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Turning to Wall Street stocks shrugging off the outlook upgrade from Standard and -- finishing -- -- in -- -- joining us with his outlook for stocks in this economy.
John Matthews he's the CEO Cantor Fitzgerald and great to have you thanks are you.
-- I'm very well and I know you're in.
Challenging times in this market.
Look let's get to the upgrade how significant or insignificant is.
I think it's virtually insignificant if you look at what's going on in the marketplace.
There really was not an issue done better upgrade you know we're we're in interest in harm's I think people are more concerned about.
Where the markets headed -- duration is where volatility is and and certainly I think for me investor standpoint it's a little bit treacherous and treacherous.
Last week everywhere I turn -- was talking about -- market correction.
-- we can job but then we had a 200 point pop up in the Dow.
What what are we got here in the equities market for yeah I think -- premarket is actually pretty good footing so we look at it from the relative value basis people have to put their money somewhere.
They're always looking at this point come to buy dips and equities and sell.
Rallies and fixed income and I think you're starting to that play out more and more every day.
So certainly I think play well to a basis the equity market is still in pretty good -- I thought that the bond market might face some challenges when Bill Gross of Pimco basically said stocks are dead.
I thought that might be some kind of sign has it turned out to be.
The fixed income market -- and challenging times because the -- -- back up to 220 which doesn't sound like a high yield in general.
But it's a fifty basis -- back up.
And at low interest universe which have large duration of the marketplace so everyone is trying to forgot how to hedge their per -- is certainly the mortgage market is going through a little bit of issue because.
I was afraid that the QE programs are going to end plus you have a lot of duration of the marketplace -- people are selling treasures are selling mortgages.
Actually hedged that position correctly which means that everything widens on a relative basis there we -- there in the stimulus Federal Reserve Bank president now today.
-- Bullard saying that you know we'll bring down.
These -- bond purchases by ten to twenty billion a month I mean that's.
That's that's enough to get your attention to -- -- actually it's a significant number and if you look at.
The you look at the street in general they were great stores of assets it in years past because they have enough capital to actually did.
But as you have bigger and bigger marketplace is now there is less money that's actually acting as a as an intermediary.
And that is causing volatility to rise and fall based on what's going on.
-- towards purchasing a con man who's kind of insurance CEO.
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