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Our district reporting the Dow Jones industrials to this melt that's why not because last week we -- we saw that.
-- rights -- 151000.
And told new record high what is is all the talents is the market inflated or is this -- sign that the economy is.
Heading in the right direction what does -- tell according now president of -- financial Matt McCall and chief investment officer for Leventhal asset management's a Jane played the ball.
Net net let's start with you so what are you telling your clients -- that they're they've got to be calling you and seeing one of two things.
Get me and bought high or I'm getting nerve.
She actually get a 5050 -- know right now have to clients are saying let's get in the market 100% other clients are saying let's take profits and get out.
I'm going with it by continually inevitable as you know on the show for a couple of years I continue to believe that we still are undervalued even though were -- -- Basie record highs on the market.
I think valuations are good.
And I think you have to go to the Fed the Federal Reserve continues -- pump money in this market and I did not see an end that anytime soon because you put numbers are not getting better and that's what they're basing.
An idea James what are you what are you telling your clients well pretty much as soon as we say don't fight the Fed they kind of -- the line.
So certainly we're getting some calls saying what do you think is -- a -- -- -- here but really as soon as we just point out the obvious that the Fed is.
Going to keep interest rates low for the foreseeable future and really it is a long way a little bit lately they've been making noises about their on their last their last meeting they came out and said.
We may adjust up we may -- down so they're talking about adjusting.
-- quantitative easing their buying of those of those bonds I think that was a way to give themselves room to be more quantitative easing not less.
I really I think -- -- going to be on the gas pedal I don't necessarily agree with that but I think they're clearly saying.
You know gonna keep our foot on the gas -- are and I know it's of don't fight the Fed rule is of an important one but I've been watching.
The revenues on the S impede.
Companies that are reporting and those revenues are not coming down a little they're just common -- coming down and coming down well you -- only squeeze in -- so much.
-- they are slowing down and but I think that lends it to the fact that the Fed will continue because.
As the revenue slowdown so the growth and GDP in this country which we know stagnant at best they're ready.
So now you have that that the -- -- consider again unemployment rates not very good in my mind you put that -- together time and there's no way the Fed is gonna you give up now they've they've gone so far they can't give up until they can turn this economy around and it doesn't look like it's turning.
Around they're not gonna you -- you were smiling Jim wonder what I saw I was talking about the revenues -- and well look I think your point is dead on but here's the thing.
The stock market is really the only game in town right now if you're a saver and this is what Ben Bernanke wants if you're saver you can't make ends meet you can't get here.
-- come to meet your cost of living adjustments -- you gotta be in the stock market.
Unfortunately I mean that's you don't want -- -- -- your risk averse savers in the stock market but that's where they're gonna go.
Ben was doing this all by himself.
-- -- lowering interest rates but printing all that that funny currency.
And -- ball or kept going lower warlord now we hear Japan says hey we're already under the same thing.
And -- even Sweden for heaven's sakes Australia they're all jumping into the Parker game insane I will see your lower currency end up the ante.
And south -- just did this week as well south tree came out lower their interest rates once again you're seeing all countries.
Devalue their currency the only reason in my line a US dollar's going up to this the best of the worst.
I mean having colleges trying to -- -- knocked on the currency but increase exports mean that that's what you wanna do it helps your economy and that's actually gonna hurt us eventually when the dollar keeps going sitting at this poker table playing poker and I got a bigger pilot chips are Abraham but their worst next not done.
This is not gonna end well.
It's not gonna end well I think I know where you're going you're going to inflation and that's good the logical outcome but here's the thing where -- we seem to be so far off from having any inflation.
I mean if you look at most of the commodity complex it's really -- a true bear market here maybe not crude oil but certainly copper.
Natural gas precious metals.
It it looks kind of beat out there as far as inflation goes are you ready do -- -- era.
A hair trigger ready to go well you listen that's the point this is this does feel a bit like a game of musical chairs right now I think Matt agrees with this.
The music doesn't show any signs of stopping but you're darn right we better be ready to -- that when you when you think that needles coming off the record player if you know.
In the investment business is that there's two types of clients there's the kind that have given you -- sign the power of discretion to let you sell or buy when you feel like it for their account.
Most -- and so.
The law says you've got to get their permission first are you getting more more people signing up to basically let you pull the trigger one -- the second you want to.
I'd say overnight 5% of my clients let me pull the trigger when I'm ready to pull the trigger of course it could try to -- all -- mall in in hectic market is now an.
Trying to catch a top I mean I think you might -- agree distant trying to catch -- tops and possibly -- to try to get that sweet spot near the top.
But at this point you know my fingers close to the sell button but it's been -- for a few months and may be different of the year.
And I'm ready Fuller but at that same time I've been lacking -- bite but with my other hand in you know we're very rare that bears make.
Money bulls make money pigs get slaughter that's right.
And look I mean I think most of my clients as well and probably 95% give me discretion I will say for that 5%.
Who are old school we do that this solicited trades yet -- that's actually good to have a talk once in awhile live with a client and make sure that you have your thesis down on why you're in the markets and why you're -- individual stocks.
So I like doing that but by far most of my clients are discretionary.
Hold on it and hold your breath for third act is what you're doing right now not applauding it up just observing -- -- It's -- situations where -- we can sit here acting game a thousand reasons not to buy and it is stocks right now and we can all come up a bit but the same time I've had been the scene excuses for the last four years you miss that any S&P up what -- 120.
-- -- -- And there's all those old studies about the fact if you were not in the market on like six days in the last twenty years something give their return was much much worse so.
Period -- he -- McCall and James Leventhal thank you gentlemen thanks nice to see you Tom.
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