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Joining us now -- their outlook for equities were commodity markets RBC capital markets precious metals strategist director of the CME's.
Comex division George -- good to have you with -- -- and I'm delighted to be here and president of Seaport Securities Ted -- great to have you with us this.
This little adventure.
In about 1 o'clock little after 1 o'clock today.
The unintended consequences.
Of new securities are trading regulations which have been implemented over the last seven or eight years.
As a result the reg NM SN FCC rule changes.
This is the world we live and I mean we're still trying to figure out the flash the flash crash from a couple years ago we still don't have answers to that and here we are again.
Its interest and we don't even have.
Any as far as I've seen any any journalist by even talking about the fact we don't have answers still.
As to what occurred -- your your thoughts on our first the markets the regulation the result.
I think overall you have to realize that we are still the most liquid.
And the best market in the world.
If you think about the amount of money that changed hands even though it was not -- really volatile.
It was able to change hands -- I -- -- drive toward the Georgia I'm with you I mean I believe that we should there should be a premium.
In US markets just because -- the US markets the most we are -- -- haven for the world but.
It's about time we said to it seems to me there weren't gonna put up with anymore -- nonsense because we're getting played for fools whether it's dark -- whether it is -- you know.
Crashes this nonsense today.
The SEC saying go ahead you know.
Public notice put -- on Twitter you're all good were social media -- -- it's the 21 century think while I mean I have got great problems with it I think what as I said at the outset it's the unintended consequences.
A rule changes which nobody had any concept how would end up and the markets have basically been -- -- liquidity issue aside for the benefit of of -- people -- -- computers and a lot of capital at the expense of the public and I think it's undermined the integrity of our markets.
The -- -- we hear that transparency of our markets.
And I think that that the government knows not what it does -- at least when it comes as pretty secure our.
And you can't get away from globalization money now blows -- and are gonna rock country to work I got a truck.
In seconds and minutes looking for -- opportunities and if we years ago we have limits in commodities.
Price limits and we would have time to find the other side of transactions -- there was -- board found today we don't have that luxury.
And we have to send intraday margin holes to clients.
When the round the world there around the world when these wallet filled things occur yet.
But at the same time.
The Commodity Futures Trading Commission doesn't -- comedian to -- -- one -- smarter than it was.
Forty years ago.
Hi I have I have are familiar -- -- -- -- and why your mirrors are okay we're gonna have another dip because -- finisher by major all right -- we're we're sitting here watching a lot of games being played.
The -- equities market that's a commodities market.
Our party tip my hat to the security these markets -- there should be a premium.
That sent there also needs to be regulation yet and this business that because it's globalization.
You know it was a big old world before.
There's nothing new about the circumference of this glow our regulatory arbitrage is now and you are hop.
And the point being and the point being that if you look at all the major ills that happened in commodities did not happen -- a contract market.
In this country.
Either under the CFTC.
Or an exchange -- jurisdiction.
Right all of the major problems happened overseas.
Where we did not have.
George it's globalization.
I can't believe that you would -- about off on our fine friends around the world.
You can't do that and equities stagnant well they're trying to do an equity -- what's the point is there has to be a moral authority.
It's not about who's got the -- -- computer and who can trade the fastest it.
Undermines the integrity of markets it might be good for a handful of people to Goldman's taxes of the world or what have you.
But the vast majority the investing public is left and it left in the dust.
That investing public left in the dust most of that investing public George has left.
Commodities in the dust they blocked equities in the dust for crying out more out there -- -- leaving.
All fronts in the dust we are scaring that double brief -- that they'll all out of the retail market.
Think about the money it's it's there to be -- If the markets were just understand that it's time.
To expand a little bit -- not just geographically.
I think you'll find that in commodities yes.
Open interest open interest number of long and short contracts has decreased a locked in the past year.
And that's decreased because there would -- a better opportunity elsewhere in the up.
Up stock market was furniture -- and so money managers always been -- to Wear.
The best performance was -- is being challenged as a safe haven right now certainly.
Gold was misunderstood our -- -- that's out that's where -- I think gold.
Was perceived as a hedge against building up and down stock markets and it really is that.
Is -- hedge against loss of purchasing power.
And gold is the hedge against.
In currencies aren't is it still -- paper I believe it is.
That they give us your thoughts about what we are going to see on these markets and.
In the weeks ahead.
Well -- is smack dead in the middle of earnings reporting season.
We're looking pretty -- that's right about 70% of the companies that have already reported had beaten out -- it is true that the guidance has been gained.
Down pretty low but that they seem to do it every court goes out on a bike now right -- them I'm sure when it's all said and done it'll be 70% of the companies that reported the but that'll be the focus for the next to a few weeks and then then we'll go back to the the the economic numbers you know two steps forward one step backwards and all the other problems that we have to do in the war.
-- both -- -- reform about to report for our our audience here.
I want all over Beers and other we've just received word that now they.
Not only -- the SEC looking into today's.
155 point instant plunge and that the -- of AP's.
Account but the FBI is now.
And that is -- that's -- or receiving George your outlook for gold group report please I think long term you have to be bullish.
George I like bullish in your name and commodities equities and I -- I think it's wearing very bullish cauliflower Lovett Iowa by the job we appreciate it and you --
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