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Some major average this isn't just heard extending gains for a third straight -- this afternoon is.
Many regional fed presidents and governors saying this week it shouldn't Bernanke's comments we're not necessarily a green light for tapering.
I thought that continued easing what's fueling this week's jump on the markets but that's dot Delphi up -- -- as president and chief investment officer.
-- a real honor having China.
Thank you for inviting me lottery so what's -- take on this course the Fed officials lately.
Attempting a court made -- cooling of market volatility is -- working.
While they actually increased volatility last week we had a huge sell off -- look at the peek in the S&P 500 in May down to the -- the market fell almost six and a half percent.
So they didn't accomplish what they sat out the -- they gave mixed signals that was the problem there was an ambiguous.
-- should stick to the area from original forecast that if unemployment gets down to six and a half percent.
That's where they're gonna stop the QE3.
-- in the bottom line is that.
Scott do you think though that the course -- fed officials we've heard just today and yesterday in damage control.
Set forth by Ben Bernanke -- literally exactly what you just said the ambiguity that -- put out -- last week with the Fed meeting.
Exactly it was basically to wish while Asian markets because they saw the damage that was done you know the ten year bond backed up from 116 over to -- the and the stock markets sold off on hiring but I don't think they can tape -- so quickly you know if you really look at the employment figures we've only had a one point six million jobs year -- year in the last twelve months and was still about four million jobs from the peak in 2008.
So it's not a born -- economy and you also saw the GDP right Beijing yesterday.
I mean -- from -- fall off.
Tell Leo one point eight point 61 -- one point 8% I mean it's it's -- above stall speed.
The other problem is that the consumer if you take nominal GDP at 3%.
Personally comes only growing at two point 75%.
So real wages are actually negative an issue well almost 7% of the economy is driven by consumption right right consumers don't have money they are in trouble and it.
-- -- -- -- -- -- -- slower as well on the economic data out this morning so what does this all mean Scott for your market outlook.
Markets obviously -- -- an impressive gains already so far this year but now now that we have all this economic -- dated it's been revised lower we've got the next jobs report that'll be telling of course.
What does it mean we've had three days of gains now the bad news is being interpreted -- good news because it expects the Fed will continue this easing.
But if you look at.
Corporate earnings BO BS and 13% growth.
I'm using one -- forward to 7%.
It puts the market multiple of about fifteen point four times historic meeting is in the post war -- sixteen times.
So there's still -- on the -- side.
On the bottom line is that large cap stocks -- systematically cheap.
The problem is the small and mid -- is defined by the Russell 4500.
Selling -- nineteen times expected earnings that doesn't mean that Iran individual stocks but as a whole -- well picked over.
One Indian problem if you like if Lam Research ticker LR CX 23 and a half percent gain us apart it's -- why do you like the stock and why Scott do you think it has room to run.
The earnings -- -- to accelerate for the first time you're gonna see the inflection point in the quarter that just ends on June 30.
Next year they can do -- approximately.
Three dollars and 75 cents this but there are ten dollars plus a share in cash and get back out the cash.
And you even -- just for the stock based pompous selling -- about a twelve PE.
If you just do what on a pure multiple basis is a ten and a half mile football.
They haven't dominant position and wait for action -- chemical and physical vapor deposition because of the acquisition and no valid shot and as we move from 28 -- to -- There in the sweet spot in terms of ticket semiconductor equipment.
All right that's Lam Research for -- you can see up 42 cents in the action today Scott -- wonderful to have you thanks for your time --
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