Fox Business
Expand
Browse All Video
Watch Live

You're watching...

Can the Dow Keep Going Up?

Details

  • Description

    Capitalist Pig Hedge Fund Founder Jonathan Hoenig says there’s still room to grow for the Dow.

  • Duration 4:14
  • Date

Clips

Also in this playlist...

Latest Video

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

Of the capitalist big hedge fund.

-- great to have you on the show again so we think -- another 33 points -- place we have never been before now on the Dow can this continue.

It indeed it can -- mean there's an old saying that there are no tops in a bull markets and oftentimes we think of is being.

-- high is as you pointed out just.

-- -- And right now all of the market's trend which in my opinion is the best indicator of the market.

Is higher the trend is up it's up in big cap stocks like.

Yeah has been done a thing you know the other old saying in the market right.

Trees down credit this guy could affect its member yeah.

Dean -- I have to say I want her thrilling either at this guy now I -- we're not seeing for example the huge overvaluation that we saw 2000.

We're not seeing them rampant bullishness that we saw in 2000 and I have a -- it.

-- one or even -- at this guy I mean -- the Dow is at an all time high but if -- adjusted for inflation and actually have to get to about.

151700.

To actually get a real all time highs so.

As high as well timing that change really good point actually and it's something that economists make all the time its stock strategist never do.

Yeah if you take out the effects of inflation the improvement is not a significant.

I want to talk to you though also about the jobs report is we have a consensus expectation of seven point 9%.

The monthly report -- creation of a 160000.

Jobs.

When you look at that.

I don't know you now -- this is.

Between the stock market and what's going -- of the economy that affects you and me in every other American.

But I -- it seems like that but keep in mind into the stock market is a leading indicator doesn't reflect with the economy's doing exactly now as much as it anticipates.

What it's gonna do 6912 months down on the line so.

As weak as the jobs data has been as of late I have to say I think that the jobs picture would be a lot better had not been for all the intervention -- All the stimulus except -- that we've seen the last number of years but my sense is that as long as the Dow's bullish momentum keeps up.

We're gonna start to see those jobs numbers improve and -- approving at a snail's pace -- happy about that but.

Again I think that that the strong market is a good harbinger for better jobs number out.

You know highlight what you say about the government intervention holding a private market back -- that I see that again and again every time we talked to a CEO when you talk to somebody in the real world.

What they say is -- I don't see what I am not sure Obama cares and the due to me at at my -- to cut my taxes I'm not clear -- Not sure what the rules and regulations are going to be.

I'm pulling my horns I'm not gonna spend and I'm not gonna hire you see that over and over again where that to change what would happen to the economy and the markets.

Well I you hit the nail on the head -- mean both of individual investors who have been so scared by -- the government related crises of the last couple years or with big CEOs who have literally billions of dollars at their disposal.

Government's involvement -- -- markets has essentially paralyzed markets -- a lot of people apprehensive to invest to hire her to build new plants and it's everything from Obama -- to environmental regulations on the line.

It that affect.

Always taken away I think -- see tremendous growth in both and quote real economy in terms of a jobs and hiring eccentric.

And also -- -- performance and financial markets as well I mean.

And the government doesn't create jobs government doesn't create and help it ideally simply protects us hasn't been doing that such a great job of that Alaska.

Well you know there was a silver lining though here today we got a report -- US household wealth.

Return to its pre recession peak I like to -- that's all that housing prices but I don't care I'm glad to hear it's good news you agree.

But it is good news although again and he got factoring in inflation factor that -- 66 trillion back in 2007.

Adjusted for inflation we should be more like 73 trillion of household wealth today that they -- looking -- Jerry -- here isn't so much about the stock market.

It's more about the bond market and the present them.

What I see is being creeping higher inflation of course the government doesn't say it exists I see it existing and I think that's gonna be the next big -- shoe to drop for investors in the -- Our thanks so much more talk about next time you come on but I agree -- let's get to 1510161000.

Bringing more like -- thank you for -- tonight thanks Jerry.

-- -- on to this day in history this is one food holiday.

Load More