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Will the Market’s Record Rally Continue?

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    MarketWatch senior columnist Chuck Jaffe on the market’s outlook.

  • Duration 4:00
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Yet another record breaking day for the Dow closing in the -- ten days in around ten days -- them at record highs.

Meanwhile the broader S&P 500 also logging gains -- two point shy of its record closing back in October 2007.

Wow.

MarketWatch senior columnist Chuck Jaffe joins me now with the latest.

So check here in the market all the time you're talking to people experts pros strategist what are they saying about how long this rally can last.

Well I actually they've been sitting at the rally can last a fairly long time but.

That we're sort of overdue for some sort of a setback so I hate to call it a correction because that would imply that the market is only correct when it goes down.

So let's call a retracement or retrenchment.

Because what they're all talking about is that the market is overvalued it can stay overvalued for awhile but at some point it's gonna have to take a -- -- Breather though most are not expecting to be like.

A bear market they're expecting it to be may be ten to 15%.

I'm -- to the 5% that's what our sources have been -- I have to tell -- these guys are never right yeah I think this credit thing all the time and -- it never hamsters out.

-- -- -- -- -- -- -- -- -- -- But let's point out here's the important thing.

Back ten days ago when the market basically was reaching its high and everybody was was sort of celebrating it.

Everyone was saying at the same time it's gotten to a high and now it's got no place to go but down.

That's not really true why there and the bigger thing is for folks were saying now -- reached a peak it's -- immediately go on some sort of a downturn.

Well let's hope that they didn't get out of the market concerns the nice Little Rock.

You know I -- -- -- about Fidelity and black -- group they're put coming together in the new alliance to offer ET -- What do you make -- this is this good news for consumers will this give them more options.

Well this is fantastic news for consumers because it really sort of escalates I hate to use the term ETF wars but that's kind of what we're seeing you when I talked a few weeks ago about Schwab and it's one source program.

That was expanding the number of free ET -- This takes that a step further and while Fidelity and BlackRock are not offering as many free ETF -- Schwab is offering.

They're offering some really popular ET yes and that's a big big difference that because I want -- -- often.

Yet exact if you wanna do we TF trading getting the ones that have big liquidity that how big market share that's going to be the places that you wanna go.

And now they're going to be able to get those on a transaction fee free basis so.

No trading costs and ultimately that's what we'd like to see the entire industry go.

This is a big step -- -- more competition good for rats we just showed folks -- awarded to get these numbers add the free ETF suffered by this new BlackRock Fidelity.

Union 65 Schwab a 105.

Now you weren't so thrilled with what Schwab with doing why was that.

Well the problem with Schwab is that those 105 ETFs.

They only represent about 3% of the total assets three to 4% of all the total assets and each yet.

Whereas the Fidelity 65 represented.

About 18%.

So what you have which Schwab is a lot of funds that are very thinly traded.

-- OK great they're available for free.

But if you're blinding -- NE -- that has a liquidity problem.

You're not getting good execution so great you might save the eight bucks on the commission.

But you might give up oh well I'm more than eight bucks gets you didn't get a good price I now indication what they don't know what you are still have second -- -- Yeah and -- you know what.

There's a very good thing that's gonna come out of Schwab which is eventually they're gonna have a lot more than a 105.

And you'll get more and more big names and it will help get the industry to -- your commission free.

And -- -- -- how we got repetition helps individual investors more people trying to make these offerings.

It's all good news Chuck Jaffe thanks for coming and tonight act and that's always a pleasure hard.

And really appreciate your gauging what's going on with individual investors thank you.

You --

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