You're watching...
Zachs Investment Senior Equities Strategist Jared Levy on the outlook for the markets.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Want to talk about the Dow topping 141000 -- -- for the first time since the financial crisis rocked the world economy.
What should investors brace for a painful correction that's what some folks are -- -- -- Levy senior equity strategist at Zacks investment research joins me now right.
Tell me when he explain me what's going on with the stock market -- -- so happy when we have this.
-- jobs data and then the economy shrinking in the fourth quarter why is it going so high.
You know I think a lot about this and Jerry you know I we've we've we've talked about -- may times the past I was definitely more about their coming into the new year but I realized a couple things.
Number one is we've got to stop looking at the market as a predictor.
And realize it's only an interpreter.
Is only interpreting what -- it has right now if you go back to 2002007.
Think about this.
It 2000 we -- that dotcom fuelled rally.
PE ratios which is a measurement of value they were up around 262007.
Fueled by housing fueled by commodities that PE ratio about eighteen.
Now we've got a rally fueled by nothing.
-- GDP regret at Harvard GDP readings you know lackluster economic growth there's really no bubble other maybe China.
But yet PEs are down around -- are down around fourteen so in my mind right now it's it's still difficult.
I think we do -- the ability to empire.
-- -- -- -- -- Is it possible that that it look.
The only thing is that's working as a stock market.
Ben Bernanke keeps printing money it's the only Arabic class people wanna put money into -- is that I mean is -- that kind of circular reasoning I think.
Yeah I mean what we think about this right.
It were -- Senegal yeah I.
You know the Fed yet you've got the Fed just injecting billions of dollars into this into this economy into this monetary system we're monetizing our debt which we will reap.
Those.
Issues down the road but right now -- you said it there is no other asset that's performing the with the US equity markets will.
You know what people don't know or understand enough about China put their -- there you're still recession might lot America's on its way yes so this is the place.
Me -- -- this out OK so everybody on the floor of the stock exchange today so excited about Dow 141000 again it's it's -- you know it's thirty stocks people don't get too excited.
But the reality is this we've been here.
And it was seven years ago we didn't hear and it was seven years ago to me I remember that and I think I'll.
That's sort of disappointing that it took us this long to get back to where we -- be.
I would think the stock market should be moving ahead.
In a fairly straight lined not with big multi year gaps I guess I'd I'd like a lot of Americans out there.
Have been trying to save for retirement -- safer.
All kinds of things.
I wish she would stop surprising me and start acting a little more rationally now I know I'm asking too much.
But it -- you -- you wouldn't say.
It you know Jerry what when you when you look back at the past decade of the past twelve years -- you pointed out.
Think about the headlines that have driven us you know think about dot com think about tsunami Fargo wells bought houses out bubbles out well let me.
It's might be better now.
-- we muddle through -- we get through this thing slowly and Jerry listen for for the viewers out there I do think -- small correction here but I think it's a buying opportunity and I'm changing my tune but at least for the next year.
In less something crazy happens with China.
Or Europe.
And I don't think is a big chance -- -- I think the markets can't creep higher I'm scared I think there's a lot of names you should stay away from -- -- like Amazon which are completely -- But but I do think the market.
Can go higher and hopefully if we continue -- through it won't be as volatile as it's been but again that that's anyone's guess but right now there.
Aren't heading out there aren't always because some money and stock that's just the way at play.
Because I I usually believe in you know an American companies and the American economy and I wanna see it grow it's that I guess it's more -- I don't know that anything help you now.
Not really aren't rational -- -- -- divulge too much about my personal investing habits thanks for coming on tonight it was great to see you.
Thanks your great --
