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Come out ahead.
Hey let's get right to our panel we've got -- -- Scott Martin market strategist reunited advisors.
Sam Stovall chief equity strategist recipe capital like you and -- Silverman managing partner at king's view capital.
Our guys first I wanna get to to into the session today.
-- -- about it Scott the bounce back what does that tell us and how you feeling right now.
Well Charles you mention I mean with a lot of stocks out there and certainly the indexes I think we were due for a little bit of a bounce because your point's well taken I mean.
The Syrian news is terrible -- deficit they're out there but it hasn't changed the economic fundamentals yet so.
Yes the bounce back was good we didn't get a little bit of a sell -- of the clothes because I'm sure.
Investors don't wanna go insists it tomorrow long necessarily -- so they took some position off I think -- -- other things going on today Charles was.
He's -- oil complex go up you know crude again -- your high.
But golden some of the metals did not follow suit so seeing that weakness in the metals get this straight and oil shows that maybe it is kind of fear trade is coming to an end to -- You know fill us that -- Scott is the work fundamentals the fundamentals of the economy.
What are the fundamentals of the economy right now well I mean we're we're still in it in an economy its -- slowly growing.
Not as fast as we'd like to see but you know it's not -- it's not recessionary right now.
What's good about how does that correlate -- to the market now you know for a politician that's okay you may get a few votes but for stock market that's up 9000 points from below.
As a strong enough to to to justify the rally and to sustain around well I I believe right now -- is it's tough to see the market going.
Up strongly from here.
With with a couple of made big things on the horizon being -- to be serious thing but also when you would know coming into the debt ceiling and in the -- and Hamburg.
So we've had a great year up until now.
And hit it hard for me to think that this these economic growth is gonna support us going very much up from here unless we can resolve some there's other issues.
Political or economic or both.
Well a lot of political right now I Brian -- you know that debt ceiling is going to be very interesting thing coming up -- is soon that is an and the continuing resolution.
Send you guys have crunched the numbers every which way from -- me.
That's it for you guys know every single aspect of the numbers you can trust them all what are they telling.
Well I guess maybe we should turn this into a serial Captain Crunch numbers.
But what the numbers are telling us right now is that may -- today ended up the being the bottom of this.
Pull back -- this most recent weakness because market will we find is that prices tend to lead fundamentals.
And as the first guest said you know the -- thing has been out for quite some time this -- has been mentioning.
Yeah we have worries about the well agents say that -- was that the volume I mean was it the way we bounced back why would you think that today might be an inflection point other than the fact -- bounced.
Well I'm quoting our chief technician mark arbiter and his feeling is that when he looks to retracement levels trend line support levels.
Just reading all of the charts of investor sentiment.
What is basically saying is that because we went down and we touched.
-- that was important thing Tony -- made a technical perspective.
That may be if that was all the we got -- that's probably the end for this pullback and that the market then starts to go back toward the higher level.
Parcells got this -- and him gonna take a little bit what Phil said little bit what Sam said.
Phil's just that knowledge is that listen the economy's got to give -- -- guys saying maybe -- will because let's and the market is always played a role of a harbinger it's always sort of told us.
What's gonna happen in the future does that give you any sort of hope perhaps.
Good fundamentals we'll catch up with the market rally.
I'm so I don't know I mean -- and that the market -- the economy I -- -- economy it's what -- that could get worse I mean we're not really strong and I think.
The consumers certainly is on some thin -- here so that's not.
Really given me a lot of our confidence but as far as the market goes Charles you know if you look around -- other indexes I mean -- you're up look at the emerging markets look at bonds.
There there are getting smoked in back commodities were terrible investments until just the last month so all these other indexes Charles besides like US stocks.
Have been as volatile as like a Miley Cyrus concert you don't like it's been -- that anybody wants to be and I think that's what's gonna drive investment dollars back.
Because they're gonna see the stability of the US stock market.
Updates every one else is working and that the only stability -- there's the US stock market we got to and that.
Guys let's talk about that don't want it doesn't take this -- -- stability a lot of people say I wanna be -- without the crazy gyrations and people think may be a Smart way to go -- dividends -- -- talking about that -- what would you tell -- investors looking at.
Maybe this steady pace of dividend paying stocks and has a portfolio.
Leaning heavily toward that stuff.
I think dividends are great because what's happening now -- companies are sitting on record amounts of cash trillions of dollars of it.
And they're trying to reward shareholders by doing buybacks and -- dividends.
And so again if you look at bonds if you look at the traditional areas where you would find -- -- bonds were high yield corporate were ever even treasuries.
You're not finding it there they are finding a lot of price risk which hurts you so.
You're seeing dividend stocks as a way to get that yelled and frankly that total return.
And don't forget if you're out there looking your borrowing dancing while dividend stocks may look over valuable guess what.
Money chasing them because those other -- instruments are providing good return -- it's gonna make the dividend stocks go up.
You know Sam and -- in this sort of period.
Anxiety let's put it that way -- A lot of people up to watch that show.
Dividends might be the way to go for the Miami maybe they can to sleep a little bit better at night you're absolutely right -- one of the big concerns.
That investors have -- investing in stocks is the volatility.
And -- Scott just said when you look back over time actually the high dividend payers.
Had about a 20% discount in terms of volatility as compared with a market whereas the non payers -- up having -- ten to 20% premium.
So you end up with a greater volatility with the non payers.
Than you do with the dividend payers but let's face -- also it's hard to find a non Payer.
80% of the companies in the S&P 500 now pay a dividend right all those.
Did you know Phil I mean again you know you you know some dividend payers and different and -- couple years ago remember when utilities really that was the safe haven that and they took often.
Maybe got ahead of themselves and you know wasn't necessarily the best -- last year where do you -- find yourself now on this in this world have been paying.
So we'll see -- see the interesting thing is over over the last couple years has been such a chase for yield.
The dividend payers have done really really well and as though the we we've seen this this security -- in the credit markets recently dividend given -- got beaten up pretty cut so.
Except where it should they be trading like any thing it's sort of associated with -- you know the bond trade.
You know that -- did they really have the court late like that you know -- nearly doubled and out of bonds and dividend paying equities have to give it as well.
-- there there are a lot of there are a lot of groups out there to do a lot of correlation trading.
And so that they're looking at what what are things straight in like it in in the dividends that have done dividend paying stocks have done so well.
They're attending a trade off of -- -- and people were chasing them so doesn't know what should the average investor be looking at dividend paying stocks were portion of the portfolio now yep absolutely I think the volatility in this market will give you an opportunity yet people are selling out of these -- because there were -- interest rates to selectively -- ones -- became the opportunity.
Fantastic guys very informative.
Scott -- -- -- the.
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