people been talking about watch -- for this this -- and the S&P still up 19%.
What about that whole climbing the wall briefing coming you if you don't want to miss out on an opportunity in and -- freely you've been negative you've missed out.
What you don't want to miss out on an opportunity that you need to be tactical here dynamic so what would you buy.
Well right now one of our most favorite things is gold.
We've just started buying gold we're going to be buying some more if you want to be in the markets.
Things -- look at our.
-- I I have no problem playing the bubbles if you're gonna be dynamic with that as well things like apple and -- The case hey guys that we have a milestone that we just it is not a great piles on by any means in -- it plays right -- Nazis as.
Our breaking news to look at us the US debt.
Has now topped sixteen trillion dollars for the first -- to Republicans.
National convention have that debt clock up there they would they were kind of open that would happen on their watch it didn't -- -- -- by a couple of days.
But sixteen trillion dollars.
Craig is as bullish as your in this market when -- it would -- you look at that figure doesn't give you that he be GB's.
-- -- really doesn't because I know that ultimately we're gonna work our way out of that dad by growing our way out of it and what -- come back and say with Matt's comments is.
Hey we discount bad news once not twice not three times and it really isn't anything new that's coming up here from.
The Euro -- -- the fiscal cliff these are all known issues they've been out there for awhile.
Markets already discounted these issues and we can chip away at removing some of this overhang from the market.
Guess what we're gonna see the multiple this is fundamentally here the multiple the market is going to expand.
This market's gonna work and I can tell you right now that not many investors are thinking that this market can work.
And there's a lot of negative psychology out there to me the surprise is to the outside and the economic data has been incrementally getting better.
Not worse we started with credit let's -- with a map out what would force you or encourage you to change to becoming more affable.
Well I would certainly want to see what the ECB says I want to see what the Fed is doing.
And I want to see the market continue.
To move up words.
-- -- at some point you gotta look at the trend didn't say it's in an uptrend and you've got to buy it.
So we have that those -- the things I'd want to say.
Alright by the way for the record Craig picks Google Amazon and Salesforce.com thank you guys good stuff I appreciate Stratton really present on your watch you saw that sixteen trillion dollar -- you're very proud all of -- What's at -- for the financial mar.
