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Ultimately it is an appalling that this is a much easier day today than it was two years ago when of course the markets fell precipitously after the US -- credit downgrade got.
Dropped from -- the double -- plus AAA is outstanding according to S&P double A plus is excellent.
This -- -- mean is that really a difference between dobbs getting an excellent but there's a difference two years later on what might happen.
We -- joined now by Todd Harrison founder of minions tell it's great to see taught -- sealed as well it's been an interesting two years two years ago would you have thought.
But the Dow NASDAQ S&P would jump double digit percentages right after the credit worthiness was questioned by us and -- All I'm not sure how much credit the rating agencies still have they -- going into the financial crisis I don't think any of them sought.
So whatever credibility they had I think is long gone.
So I'm not that surprised but I think what's an interesting at least to me is.
The difference between a stock market rally in an economic recovery.
So we're seeing the stocks at all time highs in many cases but the economy.
Is is not doing so well sub 2% GDP growth.
I think that investors now once upon a time there was the Greenspan but now the looking at the Bernanke call I think -- a little -- dangerous.
Describe the Bernanke call as you've seen yet what would you do to protect yourself in advance of what you believe.
Might happen and is that a correction I hate using the CR a SH -- but.
What do you think one of the other -- been wrong or early as the case may be I I've I've been a little bit too cautious this summer.
But I think that you know where when you see consumer confidence at levels last seen in August of 2007 at the -- you know you -- have to pay attention to that you have a lot of folks out there.
Who were -- talking about the great rotation back at the stocks meanwhile.
I think John Q public is seen this movie before where you -- savors being burned at the bottom investors getting burned at the top.
I think that of financial fatigue is starting to work than a little bit so.
If we can get through August September and October without a meaningful come up since then I think you'll see.
It's exciting to the -- that here.
I'm not sure we get through there without seeing some sort of that you mentioned.
Anxiety that is psychology market psychology is extraordinarily important because the herd moves dramatically -- quickly what other metrics -- look at.
To give you a sign of what the market's going to.
Well laid out there's a lot of moving parts and psychology but I like to look at the world through -- -- -- excellence.
Much like I talked about with you back in in 2006 in December 2007.
That the markets are all time highs but nobody really feels as if word all time highs and I think that that.
Chasm between perception and reality is is is pretty it's pretty important and in a period bears noting whether it's.
A-Rod or Stevie cone or -- -- for all of these things that we're seeing in society where that this rejection of wealth.
-- I think that has the potential to manifest through financial assets fundamentals and technical analysis account for what a lot.
'cause that's the reality isn't it that's that's -- lets him remove the emotion and look at the number of course and I.
I think that's a great point there's four metrics as fundamentals as technicals -- structural.
There's psychology but this is not our father stock market is a very very heavy hand of the government 70% of the volume down here is is by each FT so the DNA of the market has changed I think investors need to pay attention that the markets have changed but if I had to look at the metric to say.
-- I think is most important in terms of ranking them I would say psychology is far and away number one.
I think that.
Structure was number two whereas -- used to be rates -- credit now which tapering expectations and things of that nature.
I'm I was -- fundamentals as number three -- restore point during season.
And technicals I would say is number four as long as you stay above -- 6075 the bears should feel okay.
I just want to mention one -- -- -- needs high frequency trading after the massive sort of algorithmic.
Electronic -- attempt to -- the markets and and boy you don't on the top of the market or the bottom if you're a little guy a little -- and perhaps just an individual investor but.
Speaking of which -- -- disinterested in what stocks our experts look at to give us an indication that.
Of what the markets may do in the future you've got three and they're all on the same sector social media.
Well I'm looking at the social media stocks my -- the price action and if price action and yell for the price action -- Linkedin.
Which is they're both are hitting extraordinary -- even FaceBook.
I don't pay attention I'm not involved in any of those names but in terms of -- -- predictive prowess I always think the financials are really that the sector that encapsulates our finance based economy.
We've seen outperformance by.
More of the regional banks -- the money center banks but I'm watching a money center banks because as -- the big -- So goes the -- so to speak in their leading indicator for the market.
It is wonderful to see you -- Harrison and as as we finish up I just wanted to ask you you know two years ago today what were you doing as a traitor because.
But just don't -- Fox Business lock stock -- not a party regulars and he would sit with all of this computer screens much like the once you see behind us right now but.
What kind of traits -- that.
Well -- you know the same temperature it's -- making now is is headed to court again and get out and be humble about it you stay humble with a -- we'll do it for you.
I've talked to a lot of people for a long time and this is one of the -- markets that they've seen in this for the -- -- markets and I've seen there's no shame in admitting it's hard it is only -- -- pretending it's not.
So if you have capital again and you're not short trading between -- preserve it.
Until you see the eyes of the whites of their eyes.
To see if Todd Harris and founder of many ability haven't seen the site check it out great to see once again.
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