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Schaeffer’s Investment Research senior equity analyst Joe Bell and Firstrust Financial Resources President David Fleisher on the outlook for the mar...
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Today so let's get back to our market have a tell -- -- a threat -- Deepak can you -- problem.
He could finish your thought go ahead he had just talking about yeah obviously the markets sold off here a little bit in the short term but I think when you take a look some -- -- strong we're up about seven consecutive weeks on the S&P 500 so perhaps in the short term.
It makes sense for little breather.
At safer we -- the study looking back how often is this seven week streak in history during the past.
Four years it's actually only happened about.
Eleven times so it's not that common.
The question is what's happened win that streak -- occurred.
-- out about one or two months we've actually seen outperformance vs typical one and two month return on the S&P 500 so perhaps little short term consolidation but.
It -- hammers home that sometimes trends can go much further and farther than most people would believe.
David there's one problem that Elon -- does not have that he -- he did have done a lot of corporations do which is that they have this cash -- Elon Musk of course is has been a little cash short.
But a lot of companies have millions of dollars billions in the case of companies like apples hundreds of billions.
What happens if that money is deployed and what happens if it is not deployed does that effect that the future of the markets.
-- -- -- Does it's one of those silver linings -- -- on the short run I would I would agree with my point counterpart.
-- all bets are off in the short run there's plenty of headwinds but you -- a few of the items that keep us somewhat cautiously optimistic over the long haul.
Is the cash.
On the balance sheets of corporate treasurers and CFOs who are still on the sidelines once that cash really starts being deployed in a much more meaningful way.
That that is clearly a driver of that and all -- -- you said -- -- what he has said in a much more meaningful way does that mean that you haven't seen the signs so far.
That it's been deployed to deploy world affect the economy the markets.
And -- you know reports perhaps as much as two trillion dollars on the sidelines of on invested cash on corporate balance sheets in total.
Depending on report so there's been some and we've clearly we've we've had to pick up in the markets have been relatively optimistic.
Revenues.
Revenue projections were -- about two thirds of the time this last quarter that's another positive.
But ultimately corporate spending.
Which hope will be tied into to earnings across the board will be either a giant plus or minus.
Over the next coming quarters.
Here's what's gonna drive plus and that's housing and granted today we got the number out that did not look as healthy but if you picked out at least single family homes are still look pretty good show and you're bullish on the housing sector.
Talk about why it does does today's news shake you at all.
In the like he's -- in this short term yeah we had -- Toll Brothers worse than expected report and some mixed housing data that the stocks reacted negatively to.
I think that's one again you look at a bigger picture perspective.
Historically those pullbacks -- scary pullbacks have been pretty good buying opportunities.
And I think just all the skepticism we've seen towards homeowners stocks could -- bode well for them going out the longer term.
Joseph -- David Fleischer gentlemen good to see a thank you very much very -- -- you.
Thanks for having -- as.
