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All right the markets needed a fistful of xanax and Ben Bernanke was happy to oblige.
From -- to -- yesterday bringing investors out of their panic rooms don't think -- way.
The Dow and the S&P 500 -- all time high yesterday the Fed's easy money policies -- ending any time soon.
But its investors to rest on their laurels Scott Martin from united.
Joins us with more why say that is it not time for investors to take -- xanax -- hacks and just watch your portfolio grow.
We're well listen that's something you probably could've -- Melissa for the last six months a few years I mean it's been great right and.
And that's the funny thing everything's been great both in the bond and stock markets and we know overtime that just doesn't happen at that bonds and stocks was -- -- to move in different directions bond prices go down.
Yields go up and stock prices go up and -- the vice -- typically happens still on the other side so to me this is -- -- this separation now where we're starting to see some weakness in bonds because the Fed is starting to step away and then all of a sudden they're back and then they'd step away again they're kind of pulling their -- Rihanna and fact that yeah -- is coming that they -- later and saying well I didn't -- to do that I'm back I'm here I'm showing up for my concerts in the foods cold like you said because to me.
Melissa -- the bond market is telling you something even the biggest rally we've had off -- -- for these recent lows.
Bond rates have barely -- I think that tells you that bond rates are still set to go higher here the next few months Yang and his comment was that he thinks we -- a lot of volatility of the market which you know what he said before it and we -- some -- -- that would Greeks we got that out of the way.
You buy that explanation.
I think he showed some of the volatility out there that was there a couple weeks -- don't -- the bond market is absolutely gigantic several trillion dollars so of course.
There's more volatility to come out there Melissa.
-- yes we -- some out but just why.
Rates are anywhere near -- -- just say 36 months ago when the Fed was still talking about not stopping this taper.
Now what's happened is stocks have gone up higher and I think that's good because I think that's ultimately what Ben Bernanke wants but.
I'm telling a lot of our investors and lets it go all about bonds to me and gold are telling you something there's a lot of volatility there that means they're not comfortable on their own skin -- telling people to deal because we you know we don't wanna -- believed people scared without the knowledge of what you and keep watching the stock market go up -- -- and not the same time.
You don't want to get burned on the bottom -- that would -- telling people.
Well I think if you're at home playing in your 41 K I still think you stay the course with a largely stock allocated portfolio.
And the reason I say it is that he's some like such an aggressive move and but the reality is I think the risk -- bonds out there Melissa I mean you can get dividend paying stocks that'll pay you more than treasury bonds you'll get.
Even high yield bonds they'll pay you more than treasury bonds.
With half of the volatility you know it's like having a double cheeseburger that has half the calories Obama have a single cheeseburger it's like the greatest thing on earth -- -- -- the bond market as.
The bond markets entering let's say a Lindsey Lohan type environment you know one good week one bad week -- good and -- -- that's that's something you can't trust -- people have to be aware of that.
And that's true but there aren't just your choices -- -- -- -- there other things you can do you mean they're people that that wanna sit in cash right now because they think the bond market is scary you don't want to get greedy and stocks we've seen quite Iran and you know the next time Ben Bernanke decides it sounds.
Not timing who never sound hawkish but at least -- doesn't sound like a complete job.
We -- -- the market react again I mean maybe.
What do you -- -- do I mean you wanna get into real estate right now before it's almost the perfect time to transact -- rates -- prices going up.
It seems like you want to get in -- and and bison and well.
Real -- it's gonna be tough because as we know that reacts to higher interest rates for -- I think we can agree are definitely in the future whether it's 612 or eighteen months ahead.
It and real -- eating ever held up the price increase and housing.
MIA now here's the thing I tend to be somewhat constructive -- housing here Melissa but as we know the market reacts very swiftly to say these small change -- raids.
It just look at the -- over the last say thirty days have been smoked so that the top one.
But I'll tell you rising rates -- eventually going to be good for those cash -- you mention because people might actually hello -- something on money markets which we -- our zero right now.
-- that's a great point.
Scott Martin always great -- thank you.
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