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Everybody was wondering whether today.
-- would follow what happened on Wednesday and Thursday not so we're in the plus side not staggeringly soul but solidly David Steinberg is managing partner -- -- capital.
He says the equities market is still the only place to be he has three ways to play it and Phillips were able.
Joins us from the pits -- -- CN may fill up wanna start we knew what it looks like no one knows exactly how to play this market right now we saw the other the downsides.
Go thirty times trade between each other is swinging -- both sides of trades what do you think it's gonna happen next week.
Well I think does I think this summer sell off -- -- I think we're gonna continue to marched down I mean.
If you look at the market today back -- -- action that's a lot of guys that are covering short positions.
I think if you look at the crude oil market that confirms that downtrend now with the market the data recovered all today.
-- about a percent and a half.
You know I -- Bernanke -- -- right.
We've -- looking like they're gonna pair off next few weeks come September he got China really slowing down Chinese imports for oil was down 6% -- the month of may I think oil prices continue to slide break down.
I think -- also -- in the whole market just goes with it.
OK well -- let's move to treasuries because our investors that viewers are very much invested in treasuries.
Look at this ten year yield 2.5.
3% just an hour ago we were 2.5 one so.
Continuing hike to pretty much the highs of the session today what happens next week.
As we get closer and closer to fourth of July penetrating.
While we still think that Dolan -- interest rates are still gonna continue to move -- I mean traders are really anticipating that the fact.
-- this -- often at 2004 -- you're almost seemed like this rebalancing going across the board.
For several months out in the -- -- especially the eurodollar futures sewing if you look at gold.
Gold's continuing to slide hard still and that's just you don't I'm not interest.
Bearing assets self Treasury's most likely the futures prices continue to go lower you're probably -- yields continue to gain.
All right David -- let's continue -- treasuries for secular talk about Bill Gross -- right before.
Bernanke began his press -- on Wednesday Bill Gross came -- said he's buying treasuries.
Now a lot of people have accused him I don't know whether it's true of -- in his book and everything but what do you make of that place some people are buying treasuries including Bill Gross would you.
I -- -- not like it's it's it's administrator return on treasuries.
All right if there's been a thirty year rally.
You had the influence of the Federal Reserve you know pushing these prices higher and having a lot of investors comparable known -- And that's coming to -- and and when these investors all the side to rush to the door.
You get what you've had the last couple days -- confusion.
-- -- trading and affecting multiple asset classes.
And at some point does treasury market's going to have to find a proper.
How water level depending on you know when the Federal Reserve slowly over time if it ever you know comes off the throttle.
With quantitative easing and so forth -- -- I -- -- completely avoid fixed income.
A look at -- fixed income so that I assume that you still see equities as stocks is the real opportunity.
And that you would still be involved in is that correct and if so which which sectors which areas do really well.
Absolutely any corporate balance sheets across the board are the best they've been in fifty years.
Valuations are not aware of -- for the general market maybe it's fourteen times forward earnings which is not expensive especially against a backdrop of low interest rates with him.
The stock market the best values metric glee.
Hard -- cyclicals -- technology your old technology companies.
Discretionary kind of companies.
And there's still a safety trade that is kind of elevated the valuations.
Of utilities and it's -- reach -- interest rate sensitive.
So at some point you know if you've got the right patience level and you can hang in there on the says cyclicals and deeper undervalued sectors your target -- make superior rates of return especially if you believe there's going to be a recovery in the United States or Europe to any degree.
And eventually China you know gets there.
-- there's -- straightened out so I really like areas like old technology and food packer micron -- like the deep cyclical areas that are in the metals areas like Freeport are Rio Tinto all.
Are here for the hottest things that are you know commodity based have a lot of sick locality they're undervalued -- on -- short term basis relative themselves.
And on a forty year basis relative to where the staples companies in defense of companies are trading.
-- felt it I'm here at dinner time robbery in the background like I could've -- -- -- -- -- -- traders -- -- all -- girl -- there and let us.
Seriously what is happening -- commodities because some people are saying that it's as awful as they were treated this week.
Despite the fact that there may be lessened inflation pressure because the Fed eventually will be pulling back from bond -- That's still something like cold for example has hit rock bottom and it's time to make a comeback what do you think.
Yeah I mean when you -- a look at it commodities you've got to really break down the fundamentals album the supply the demand I mean you mentioned Cole.
That's -- player that we're watching you know other markets got a look we're in Chicago he got to look at some of the grain markets looked at porn look at soybeans.
He's our products at the farmers are unable to put in the ground right now.
The well past those states that -- crops already been planted a lot of that is or whether I mean it was a thunderstorm and -- walking over here today.
So these farmers are going to be able to get back out there that the -- the planting it reduces yields reduces production and you start looking at four out of the year.
Corn prices are sparking a start movement off.
And the product is gonna get real tight by the -- -- you are you suggesting.
Right here on Fox Business that mother nature is more powerful then.
Hot at law in here you gotta look at if you look people have to eat no matter why and whether Bernanke's.
-- -- So what were they yelling it I'm sorry I want -- now.
-- -- -- remember you little Robert what is this well here at all and there can't sag.
I I can't say what they are yelling -- it was a -- aggressive on Syria.
It was a barnyard epithets yeah same as Chicago welcome and well go Blackhawks and other -- and black -- that they should be.
Thank you -- -- thank you David great to see you it's good -- you gotta have some fun.
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