Also in this playlist...
This transcript is automatically generated
Let's have more about today's rally and where stocks are headed.
We're joined by Debra -- chief market strategist at -- Xena doesn't ever want support what are on this rally but it is what it is and it's going up and on the flip side you got your bond bears because everyone so there's going to be great bond rotation that's not happening either so maybe it's just that the traders are confused so they have no choice but to pour water on it.
Yeah -- a tale -- two markets you have the equity euphoria.
Provide Central Bank stimulus yet great numbers today for the consumer.
Consumer confidence -- case Shiller home set.
But then on the other side.
Bond yields I know there are 510 years ought to two point one but that's pretty low couldn't -- -- -- expectations at the beginning of the year.
Bond yields -- kind of given any indication that we have some problems especially in Europe look at Europe Andy I think you need to be fully allocated.
But not over allocated to equity -- got a locking in being normal.
In bonds and stocks so dot com we keep this pace up.
Through the end of the yeah I mean seriously can we do that.
Well not quite this -- were up 18% when not even halfway through I think that would be.
-- historic rise I think you can expect some volatility.
-- if you look at the average investor they are still under allocated equities and I think there's a lot of opportunity as this market continues to go up.
There's pressure there's going to be capitulation I heard you talk about.
-- talk capitulation on the outside.
But I think with the volatility salt low right now definitely we could go back up to twenty very quickly.
That's correct that you should out some risk control assets in bonds very important but you get up play this market both ways -- tale of two markets and.
The bond angles really into -- is again we got a lot of people saying it's over and get out watch inflation inflation is nowhere to be found.
Interest rate risk -- stand then what should -- be doing with my bond portfolio.
The number one reason no combines this for volatility control -- safe asset secondary or maybe even third as income.
You shouldn't be worried about inflation.
Use bonds for -- safety so you combine more equities.
That's great point.
-- like you know what I wanna get back to the economy discipline as you mentioned that we've had the consumer confidence hitting hi read and seen among them five years the home prices continue to gain.
If the Fed stops to tape could that be a buying opportunity.
Well I'll buy that the that's that is going to tapered off because they're number one.
If you looked at CPI last week it was one point 1% and their goal is 2%.
In some respects that that is failing.
They're not even achieving their inflation target.
We're spending a trillion dollars in monetary stimulus so -- inflation number I don't believe that the Fed is gonna taper off through the -- yet.
Based on that number.
Let's talk quickly about equities then you say mid caps not large cap wiretaps -- had -- -- I presume that's who you gonna say what kind of -- cap stocks you buying.
I like -- make up to think beyond make up to the sweet spot of the equity market because several Lorena ball.
Is it too late to get into this rally.
Well maybe for large caps but not for mid cap and down the diversification curve.
And within mid -- consumer discretionary why because the Fed is focused on helping the consumer.
Look at housing.
Don't know -- -- -- energy sector to I mean you know you mentioned in your notes that.
You know that this country is going to be fully energy independent.
A lot quicker than people have predicted how -- an investor should I've been playing that sector.
Well broadly because -- a couple thing that's going on with the energy want our trade deficit that we've had since 1975.
I believe goes to trade surplus within two years and so our front page article in the Wall Street Journal.
OPEC is in shambles right now because they say we're not worried -- ball.
Energy independence in the United States they are worried it really lowers our risk globally.
But look at that users more than the producers.
The uses art manufacturing.
I think this is we have an 80% cost advantage in the natural gas prices a source of electricity.
So -- you're manufacturer globally you want to move the United States to get that cost advantage during the course.
It could take it step on a Tuesday morning after holiday your your bread item Busch Jeff thank you Sarah.
Filter by section