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Still planning you can hear the frenetic feeling all around -- there today for more on the markets let's bring in Bernstein global wealth management Seth masters.
And -- Pacific capital's Peter -- And -- let's start with the -- -- -- -- you still have a rather bold prediction doubt 20000.
That would put a chart together from some your numbers just looking at.
Where stocks were value wise in October 07 to 2013.
And you've got stocks -- to fifteen Ford.
You say the debt to equity was 63% of debt way back then now it's only 34% debt to equity.
And -- you point out that the yields on stocks -- you know a few points higher than they were in 07.
But -- -- was down -- 180 points -- was down 200 yesterday are you wrong.
Well I think days like this are good for investors because of the frenetic feeling in the market markets are emotional there about human.
Expression of insecurity often -- That is a great example but the underlying.
Phenomenon we've seen has been -- ironically by fed statement that the economy is on track to do better than expected that the risk of a downside of that is less.
Which means if anything that are forecast that dollar 20000 by the end of the decade I think is even more likely.
Okay and Doug Peters Jeff.
Welcome back it's good to see you again and you of course have been you know.
Hanging -- for quite a few years now what do you think of the markets today and what about -- 20005.
When did you sent by the end of of the director Peter.
Well well well the question is where his -- gonna be if that happens but in the short run.
I think the market is gonna keep on falling in -- the Fed acknowledges that it's got the economy wrong.
Because this whole recovery that the Fed believes it created.
Would -- Q week is evaporating before even dials it back I think that the next thing defends gonna do is add to the -- they're not gonna take a wait that did that that BQE.
What they're gonna put more crack in the pipe.
The market this hasn't figured that out.
Because if the Fed takes -- the stimulus -- it's basing the whole recovery on the housing market the housing market is about to implode again and go for new lows don't -- because of rising mortgage rates friends speculative buyers turning in the cellar.
Okay -- you're bullish forecast for stocks is it because you think the Fed continues easing or is it because you think the economy really is healing.
Very much because the economy is -- what we're seeing is a very modest recovery has lasted already as -- -- most recoveries and of the country to last a while longer because it's been so modest.
There's still a lot of I'm basically capacity right in this system and the fact is.
Real estate is recovering now very late in the cycle which is -- real estate is usually -- beginning.
Of a cycle right and that is one of the things that we think is just.
Helping to begin to turn that tide that can extend his recovery no longer appears shift in mentality yeah there -- -- not -- -- -- -- -- they tell us for years the -- called.
And gold is now down 27 or 30% from its recent -- why -- gold down today why -- -- called a safe haven when stocks are plunging.
Well you know people are making a mistake by selling -- committed doesn't only go -- people are doing the wrong thing people are misinterpreting.
What's happening in the economy just like your -- this.
The US economy isn't recovering it's in worse shape now than it was before the Fed began this crazy experiment you know -- we've managed to do with the record amounts of stimulus.
Is his blow a little -- back into a deflating real estate bubble and we're calling that a recovery.
All of the extra consumer confidence and spending is the result of the phony well that people think -- -- Because the stock and bond markets have been temporarily propped up okay -- are only being threatened to be removed right or not going to be taking away.
And they're already imploded.
-- and the Fed is going to have to do.
You know cry I'll call it can't let the bond market continue to win for implode and mortgage rates rise that that is gonna have to step up -- -- week and what it does that that's -- -- could really take off because then it's like an official admission by the Fed.
That we have -- infinity that there is no end in sight all right we get the phone -- recover that they've created these continuous Q week that can sustain itself.
It's -- -- OK I've got to OK one last thing for Yousef.
You know of course Peter Schiff of Euro Pacific and tell us to buy gold -- told -- 18100 it's now down below thirteen hundred dollars is Peter Jeff.
Wrong or is he just early and -- he is going to be right about all this.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- And they're getting a balance sheets in great shape.
And so our consumers I think there's a lot of legs feel okay market and folks there you have -- dichotomy -- -- thank you very much to be with us on this very frantic day except masters and Peter --
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