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Former NYSE CEO on the Dow’s Record Highs

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    Former NYSE CEO Dick Grasso on the outlook for the markets.

  • Duration 5:06
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Parts of the man now was there when they reopen the stock exchange after four days -- was shut down payment of the nine elevenths -- attacks.

And he said it would be wobbly it would be rocky but eventually we comeback he placed his trust in the folks at the exchange to turn things around.

And just average Americans who -- a look at no other alternative.

Here we are at a record.

A lot of folks are saying this will be tough to sustain.

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- It's always wanted to reach a -- -- to win the Super Bowl very tough to repeat or keep that number one status.

Hey -- great to be with you and my thanks to those kind words.

That's very true and and we know from history that markets.

Don't go up in a straight line but I think need.

They say here -- who are looking -- today's -- in.

In that gallon certainly the SMP within 26 points.

That's all time high are forgetting the compare our there's two post.

Post seven.

And -- 1998.

Really don't fit -- 07 Neil.

The rallies we've driven by the financial was primarily the banks and the homebuilders and in 9899.

By -- NASDAQ bubble that you know once they dot coms were dot gone.

We saw a tremendous pull back and I think there's something to be learned when we look at.

Today's Dow and S&P vs the NASDAQ.

And NASDAQ is nowhere near.

Its peak of 19992000.

-- you know.

Will there be a correction -- Absolutely you know you have to expect that but.

We have to remember corporation just over the last four years have gotten laying.

Their cash heavy when they look at -- portfolio of investment opportunity.

Where would they rather be in Europe in Asia.

-- in the United States and you know I think the answer is pretty self evident.

But there will be held there are still a lot of investors sitting on the sidelines -- with a lot of cash.

In cash funds that are earning them zero weren't bonds that will carry a risk proportional to their maturity factor.

They're waiting to get and then of course which you don't want to see happen is to the public.

-- simply roll it in all in one fell swoop.

Whether you whether you take gave a measured approach.

And Sam gonna do three legs or four legs.

And and ride -- if you will.

The -- that's going to -- and and reverse Smart way to do it.

They should be looking to their financial advisors.

Were doing their homework.

Quality companies yielding better than the ten year treasury I think will provide a very handsome greater -- I hope you're right addictive of the market history suggest that markets I know climb a wall of worry but we do have a lot more worries than we did -- -- 2007.

The level of the -- is double.

Those on food stamps is close to doubling.

The role of the government is is is much bigger.

Taxes now are much higher.

So you you're right markets -- climbing get past that.

But you talk about companies and how they're committing their cats most of them most of them are branching out of forming new businesses there either buying stock.

Buying out competitors or solidifying their positions within their respective markets I don't know if that's an encouraging.

Bullish long term side.

Well from an investor actually imported -- let's remember.

The reasons that companies are still either contracting their capital bases or paying out dividends is because.

The DV gridlock we see in Washington is still at a level of uncertainty.

Remember this market has rallied to an all time -- high and congress is out of session.

What we we were told that sequestration.

Was gonna send this come -- this country upside down and we all know that was nonsense.

I think what sequestration may prove.

It's one of the smarter things that Washington has produced over the last four years I think right now -- American companies -- and I don't mean just companies that.

-- ride a portfolio of businesses here in America companies.

Based in America but who have global franchises.

Are saying to themselves.

Europe looks very very choppy in Asia ex China looks very very choppy I think that the opportunity.

Either grow by acquisition -- grow.

By organic expansion.

He's going to mature in the next six to eighteen months I think we're -- be pleasantly surprised my friend you know I -- -- right.

Well you know one thing that history has taught -- when you bet against America you lose.

-- that depends on your time period Dick Grasso it's always a pleasure my friend thanks very you do it gave me up thanks so much well -- -- point.

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