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It's let's get straight to today's action securities -- we have Peter Kenny is Knight capital managing director.
He is warning of increased volatility says investors have to get defensive.
Ron -- RDM financial group CEOs last stock pick is up 8% Cindy since he told you to buy.
He's back would war plays how you can make money and Larry show wears a depends of the CME.
Larry I wanna start with the UN let's start -- the fan I mention the Fed.
Meeting they hunkered down today tomorrow -- they're gonna come out any expectations from traders there about what the Fed might do.
What big expectation is is not going to be any major policy change although vernacular for probably change and that's -- were looking for.
-- the labor market they need to come out and say it's frustrating.
They need to say is something -- -- -- with regards to the inflation discussion that we're talking about is it disinflation or deflation.
And the -- change or something it would really help everybody has -- -- the new exit strategy be for them to be a coupon clipper.
No sale but they're gonna continue to be coupon clippers but the balance sheet rock I think that's what people are looking -- all right but that wouldn't that alone spoke to market wire.
I think -- -- at some point and -- -- balance sheet is so gigantic so enormous.
We have no experience in dealing with a balance of this -- -- at some point we have to come to terms of dealing with.
So Peter if if all -- fed does is clipped coupons and they don't -- anymore they just let these these ones expire would that create a market downturn.
-- it would certainly create volatility in the likelihood is that the default action would be lower.
Because it it ships -- the policy focus from.
An extension of current policy to something that's less supportive and that this particular context equities.
It's it's -- distinct possibility I'm not expecting it I think we hear more of the same.
But let's face it the -- some -- -- gains that we've seen.
Have got to frustrate the Fed.
And there has to be some sort of the next two were adjustment to address that well and -- -- that's the point is that other than the stock market itself which -- easy money.
And perhaps the real estate market we have -- real estate -- some of that is due to the low interest rates although.
Frankly they were low enough before when people -- by so what good other than pumping up the market has the Fed actions done.
That the Fed's idea is just the driving.
Money into risk assets they're doing it.
Not just this bad but three other -- around that the world first time ever you can't fight -- So I think this is the only game in town.
I agree with the other -- -- They're not gonna do much because unemployment staying you know -- seasonally -- so.
I I think we don't expect much from the Fed and I do think people are going to be exiting bonds and cash and finally getting the stock market though that's not necessary the right thing to do.
By the way he we mentioned the -- the ECB the European central banks coming out with -- error.
Meeting in notes and and the information about what they're planning to do with with their currency on Thursday as wells was a big week for central -- Larry let's focus a little positive news Japan.
The Wall Street Journal had a piece today about how some of the gloom and -- -- Japan is.
Is fading away and there's a lot of optimism now what do you believe in Japan.
Long term I don't believe in Japan and I think that.
The fundamentals behind all this is just a lot of smoke and mirrors what's propelling a lot this right now what we call the carry trades -- become so cheap people borrowing -- And went down another currencies -- that's judgeship division there's some governmental ship that could be a big problem I've had we've short term I think.
There's a lot of things underneath best keep the mind how many prime minister they've gone through an elaborate financial prime minister they've gone through the last seven years -- -- has closed up five.
I they have a long way to go but it's nice to see baby steps but it's pretty aggressive at this point OK well let's bring it back home run and talk about apple first -- -- -- great news on apple of course.
There issuance -- seventeen billion live in bonds is is exciting the market the stock was up 3% today it's been up significantly over the past couple of weeks.
Is apple back -- Well -- I was on last week when apple after now apple allows announced their earnings and do it is a pure pure thing you got to buy apple because -- the analysts almost universally downgraded it.
Okay well that's a buy signal to me and that we always thought apple was cheap.
Down here are down certainly at 400 with really cheap now.
About nine point nine times earnings.
They're still growing I mean they they're throwing this company up for dead that they'll never -- and so apple still buy in our minds it was certainly was a screaming by.
Down around four.
Hundred -- -- in order to buy apple products or any product people have to have money in her pockets and the fact is is that the income situation is not a lot better.
On a part of most Americans who do you think that eventually it will play into stock numbers as people continue to spend less because they have less.
Well yes however the improving climate that we're seeing perhaps for -- housing for house appreciation home appreciation.
The marginal uptick in consumer confidence that we saw this morning and the modest but consistent improvement in employment trends.
Though not dramatic.
Are definitely bleeding some confidence and I suspect in the second half of this year.
We'll see more confidence in an uptick in consumer discretionary spending.
Which would support the likes of the apple the large cap technology stocks that haven't I'll focus on the consumer -- were on we gave it credit for one stock that's up single digits but you recommended Starbucks last time you're here they -- there up 31%.
You still think Starbucks is a play.
Because of emerging market trends explain.
We're always looking to sales to emerging markets was that 70% of the globe.
Starbucks by eighth 2014.
Their second biggest markets going to be China -- -- at -- company they've border bakery company that an open of 3000 stores over the next two years.
They got great management they getting more into that at the K cups.
They're executing on all fronts it's not a cheap stock.
But the growth rate.
It makes it by ear as well aren't well run you've had -- put us before Ron -- good to see -- Peter Kenny always great to see you Larry shoulder -- -- and a couple of minutes.
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