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Of that -- and meanwhile let's get pumped out of the doubt it started down it was up it's got its back up maybe eleven points 151000 to 86.
This -- but despite a jolt of bad economic news on a couple -- earlier today.
And rising on top of the record for that that that stops it yesterday.
But now time for a buzz kill because our next guest says that this year's record breaking rally for stocks not all good news and that just like the Fed did the housing.
It's creating another bubble right here that eventually you've gotta -- KC -- investments chairman Christopher is up joins us now Christopher.
And yet you're still put money in this market here aren't you for stocks.
We're staying with -- we have -- we're not adding new capital to the market because we feel like we're playing musical chairs over an alligator pit right now.
And it's only a matter of time before people start pulling the chairs away.
You have a nice saying you say sell when you can.
Not when you have to public that ballot 151000 approaching 300.
You gonna be upset if you were to start selling now on the Dow hit 161000.
I gotta say -- always willing to give up upside as opposed actually losing money.
If I end up making 10% in seven making 12% I can live with that on the other hand if I'm down 40% I'm going to be very very unhappy camper.
So we really want people to be focusing on where the risk is.
Where they can remove risk from -- portfolio and you know what.
Let somebody else have a little bit of that extra upside in return for making sure that they can sleep at night and make sure that they're protected if the tide does -- The old line about pigs getting -- -- you argued that the cash flow growth as far lower than the the market that the markets far ahead of that yet look at.
All of those seven the last cover this high.
You've got GDP 12% bigger exports up 26%.
Commercial bank after it up -- -- per -- personal savings of 20%.
This is a better economy now stop still -- here -- It is a little bit of a better economy but by the same token we've come a long way from that point and when you look at earnings themselves in cash flow of companies.
Companies have done a phenomenal job of managing their businesses but they're not getting the revenue growth that they need in order to sustain that growth.
You know they'll say you can only squeeze so much -- from the turn of you've got to get revenue growth to kick off and it's tough to see where that's gonna come from make no mistake the economy is getting better.
But you're talking about a market that is already being -- counting and that improvement.
And what we see is valuations are now at best reasonably priced and really most likely.
A little bit expensive and that leads us to a potential problem when people start to get more concerned about some of the other issues that we have facing us right in the next 61218.
-- -- hey Christopher and you see only had 10% upside the -- -- go up from here you see a 30%.
Downside that stocks will head down so when do we start getting out and what little singular too -- -- be looking for.
To great question and the answer is nobody knows for sure I'll -- -- you have to.
Thought well I -- -- -- -- it the big kid isn't that you have to sell when you can now when you have to like you repeated near earlier.
-- stocks always always go down so much faster than they go up and -- people start to see the panic button.
-- see the selling occurred they're gonna hit the panic button and they're going to escalate the selling pressure.
So gradually reduce positions gradually selling the business -- -- we have be thankful for the upside but I do not get caught flat footed.
You know to start selling don't want to watch for go ahead.
You value your your recommendations -- that we should short bonds which a lot of people said look -- bond bubble is gonna crash and yet they just keep going up in price.
You like gold mining stocks which never seem to do as well as the price of gold and gold is tumbling today.
And you like energy.
I mean no Google no -- But we actually also -- right now we own some some things like that.
We would not be buying them today trying to give the viewers an opportunity of where they can put capital where they should be allocating today.
It's clearly something -- -- gold miners as an example were probably early.
But we believe that there's a double in value over the next 124 to 36 months they've come down -- price 506070%.
We want to start accumulating those positions.
Energy still looks very very good to us that's a secular trend we're look at bonds the Fed is going to take their their -- off the accelerator and when they do.
Long term interest rates not short term necessarily -- long term interest rates are gonna spike and people are going to be very very.
-- -- Sorry if they did not trim their positions -- reduce their durations.
Or if they're looking to make profits actually shorten those long positions as well all right well thank you for that very reasonable buzz kill Christopher's good -- you.
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