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With the market at -- near highs where should you put your money let's bring in our all star financial panel.
-- rally -- Steve Crowley's American scene Jamie Cox of Harris financial group and rob Morgan fulcrum security it's our right.
Full disclosure here guys.
I'm dealing with a panel of bulls.
All of you -- too little and I think -- market's going higher I I guess I'll start by asking how high how fast.
And -- recommending here rob a 100% equities.
Not not a 100% -- every every investor has it has a different risk tolerance and different asset allocation but I do like stocks here.
-- on your show last euros touting his big cap dividend paying stocks but but I really think he had the bull market's -- broaden the small cap and internationals this year and emphasize those.
I like industrials and financials in particular.
RHL -- do you now what do you see for the market come -- ahead.
I feel the same way out -- I think we're gonna see at least sixteen handle on the S&P 500 and probably a 151000 on the bell coming -- very very same within the next twelve months.
And I feel like go also that technology.
Companies have Caribbean this -- sort of this market -- sell apple buys everything else and I asked that's you'll get that.
So I think you're gonna look at technology companies which have underperformed actually be quite well.
In this particular markets like why agree with the broadening the base I believe that your you're gonna see a lot cycle bonds.
-- okay.
Let's look at said move on to do what is really our viewers concern here.
-- I I hear your positive you know I guess in the back of my head I'm thinking where were you six months ago drug idiot that you're you're you're positive -- upbeat.
And were an all time high okay.
Our viewers are worried that it's the Fed pumping this market.
Full liquidity that it's the Fed's moves they're making this huge gain possible leaving an example Mike.
By the Fed pumping out money inflation will catch up to it.
And the market's going to crash again.
Rob I'll start with you.
I mean come on now where we're at the tippy top and you're gonna tell me it's gonna go to another tippy -- what do you say.
I tell you -- it is -- obviously the Fed has has pump things up somewhat but if you look at the four month rolling average on nonfarm payrolls of course we got another big report coming out on Friday it's over 200000 jobs at.
The job market is really starting to heat up in a positive way and eventually.
That's going to -- the -- 8% that I consensus that.
-- is why well but if that eventually.
Those jobs will translate into more spending and and CEOs are going to be forced again well they're gonna just be -- gonna take him to the ground and they're.
I haven't seen better.
Yeah so what do you say about the Fed's moves here and and how that's look.
-- it's gonna put your money the federal government is standing behind the stock market telling you put your money he would put -- money here.
Old Ben Bernanke's been deflation fighting for the last five years I mean they've been buying treasuries kinda.
You know get people to stop being stop hiding in treasuries and in buys something else a minute put that the Fed want you to do is that is the diversify how these fixed income holdings.
They want to promote the wealth effect and it's working.
I mean I've been sort of worried that it wasn't going to work but it seems like it's finally at long last starting to starting to work sealed letter our clients feel better about themselves now the senate.
Hello -- is -- I mean I do think that's interesting your -- I believe we should note that said people are spending on their homes.
They're building that kitchen a wide but that's a different thing than investing in the stock market -- to you.
Is this sustainable at this point I know -- -- but if the Fed were to pull the rug out from this market what would happen.
I think we have a real tough time getting up to 151000 on the dodge area really doing this other things to companies are buying back their own stock they're issuing bonds to.
Buy their stock back so that's happening I did a little bit of analysis for you Jerry if we go back to the year 2000 -- -- dollars 111300.
And just give it 8% a year on the -- thirty.
Today the Dow would be 30700.
So we've had a very difficult fourteen years and I think investors should be.
Particularly cautious going through the summer months June through September.
Well yeah Alex re run the tape what happened the last time we were at -- levels and everything fell apart right -- I don't think you know.
You've got to think given our history of the last decade or so even more than that maybe twenty years.
There's another bubble out there that's gonna burst legit what terrible here worried about.
Gerry I'd say eight Eaton U sanity you -- to stay in the last summer at this level everything fell apart at the earnings were much lower the -- were much higher it was it was definitely needs through bubble.
And I decide I think we can have a much more sustainable earnings base here.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- I think we're gonna get some consolidation here we're not gonna yeah are gonna have January February the rest here we're gonna get some traders on our network this morning -- I want to see the markets -- -- That's how healthy.
Yeah.
That would that would be a healthy thing that puts more fear in the markets although all of my clients are all you know might clients are all fearful they're saying earnings and express coming -- that's very good for stocks that's that's the that's a wall of worry it's -- -- and everybody.
Let's talk about history repeating itself that AIG eight.
Right now saying we're still we're re starting your mortgage business who want to get back -- what is this is signed.
That we're about to get into that go go phase of the market.
Go go phase of the economy were things they're -- control the bubble forms and here we are again.
Perched at the threshold of another bubble burst.
No I don't think so and -- did just one point I would say that household balance sheets in corporate balance sheets.
Are really really strong right now they were not in 20072008.
There's a striking difference there and that matters a lot when you're talking about investing in companies because investors don't invest in the market investing companies but the go to AIG.
What AIG is doing entering the mortgage market is there.
They're basically going to the correspondent land lending some of the most of the banks have sort of exited that business and AIG's they got for the market -- take advantage of it.
So I think that AIG is making a Smart decision here and they're buying mortgages.
Every good -- that want to do and that's it help if that's so.
I hope -- -- -- for them.
Listen guys you have been internally patient with my pesky questions and I am just giving you the voice of our viewers like Helen T who said this market has no legs it's artificially high and will drop like Iraq.
She is like so many individual investors out -- trying to make the decision thinking about.
Can I ever trust stocks again and -- course for complete disclosure here you should note.
That I in at least 50% in stocks and I always -- -- to -- rob thanks for coming on tonight really appreciate it thank you thanks so much.
