Also in this playlist...
This transcript is automatically generated
A more money is flowing into the markets and more money hit the markets last month.
-- since the dot com air we're talking the last decade twenty point seven billion dollars of inflows were recorded in the month the January that's the most since April.
-- 2000 but my next -- says this is happening to -- eight.
What is happening in the US economy Scott -- the united advisor -- market practices there.
All right -- saying that this is all despite the fact that the economy does not look good in your opinion Scott what's the problem.
A lot of things surrounding take your pick out one thing that I think directly impacts consumers and how much money they have to invest as it is wage growth right I mean.
If you look at wage growth just in the last say employment numbers it's it's -- existed in fact it's flat to just slightly up over the last one in two years and if you adjusted for inflation.
By the way it's not up it's actually negative so.
-- people don't have as much money -- discretionary incomes that are not putting as much money to stocks because they know the economy's not great.
Household balance -- -- talking about house a -- kids what we have seen.
The housing market continued to recover really turnaround in many people's opinion and -- also saying that unemployment number.
Kind of jump up a little bit but still these inflows still the movement into the equity markets is that because this is cash has been on the sidelines the people -- to put to work all our.
Is it because the bond market is such a bad option right now.
I think that's totally -- -- I think money is flying out of bonds faster than you can counted and what's happening as.
Share with money market rates again near zero should that it has to go somewhere and and the way to get that return of that total return.
With dividends included is equity markets so you have to go in.
To say stocks here if you're in -- bond say because you don't wanna guys see the deterioration -- prices rates go up as they have been around the world in both.
In the US and other countries -- you have to see other money look for something and that's going to be equities with dividends.
I I guess what it's -- really do about you know this is the lesser of two evils that and you know fair enough what their earnings so far certainly a lot of companies are beating but and the estimates -- lower.
At the same time several times you come on the show several times and talked about.
High yield corporate bonds.
Do you study and that and to be fair here that spaces as not really done -- well -- in like money is leaving that space as well do you stick with us.
Well I connected is very young and -- -- bonds have been pretty good considering.
They've given you almost an equity like return -- with half the volatility it's kind of like.
The hamburger that has half the calories and all that all the -- taste because really high yield bonds -- if you look at the bonds space right if you look at high grade corporates you look at US treasuries.
Those yields are are compressed I -- they're down around 2345%.
High yield Jason you can still get 789%.
And again not a lot of bill vol.
Sodium daily market's got -- who were looking at those charts not sure if you can see it but the returning to -- -- the last three months the return has been negative.
An even over the last year because like a 1% returns or even on LQG what's that's I'm asking you -- staying with that as it seems like.
A lot of money has moved to wave from that -- Yeah and -- it is more the high grade corporate -- the high yield is more -- Ph.D.s of the world that.
Al-Qaeda is still does have.
A higher yield and C a treasury bond does which again I think you're gonna start seeing a lot of outflows coming from.
An offensive on equity is and you know lot of daylight today I think our viewers are gonna kind of feel the same way as -- saying the data -- a 136 points.
You -- got a couple of ways sector plays that we can be defensive if things go south and the market to sectors like Scott.
Yeah how about sectors here -- a consumer Staples XLP people have to buy shampoo toothpaste and toilet paper.
And you know what happened in New Orleans in the Super Bowl last night -- like utilities and you can't tell you look that good dividends and they act defensive when the market gets nasty.
Okay maybe even -- there was a stock play you until the play out a New Orleans I'm gonna be a little more picky than I would have been yesterday afternoon or Friday it's a good point.
Scott Martin thank you very much for going to be following earlier thanks thanks got.
Currency of them.
Filter by section