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Let's get right to today's action we have Chris wrestler museum growth fund -- manager whose last stock -- Is up more than 50% since he told you to Bible tell you what that wasn't -- ball in the he is in the pits of this CMA and tell about let me just start -- the general news about what haven't -- Middle East the fact that.
The US might get more actively engaged in the situations here.
That really didn't affect the market was until the last minutes of the day that it really begin to show momentum downward.
Yeah I think north secretary of state Kerry made a little more you know aggressive had a little more -- -- words about holding the Syrian government accountable I think that maybe.
Hit the reality and then you know the course the Russians want to due process from the UN to be done and so forth but nevertheless it's it's a little unsettling because now you've.
Added a little geopolitical big geopolitical factor actually into the equation here.
You know the other thing that surprisingly did not affect the market is a lot of people thought it would Tim is the durable goods number.
Now was focused on airplanes building of airplanes those numbers coming down quite a bit.
But are you surprised.
You could react worst of that.
No I actually think the market was.
-- pretty much selected because of the fact that.
Perhaps it means the Fed's gonna continue.
You know I guess this paper -- that argument so that's probably why I think you get that reaction may be counter intuitive if you will but.
I think that's what the reason must.
But Chris -- there's only so far the Fed can go in trying to turn the economy around -- with these -- -- -- With these low interest rates and of course the interest rates haven't taken up all -- that they were down a tick today.
But the stock prices the key of of whether they can stay ahead.
Of what their earnings are a lot of people thought that think that stock prices have now jumped ahead of earnings what do you think.
But we've certainly seen multiples expand over the last few months.
Take green will have some small impact we think going in the September.
The Washington will be coming back to work so we think that'll bring in some volatility.
But we like to -- to stick with our best picks out -- good management teams -- good growth stories that are out there but what if earnings don't catch up.
To where the stock price it.
Well again I think if you with a great management team they can manage through those sought.
Lulls and -- longer term investors still missing a quarter.
We see is a great opportunity behind Tim this is kind of like a no man's land in the market right now you know you're up you're down but basically his stay flat we've been there.
For a while now how much longer.
Well that's called a grind.
And I think that's -- you're doing -- grinding higher right now because conditions are such.
Where there's still a lot of money coming off sidelines so forth out of bonds obviously in the money markets coming into stocks he got cash flows that are still there.
And you know the economic backdrop.
Isn't bad but again I think that right now it's still the game in town I don't say that I trust the market but nevertheless I think the same thing holds true this held true.
The entire year right now so I think we're continuing to grind on those fundamental.
Let me just challenge on one thing though you say the economic backdrop looks good looks -- -- is is probably better way to put it but doesn't really give -- you talked a lot of small businesses they say they are being nickel and -- to death.
By obviously more taxes by regulatory.
Costs which -- a tremendous burden is well.
And by lack of real enthusiasm by the consumer so does the general economy.
Look that good do you tip.
No -- I'm not saying that also when you look at real wages and really comes how they've been you know is another disappointing feature of the market.
But I think since two guys -- -- following.
Second here I'm sorry to ask a question break in the middle of -- -- but we have some breaking news.
Bill Blackman who of course -- been famous for some very famous.
Short sells and -- and long as well has decided to sell his entire interest in JC Penney.
And you could see the market reacting after hours JC Penney closed.
Thirteen 35 it is now trading at about twelve.
92 Tim I've started change it mid sentence there but do you think this is gonna affect the stock tomorrow.
I don't think it's a big surprise actually given the fact of you know the events that happened over the past couple weeks.
Let's and I imagine perhaps you get a little bump down but I mean other than that I don't know that that will be surprising.
-- by the way he -- we kind of knew we was gonna do we just didn't always gonna.
Dump the load it once we thought he was gonna do it in stages.
Chris this brings us to the idea of what what -- -- -- -- course JC Penney has a lot of issues.
That are unique to that company because of its problems but retailers.
I'm looking very shaky particularly when you're looking at apparel retailers right.
Yeah I think we went -- -- -- earnings last week where we're seeing consumers.
I'm not spending money in the apparel the probably spending and warned companies like CarMax so they're buying bigger ticket items.
And -- you had a lot of teenage jobs weren't created this summer so going back to school was a little bit weaker.
But on the other hand health care -- still bullish on health care you don't think go but if they basically even if Obama -- it's not gonna happen.
But even if obamacare is repealed.
It's not gonna happen this year anyway with a democratic president.
Even if that happens more Americans are going to be receiving.
Some kind of health care at least basic health care right.
Look one of our favorite names and we've been there for many years is Express Scripts.
Drug delivery to the patients to the aging population.
It's a very long secular theme that we're very -- -- why Express Scripts holding company particular.
Express Scripts is just a very well run company based in the mid west.
They've got a mail order they've got distribution through pharmacies.
And it's just the top of the line -- drug distributor and technology what do you think of that sector in general.
Well we're gonna see something out of apple over the next couple weeks we'll see what kind of products are bringing out what do you think it's going to be.
Well we think that it's clear the B five -- be a cheaper phone I think the big wild -- going to be any -- cheaters Huckabee and new product entirely.
Now I think that'll be in the iPhone six but what big name we we want to look for what happened in China whether they have a China Mobile phone okay and because you're looking at apple you get a stock that relates very closely to apple TTM technologies they do manufacturing of the printed circuit boards going into a lot of the phones.
And we're seeing hiring -- some of their facilities so that's a good indication that something's coming okay also Euro the European economies seem to be turning around the Wall Street -- piece on how to.
How to start looking for stocks this weekend Tim are you looking at European stocks at all.
-- -- we've been looking how they've been responding I guess given the better economic data but you know let's not forget there's big German election coming up so again.
Perhaps this is a real surprising coming into the German elections.
But the public the concern that everyone has is given what's going on right now.
Maybe did the policy makers are gonna relax a little bit maybe stop the reforms that really need to be done structurally for the long term now.
OK and once again had never got to re emphasize JC Penney -- JC -- back and aborted begins we could see what it's to an after hours -- as you can see you have confirmed it.
It has been confirmed now that the entire state is -- -- just single.
Stakeholder in JC Penney has now sold his entire state and surprisingly.
The stock is down after -- but surprisingly not down.
As much as it originally was it is coming back a little bit so some people are buying after hours despite this big sell off.
In JC -- thanks to Chris wrestler and Tim Paula we're going to be checking in with you would a couple of minutes -- BS and thank you very much.
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