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But there -- the market trying to find out early losses on the back -- some better than expected economic news -- -- markets overreact to the fat.
Joining me now is Paul Schatz president of heritage capital what do you think was that never reaction.
Pretty much but every time Bernanke -- he's amazing that.
They print they print they print.
And they disavows it and -- print more exit -- again I think he's.
Perfectly balancing that seesaw between giving the economy given the markets what he thinks it really needs.
And calming the -- -- -- -- -- it sounds like what you said as we can't believe a word he says that doesn't make me feel very -- well I think he walks I think with since the crisis began I think he walks it's incredibly delicate line up of he he can't be fully transparent but I think at the fed chairman of the US ever told the truth during a crisis we'd all be on the floor it in the fetal position.
And you know everybody so worried about the exit strategy and what's gonna happen are are you concerned about that I mean do you believe that they have a secret plan that's gonna make everything okay.
Or or is it like so many people have said that when we see them head for the door everyone else is gonna try and race and beat -- to it.
-- a couple things I don't think that -- secret plan.
I don't think -- that we're in unchartered territory now so this is they can't open attack who can say okay if -- then B then C.
They're gonna have to take this really so I think people are worried that.
There -- -- -- 85 billion down to zero overnight.
-- would argue that in my lifetime.
The start the Fed's balance sheet may never return to the 900 billion dollars in T bills it was pre crisis.
See I don't think that's what people are worried about I think what they're worried about is when they say that they're even thinking about slowing down -- they just stop buying as much as they are.
That everyone's gonna -- and -- and try and keep them to the punch and that's what's gonna cause.
A big reversal in the bond market and everywhere else will be the panic reaction from ever were -- when they feel just the slightest movement from the bad am I wrong to be worried about.
Everyone does think -- I believe everyone -- think about more important everyone thinks they're going to be the wind out the door before the open pursue the door -- That's not gonna happen you know that but more importantly.
The fence Smart enough they're not -- it based -- disposed of the market the bond market especially because bond market Eagles mortgage rates.
This latest -- that I come right back to the game I don't think they're gonna all of a sudden.
And you think -- -- control the stem some sort of big reversal.
Mean -- -- because they did you know that the biggest sell out their do you think they have enough control that -- the market panics that they can regain control the market by coming back again.
And buying they've done it over and over again when QE1 left the markets -- who they came back that they've done it several times.
I would never want to fight with a guy who buys ink by the barrel.
And it's a losing battle okay what do you think of Japan overnight about making nervous -- -- that was -- huge selloff I woke up this morning I saw that I went tonight.
X yikes yikes is right.
But -- take a bigger picture look at Japan's up what 50%.
BM is down 28%.
Since that since they started their their whole.
-- gigantic financial experiment.
Can that happen here sure not to that magnitude because we have been melted up 50% think we did 99.
But certainly that's at the flash crash to the flash guys here -- the thousand points Kobe have a thousand -- declined overnight absolutely.
-- give -- your bottom line do you think that this is the beginning of a pull back on stocks here in the US I mean someone may go way has been true for years that are out.
It is still may it is still may there's still strive for people to sell and get the heck out of town you think we've seen our highs for the year when -- -- happen.
I don't think we've seen -- highs for the year so the -- to me the worst case the bulls is we just saw the momentum or internal peek yeah.
And you may get 2345%.
Pullback I think if you wait too easy convenient for yesterday to be the peak of the of the bull market -- before major correction.
I think the worst case the bulls as we have a pullback we have another run towards new highs that may look kind of crummy.
The advance decline line made new high junk bonds are making these media -- the transportation average industrials -- -- good sector leadership.
You don't have -- -- in place for a fifteen plus percent decline you could always had to pull -- corporate long overdue for months and months and months.
I don't think it's the big winners here -- -- -- is great and to match.
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