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United Advisors Chief Market Strategist Scott Martin on the market outlook and how investors can gain from the market’s growth.
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-- like the market is still far from a full recovery but many stocks are actually soaring nearly 100 S&P 500 stocks are now hitting are coming within 5%.
Of their all time highs since the crash in 2008 investors have been skeptical about getting back in the game with good reason.
But are they right to sit on the sidelines or have -- been missing out on this whole thing.
Joining me now is united advisors chief market strategist Scott -- Scott thank you so much for coming back on the show and the first you know this morning when I saw that -- -- stocks were sitting near near all time highs was.
So many people out there have missed bids because they were burned by the crash they feel like the market is rigged but here's proof that you can make money.
You really can't I Mena headlines great right I mean that's that's a great story for the market and if you look around and look at the indexes it's it's certainly makes sense.
I think you're right I mean I think the average consumer out there Melissa has been burned.
Really badly in the last recession and I think companies have -- you know I think that's the other thing going on here.
What's really behind this performance.
From this company stocks to -- its profitability.
Profitability in companies is at all time highs because they're not hiring people and -- getting more of the workers and their stock prices are.
Are benefiting from that.
Yet you know my five year old told me in the car this morning that I should -- apple and -- stock.
And I I guess -- he had said that a couple of months ago he'd be genius because it's -- it was on its way up but now those are two of the stocks that are sitting at all time highs would you pile in at this point.
Or does everyone including my son.
Know that these are hot stocks and it's too late.
Well I think your sons right because a couple of things one is you know Amazon and apple especially apple to me is when those cold -- -- it's almost like consumer stable at this point.
And I think when you look at stocks at all time highs -- -- -- -- -- what's in their business model and what they're relying on going forward and listen.
Relying on the consumer here that's out there spending some money these days is probably good things -- yes I like those two areas the market.
Relying on the consumer that's out there spending but does anyone really have any money to spend at this point or have companies sort of I mean these are the ones where if you had anything you went out bought their products.
But have these sort of you know strikes the leash as far as they can -- they've cut their costs as much as they can.
They soaked up whatever money is out there but how much is left for them to continue to make.
Well listen I think it's more than people think and why because we -- I had this conversation last year and people -- profitability topped -- look what's happened.
We're still growing so that's good.
But your point it's really an interesting one you know companies are sitting on -- amounts -- cash.
And they yeah they're using that cash to just really sit on their balance sheet.
And Philip Collins not really to go -- R&D capital investment things like that but they actually have the money that it they -- to -- they could pay more to people and that it would spend more but they don't have to because let's have a job posting out there 20/20 five people show up at.
The same job you know Scott it if you're an investor at home who's sitting there -- is saying to themselves I've been sitting on the sidelines all this time.
And I'm -- now dive any do something what is one thing that you would tell people the DO.
I would tell on the take their money and put it in at increments because like you said you know we -- all time highs.
But certainly I think we can go higher here so I'd put money in over the course is -- the next six months and watch season Audi.
The market tends do very well in the fourth quarter of this of the year we're coming up to a fourth quarter right here I think that's a good spot to be and OK Scott thanks so much for -- -- us always great CF.
