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Let's get the action going we have -- leader -- financial strategist he says stocks are still be best game in town.
And Larry show over in the pits of the CME Larry.
To the Blackhawks every CME trader has been -- -- business today wants to just say that right off the top so congratulations they win the Stanley Cup and other markets win today at.
At least for the bulls.
Yeah that's right never call the good old days when.
Europe was the lightning rod for the market -- absorbing all of our energy and focus.
Right now we have as multi polar narrative going on where it's much more than Europe -- once you didn't you worried about Europe it's about shine -- about.
-- and -- emerging market capital flow we have bottom of rising yields people are worried and I used to all these moving parts in a market so.
It's really nice is seen as knee jerk reaction that we saw today a little lower -- asset class volatility across the board but we are faced with a lot of -- -- is that we have not seen how long -- well Larry one of those moving pieces of course our interest rates at ten year bond yield up again that.
The bond markets are getting.
Well the long term effects that might not be bad.
It might not be that good if you don't mind the stock market rallied more and stunning profits -- you know against the profits was.
Low -- it -- compensation.
And lower interest rates we noted that that just killed the yield curve so making money very cheap for them.
If rates continue to go higher that's going to be very difficult for profits -- replicate themselves as they have for the past three airport earnings -- It's sad that we've got rob Weiner here party -- and he's made some great stock picks in the past on this network and he's still feels Larry and -- let's -- -- -- But stocks are still the best thing going right now.
That's an obvious comment at least from your perspective because you're -- -- but you're also what totally out of gold and you feel that you should reduce exposure to emerging markets.
What within stocks keeps -- so excited at this point well first thought there entry points.
A lot of stocks that we think are attractive but beyond that.
He -- this congress doing better we know people are doing better people are feeling better.
I think that if you look at earnings earnings are solid they're not great but they're solid but what do what are you gonna do -- -- bonds I don't think so.
In fact we think bonds -- the bigger bubble -- -- say in this for what nine months.
That -- -- bubble bonds -- a problem because the investor invest in bonds are typically -- bond funds.
They're gonna take losses I -- there's going to be real real blood on the streets -- own individual bonds and we're in the triple B space ourselves.
You were making for four and a half percent.
That's a safe place but when bond investors get their statements the end of this month there -- going to be shocked.
And these -- this skittish investors these aren't equity investors -- bond investors.
So I think that alone is gonna let people say -- their to their broker what do might do and I thought I was safe and bonds.
And the brokers gonna have to say it well you're in bond funds you're not bonds.
Well let's not let's talk about equities because there are some entry points for certain equities here -- -- -- if you're looking -- deal.
American tower seems to offer what first of all they they give a dividend of about 4% right now.
But this is a stock that has not travel up to stratospheric heights it's come down recently you think it's an entry point why.
Well I think at this price say it became a regents recently and -- got sold off terribly and I think this went down with a all the rest of the reits and it shouldn't.
Let's -- by the way let's let's explain what they do they -- the cell towers and they also rent them out right.
Right they own about 55000 cell towers in sixty different countries they have an emerging markets.
Expansion plan which we like very much but more importantly they just became -- read.
Got whacked because who became -- we think.
But they have tremendous cash flow they have a 13%.
Revenue growth for the since 2007.
So they're very solid they have a relatively conservative balance sheet.
But more importantly they're good in the three G to four G market.
They have contracts that that guarantee them a three and a half percent gain.
Each year increase in and -- from Verizon AT&T Vodafone all these big companies there -- growth story and they just got sold off so this is a good time to get and I think.
-- American tower and and as you continue to -- like -- watch the border for truffles.
You like Starbucks the last time you were here do you still feel that Starbucks which I think since you mentioned did back in March on the 25.
Up about 11%.
Wears the opportunity here they just announce a price hikes once again.
Yeah it was a 1% price hike on about a third of their products.
Starbucks is got a plan -- open 3000 more stores by 2015.
There and emerging markets play they bought a -- company bakery that now -- -- K cup business.
Great management it's not a cheap stocks trading about -- 24 times.
But it's got over 20% expected -- return -- rate of growth.
I think it's going to be fine but it's an emerging market story not just.
A good executing management story.
At right at pipelines were in the news today the president.
Kind of punting once again on the whole issue of the pipeline the Keystone Pipeline but there is one -- -- company candor Morgan which you like right now why.
We've on the for a long long time and that's been spectacular.
This year again we think what happened was they had a pipeline plan to go to California -- When them from the midwest and nobody want -- to buy into it think it got sold off there.
That's -- this company is executing their.
Their cash flows up 200 million to a billion over a billion dollars a year we think they're doing by the -- they also have invested in coal and some people say oh boy you don't wanna do that.
They're the biggest pipeline company in the in the country and they have 70000 miles they're they're executing six point 8% dividend.
And currently tax free and they're in their dividends have increased every single year so it's a growing dividends story it's a tax advantage -- -- story and its oil oil and gas spot going away.
Larry as we finish up at least for now from the CME the big question becomes do we continue for example to just see that the credit crunch that we saw coming out of -- Is it really just a one day story and the market really came back today.
No I don't think it's a one day story John we need to look beyond China does realize that like since like 2002000.
-- and there's been amazing correlation between China and the rest of the emerging market so with that said.
I've capital flight out emerging markets -- specially.
What the risk of rates going higher here in the United States.
That could be as significant problem for us -- China does have a lot of levers that they can pull a lot of things that they can do.
However it's not a one day deal and it's not just China we need to look at all the bricks nations right now.
Good advice rob -- and Larry show her Larry again will see -- a few minutes from the S&P futures pit at the S&P futures close.
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