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-- the coming months.
The rumors and gossip -- behind the scenes stories you've got it all on money and the Dow plunging more than 20225.
To be exact -- about one and a half percent.
Everybody's talking about with the real reason is for the drop.
Its -- journal com is Gregory separate.
Hi Gregory thank you for joining -- -- I -- -- -- the Wall Street Journal itself for the selloff because you guys published an article last week pointing out that the S&P 500 is overvalued that the forward PE which is in metrics determined valuation is it over a four year high we think.
Well yes we do notes things are expensive if you talk to the average trader on Wall Street hedge fund guy on the they are invested in the market but they're nervous -- in that -- the last I'd say six months to a year in other words they don't wanna be bonds they -- being cast they feel pressure to be invested in the market but only believe in the market don't believe the economy I frankly -- little more a bullish on the economy than a lot of of trader type so.
Any excuse to sell they're running for the -- I think that was that article the excuse to sell because the conditions you just haven't been around for a long time in this discussion of the Federal Reserve and when it we'll start pulling back on the monetary stimulus.
We've -- -- parts into every little last word we hear from the Fed chief and is orchestrated.
Discussion you know one fed -- -- left and others come and help put you mean it's.
Yes that is true although we are starting to get a little better data and only get better -- on Wall Street people get nervous as a means from a stimulus -- crazy that good news is.
Bad news by way of bullish stock market investors true although the last two years we've rallies tremendously even not economy hasn't been doing that well also works and in both ways as well right so it's evening evening period.
Its self out so what's interesting though also to meet that -- and I and I think this boosted the Fed's.
Which was the reason for the sell -- hit it not only -- stocks down bonds were down rumors it was very and he ill yes it was a pop up and you know you had that great initial jobless claims report.
Best levels since before the curtain and I think it was this and -- a recession law -- had been a while -- is put it that way.
And so nobody is -- you know reading into the safety of bonds but nobody really wants to -- in stocks anyway because the wealth effect might be -- here because of the Federal Reserve pick it up.
If you don't wanna be fighting a -- so we've been enjoying the last few years because the Fed has been helping us Sutherland has been -- our backs on there is concern that -- won't continue.
Again I think there's a transition period here where you get nervous about the candidates for looking at economy and you realize that.
On the economy isn't doing badly at all next you're -- for.
Just play that because.
-- with a little inflation there was a bit of concern that.
We almost had two little inflation.
For growth right there's no wage growth at all.
I find that Consumer Price Index reports -- just a little bit and maybe that was why we saw that spiking golden fields as well we think.
Yeah I mean inflation frankly has been much of the concern last two years but I I I believe that the economy nature's gonna grow at at least 3%.
And that's including government but he do -- take up the governments and we don't care as much about the government they were actually giving a three and a half percent -- many more growth next year.
I'm my -- troubling is that is -- -- that energy.
-- We get more production of oil gas -- last few months than we'd expected and I was the last few years.
Have the remained a tremendous an improvement thinking about housing with these higher rates and mortgage rates of thirty years up to about four point 4% now for -- -- point out.
A good chunk of people are buying homes with -- -- to affect those people.
And there's still relatively low interest rates us I think a lot of momentum action -- -- consultants at some point came a transition towards focusing on a strong economy.
That's the jobless claims better than expected do you think that portends a good August report to people -- closer to 7% on the unemployment or if we do -- -- dispute signal even more people are ditching the labor force are now more optimistic about the labor force and a lot and employment try to predict these things are very volatile.
Month month to month but on pretty upbeat on that stuff.
Gregory Zuckerman thank you so much there and talk -- -- --
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