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-- rebate -- foxbusiness.com.
Live good to have you even though the markets are negative it's -- it's good to have you no matter what yeah.
Yesterday 9000 points who -- behavior that -- -- made it -- listening absolutely let's say Martin might be the only one it's easier when that's continents -- thank you might feel -- yeah.
I think -- -- -- at any time explicitly attacked as they have a lot of against him as the.
Comment board indicates George -- going to be here to talks among gold with the civil all the while with a that would be kind of interest you because a lot of people had comments on -- -- positive some negative and summer.
Somewhere in between that lot of people have thoughts on that we'll get into that.
In some detail and then just talk about.
Investing because you know I guess what it's it's actually earning season gets -- as it.
It's fixed price as of tonight now -- reports so I don't know if people are.
Thinking -- report card right you know you could think that.
It didn't have the waiting is the worse than the results sometimes the waiting is better than the results but the anxiety always is something had to confront.
Yes as -- had a -- and I tried last night he confronted his anxiety over the the timing I mean you can't illegals here now -- congratulations you're Tar -- -- on the big victory -- as part of -- that's what the senate senate goes.
An easy win by the way last night turned out yeah but yeah I think it could lead their team and to their credit she's never gave up the game all the way but -- yeah.
Now the guys -- -- states have.
We're definitely excited about that but you -- -- what you wanna talk about vs the Dow's up about 2% now.
We're down one and three quarters percent both the S&P and on the NASDAQ ahead of -- season -- again really kind of officially or unofficially kicks off tonight.
Yeah it does you know I'll -- -- people watching him 1% right now a lot of dignity that's nonsense -- a -- -- not quite -- lofty valuations used alcohol second nothing you're not interest to do -- listen.
Who were clearly hear you for good reason to -- -- -- they don't like his acting up so maybe we could just talk must've -- And -- and the viewers I'm just kidding really like -- not even a good time because of defense even entered my.
The -- of -- is behind.
Definitely hold on is if he's not ready yet let's.
Are -- pretty big deal Robert yes.
We don't know about no no no I don't know -- he did look pretty that's okay -- credited actually you guys that hope that I can on that.
Coming from -- Now he's OK believe that you were saying heck.
So I was staying out of the great game the -- but -- Michigan State never gave up again.
I got pregnant by the hills and earnings season though now not March Madness is another -- actually a trader this morning was.
Saying well now that much medicine subtle way it's the market's version now because we have earnings season starting and it's gonna be.
Madness because right now it's very quiet out there you talk to traders in fact they've got a lot of time for it some days -- got like two seconds.
And they've got a -- to take calls not a lot of training going on right now we saw that with the volume yesterday very light trading.
I fact that I talked to a fellow tar heel -- -- in creating a relation that we're aware of it.
I -- traders gray and now he is -- in -- -- it's.
Fully expecting to retest the lows with so many other people right now and I talked -- a little bit about the the uptick rule which we've talked about being perhaps reinstated to try and stop bear raids.
This is the -- they took away last -- -- two years ago.
In a bull market.
And nine and he was saying he doesn't really think it matters with electronic trading for that from the number of people as well.
That is an interesting talk was -- battle a lot of discussions about that I'm sure you would probably have some from our viewers as well you'd like to comment on that but.
Another thing a lot of people watching her kind of key levels here like are we allowed so many people think we're gonna retail sellers might have toll was 1 on this morning with us from parents on the -- -- -- now.
To that watching -- levels right now to see a sort of who's driving this site where we going with -- recipes at 821 now and 800 not as important -- really the -- of nine level.
Tim -- exception Ellis LLC one of those who's watching that level as of support line meaning that they expect buying will come in there.
If we give below 809.
You start looking at 740 because we had such a huge move up.
That's why this is important because you want to see.
In the stock sort of trading in Iran or range more narrowly which is what we're seeing right now that's missing your racing -- and looking -- and the financials -- his.
It's a certain parts they're really -- went straight -- Okay you need to have a little bit of straighten -- otherwise you can expect perhaps of -- -- -- -- -- at McDonald's for telling it straight yes yesterday was.
Yes -- us why is everybody so fascinated by your name today this is -- conversation before another did not mention Robert the the family of the -- series -- and whether.
I don't and a draw them I guess you know I -- interact with them.
We have we'll talk in fact -- so sure from my name.
Blows but can't think of America Goldman Sachs Morgan Stanley today -- some -- -- -- up a little bit down a little bit but it doesn't look like the financials are really driving the market today at all so it's kind of this feeling of.
Curtis Terry and below are by the way the premarket and then you know but from some of them are higher now which is -- I watched -- banks can also watch the alcohol is because if you look.
-- China's market has been on fire -- continuing to rally over there and a lot of people are again looking to China and the emerging markets.
For demand for material so you know the likes of aluminum.
So to see how well below what their forecast is what are they saying about international demand we know demand here.
He's gonna get better when when the a stimulus money starts to hit the street.
You know they start to offer built in fact I would certainly expect -- -- and -- win -- auto sales improve you would expect to see Alcoa.
Golf a little with a good transition justice to George euros.
I'm in really -- -- -- basic material -- Jason wants you to get on Twitter.
And I think he -- are okay.
I'm not really excited to and that's something that he would like -- -- policy to go back to your office setup for the quarter and over the Carolinas blood to jump in now I'm great at get a little brother -- glad to -- -- -- Governor Paterson has had on the tradition thank -- -- I guess -- And now we're gonna get to our poll question.
Today's of all you can get involved in Twitter whatever else that Ned that poll questions pretty simple were you putting your money.
And we're giving you some choices that -- -- to cities and count our long term bonds stocks under the mattress.
What money -- like that when we have very clever producers and send what money.
That is unfortunate incidents so yes go ahead and weigh in let's see as far as who's winning right now where -- putting your money what money is really the one that that leads.
Sense of humor which I appreciate.
We're gonna talk a little bit again about.
-- the markets and what direction to go from here but we also have to talk about some of these safe haven place you know.
We mentioned under the mattress we don't give you the opportunity need to opt for a gold.
Or any type of while playing like that with a -- -- -- that are playing out as as equipment is safe haven right and they don't work or.
They can protect your money no matter if there's inflation or deflation so that have been we always want to talk a little bit about because it seems like this interesting talking to Kevin -- he was -- I -- today.
On Fox Business morning aside and -- yesterday kinda getting ready for.
The interview and what are the things he said if he thinks that the equity markets have changed forever -- matter whites.
That be in the equities is and the stock market is not the place that you're gonna be 401K is not going to be what it is.
Putting your money in the stock market as just a regular place is not is not what's gonna happen -- that we've always heard and alleviate her on our program.
That equities always outperform.
Whatever their national -- term but he says he disagrees and says this is going to be -- every step by and this is not going to happen equities will not give -- the best return.
He's not the only person thinks that by the way and was McDonald on was McDonald's going to be on a little bit later showed great blog -- it's a great -- but they -- -- today a great blog.
On our website at foxbusiness.com.
About 41 K plans and people's 401K plans and I'm looking forward to having her on because we've been harping on this -- buy and hold strategy -- mother and her.
It it really does apply anymore and this has some thoughts.
Not that we'll get to -- on the way to her own money that she's let's sit down with her own money that's actually a ball cap hit it was.
But you know adjusting that she did though -- is treating it upstairs a moment ago anyway let's get to George -- because we said we're gonna talk to drew great to see again George for the work -- apparently got a problem when I in my journal and variety.
It could really get talked to people kind of read about the way you approach this whole thing you think.
It's a lot better than just having somebody sit here and dispute statistics exactly how we got to talk to people which is a novel concept from.
It is it is enough content but we really enjoy having -- to thank you.
I think I would -- let's kind of go back to where we relaxing -- -- -- -- -- last time you.
Moderate to talk about -- as well so yes we did it finally did get the fetus had a spat out by yourself but maybe you can choose -- -- about goals of civil reports.
Let's talk about gold because it's been much -- and -- and silver -- recently.
I mean you've had a major Brad Pitt had billion dollar gold sale from.
The EC being -- -- 35 -- have tons.
I'm -- and the IMF is planning to sell 400.
Tons of course that brought the market -- about every time.
This market -- been brought -- by some unforced seen announcement.
Or event that turned out to be a buying opportunity -- so right now is it now buying opportunities right.
But I think is a Tug of war going on major Tug of war okay.
You have the inflation people who say all the part funny and everything else that's going to hit.
I heard you say it earlier -- when it hits the streets you're going to have been inflated money supply -- had -- bring inflation.
So of course you want to be long gold because that's really the purpose of holding culture makes sense right and then you have to people who were saying all -- all deflation.
The economy's terrible the end of the world is coming from whom they might well be right -- at heading at a time for -- right that's the whole point and that's what's going on and if you look at the price of gold.
It seems to go up.
-- it it's a plateau because that 950.
Dollars it's unbelievably.
Tempting for mining company.
Yourself so you have producer selling every time you hit that 950 feet -- forget gold disease and a lot of different things a lot of different price again think about right that's right people think well gold is either a piece of jewelry or Barton.
But gold -- a lot of different things just like platinum.
Problem may be a forecaster.
Of the savior of the automobile industry today I think platinum is doing a little bit better.
Clinton and let's talk a little bit about me mark and I Chris -- isolated from DC and he oh when he's got a graphic.
-- do -- his thoughts on goal of -- your customers a good thing for platinum with the same type of that market -- can can go home and hot in the summer now so flat and different spot.
It was very different kind of -- platinum catalytic murder for automobiles.
Diesel engines are coming in a big way probably by the end of the year especially from the German carmakers.
But trucks and cars and of course that means more use for catalytic converters.
The oil industry that has been re claiming platinum because you need platinum.
To crack crude oil into heating oil and gasoline.
And so they are starting to stockpile a little bit of platinum not much and then -- the wolf.
In the Far East platinum which trades pretty well and -- -- and Tokyo there's a dollar surrogate.
Right -- here's what you -- which is very very interesting in this is what the so called conundrum is.
Tons of gold that are being sold are being used in order.
To -- dollars.
Right and it barring that means that for the dollar eventually will be spent.
When that dollar is spent.
It means inflation yes prior to that.
There could be some shortages.
In dollars and so.
You have people who say gee they're selling their gold -- acquiring dollars but they need dollars because commodities are dollar denominated.
Bryant and saw when copper goes up and silver goes up.
And at some point may be our crude oil will start to go up again as we see demand later on.
And in this summer.
You might say gee they're going to need dollars to buy commodities.
-- -- -- -- -- -- -- -- -- -- Somewhat bullish on the commodity.
A complex across the board that made its interest to get Alcoa reporting -- -- talk to Phil -- about some of the stuff -- -- Did you develop caller reported tonight -- -- you're gonna have basic materials come into the conversation with aluminum but it made me so in general over what time frame your pretty bullish on commodities I'm generally bullish on commodities because going forward there -- two things number one.
The commodities are going to be a general market forecaster.
From a possible economic impressive economy's got to prove at some point when it does come -- -- do well.
All of oh I don't know about all of them because you have different sets of commodities like a -- -- example that would platinum -- would be improving even though.
We think that at the moment there's more demand destruction.
Then there is construction.
So I think eventually platinum may improve palladium on overlooked metal could improve.
And then of course the based rebels have been doing very well recently I mean you had a holiday in China yesterday but still -- in Shanghai.
Almost two dollar car.
Her book and separate there -- his bond I think in -- and some people are agreeing with him saying you know.
Gold that has little intrinsic value of talking about you know where you gonna quit having your money -- -- -- -- really.
In terms of diet is not there are.
The intrinsic value is the fact that it maintains purchasing power no matter what no matter what it has liquidity.
Yes portability has no political allegiance and and yes.
If I'm always saying that in a Great Depression because people bring up the Great Depression.
A kilo gold border fortunately your Plymouth that does exactly the same thing.
Except your -- Plymouth.
If Palin talking about safe havens and what did you -- -- money and if the type my Kevin Cramer from this morning saying that really this is not.
I recession or depression this is a reset so if this is a -- -- our economies reciting equity markets now that they are.
-- -- -- -- If there are very personal confidence right from the confidence is not an equities obviously can we can -- we confidently share confidential single.
-- confidence has been in gold time immemorial.
And gold has continued.
To maintain purchasing power over a long period of time.
Gold is misunderstood.
Ready to face with the understanding that if the stock market.
It keeps going down down down gold should be going up right up.
But that's a misunderstanding because sometimes the same people that own stock stronghold of what they have to sell to raise money they show both saw that last year or -- -- -- exactly you know that's exactly what was going on.
When the prime brokers told a hedge funds to raise money.
They have this indiscriminately -- -- -- as well as everything.
Says we're sitting here and the next thing -- -- -- question Ryan from Phoenix -- remember -- from yesterday he was asking -- questions about real estate and he wants to -- I think remember Ryan.
It piece of property over the next three months -- -- He's face down try to put my money and things that I can actually -- -- -- -- value out of -- a curious Ryan if he means you can actually east of the house and not that you set of of you know some gold.
So what -- it -- you know you haven't they live -- -- they're wondering what to do with their money is.
Do you think the commodities are the right played out even though you could see inflation in commodities and deflation everywhere it.
Depends what commodities because you forget there are other commodities besides -- right therapist's office.
This coffee sugar -- OJ confounds me -- the grains.
And of course they're all going to be affected by not just the economy but whether transportation or.
Politics today there -- sensitive right yes they're going to be a lot more internationally.
Now -- it is it's showing.
Our viewers I'm sure gonna want and are our people in general wanna know how do you invest in this if you're an individual investor and indeed gotten -- asset allocate that you don't put all your eggs in one basket right out of -- in terms of did you say for example -- -- by gold.
But what's the best way to Michael cured we -- -- -- -- -- you heard about.
You remember who and what you are in terms of risk him you have to remember what sort of hold you want to buy because gold can be bought as an ETF and exchange traded fund the GLD -- GOV or the -- you.
How one is -- comics 100.
Which is the idea you -- -- -- to GOP which is the London based second fixed 400 obstacle right hand that trades millions and millions of shares today but either one of them.
A hundred shares equals ten ounces of gold.
And if you want your ten ounces of gold you can get it that -- back.
Means you could buy gold that way and not have to worry about futures contracts going up and down and being.
March and they're not margin or roll over course so that's one way -- there of course points.
-- -- -- -- -- -- Collectibles.
And hard not such a good -- because you're paying a premium -- being -- collectibles some.
Aren't and then of course on a tax basis.
Gold is normally a collectible.
And therefore it you don't get the same tax benefit.
As if you bought.
Something in the city and then well I don't know about -- I've not familiar with the real estate.
All I know site -- and -- it's that big right.
He writes for so that's a micro focus altogether -- to the other way people do it often is -- -- one of the big gold mining companies like new monitor.
Well here's the problem with that effect if -- Gold goes way up sometimes those are shares fell coop because they may have sold forward except the American companies like new -- Barrick.
Don't really hedge.
They don't do forward sales to any extent.
Right and that's from the -- -- there's actually look at a chart.
One of our very talented editors agree Charlie Brady just sent this out we'll try to get this up on the on the lives but chat at a -- our viewers can see it also -- -- -- saying that.
Over the past year gold itself the metal has outperformed the stocks right.
Yes some people trying to get into all by -- that even this year.
Well after the sell -- Gold had recently you're still up one or 2% for the year.
Which you can't say for the average stock price of the -- -- bettered only actual medals so I guess you'd recommend maybe buying the GL DDT effort or the -- you and your -- -- -- for -- we were gonna talk about silver.
That's -- okay.
-- -- -- -- -- -- -- What it's over used and if it was over V indication and if he goes out that the economy's recovery -- -- yes because silver also has industrial use especially in your computer as you're typing away.
Contact points and various components on the computer.
And then of course the big news for silver is gone which is photography.
That was the demise of -- -- etc.
Silver is still an important.
Silver is quote poor man's -- Silver is also.
Very much in demand in places like India.
Bryant and wife that just because it is different products that are being you know it's the lesser cost than gold.
And silver has always been a measure of success holding children India -- -- So it's cultural more than it's very cultural.
Sit and OK so let's let's bring down a little bit so would gold being more I -- what.
Apparently gold and silver silver more like an emerging market play and if our economy recovery play and then gold is more -- -- safe haven play or.
You know no matter what happened what -- well.
That's that -- -- -- so you don't have to feature is -- do you think -- raiders every other rebel force a lot of over central bank's need and owned and Bible.
To prop up their currency.
So okay so heavily carried -- do you find the Russians will store gold for removal.
I'm the venezuelans.
-- -- gold social movement the other.
Countries that need to keep there currency alive forever if -- from -- that how weighing in -- he says the promise that gold is no longer what we -- the value of the dollar aren't simple logical enough to not help the dollar at all.
If it was attached the dollar still we would be better off -- to -- central bankers are not happy.
When gold goes up because it's an economic and political barometer.
-- then that my heart goes up what does it mean that that means they're more turmoil more problems.
And so they don't like the world to look at that.
-- of course gold is a competitor to the Central Bank selling their product which is low.
-- you agreed and then it would be better if that gold is tied back to the dollars that was saying or how does the dollar in the currency market kept playing with what you're doing when you're transaction and I.
I think also something that probably the G-8 the G-7 -- G-20.
All have different ideas on -- basis.
Their own country's needs and then of course the world -- look at gold holdings.
Monday look at currencies the result of people looking for their own needs of the G-20 meeting last week which -- -- -- by the way.
Just like what it was pretty constructive.
-- you know could it.
I go to everybody expects nothing really taxed once so we got something out of another word -- copying the -- yes G-20 MG 8 PMG seven.
And gee -- -- really in the long run get anywhere but at least this one part came I would very constructive statements.
But and on that Jonathan is asking -- -- -- in -- it's you know many episodes so if you're looking season in India silver is important for -- -- -- if you look what's happened to the last couple of years gold was not traded in Dubai.
Frustrated him by.
It's very active for gold market going on and -- -- and Tokyo.
Hong Kong is starting pay futures market in gold the Hong Kong exchange and interest thing.
And and in Shanghai of course very important.
Have -- -- big market is gold while playing very valid taking it in India for I am I think the average person really looks at the price of gold.
-- -- conversion to their own currency.
No matter where they are no matter where they are especially lately South America as well.
Few local psyche on your -- gold gold coins are on par heading home gold coins I do have very little bit of one of these.
I just keep it yet you you don't you try to -- -- great -- and who committed an -- to distribute and we let you tell the whole story last time about how gold really helped out.
Your family and yes that was tells that story real quick -- tell you haven't excellent member who had thought it was a good start and long story.
Make it short I was born in England my father was a factor in Europe Hungarian and I was in the -- during the war as a child.
Escape we came out because we were able to have some gold.
With us and that's how we -- out of Budapest -- -- 1945.
And eventually came to America.
And I'm an American by choice but by birth a lot of news said that the that that story's not that uncommon though right that gold no not at all I think that.
The liquidity of goal.
-- wafers gold bars.
Where are very important.
Not just in World War II World War I.
But thereafter and many other places in the world.
If it's a personal -- how much electrical what what your family had anywhere -- -- coined saying what I don't have time we have -- -- wafers and it won't contain.
Cash can imagine -- really wasn't currency much like she is our project that if you miss him and his national -- George thanks a lot real pleasure will talk it is so thanks for coveted -- time and didn't enjoy having gone in an interview Thursday to George you're there.
Talking gold by the way is it 882.
Dollars an -- -- exactly so our plan well black and OK let the dogs have done OK well like I kind of feel good -- -- don't you -- going to govern don't go thank you George.
That now is that we didn't really gold silver platinum are gonna have to think if some other metals -- today.
There's about except for frank it's at some are possibly like this yeah.
-- -- The Dow is down by the way back to stocks for just a brief moment were down by a 152.
We've you know obviously the sell off yesterday and that big.
Question this for me is whether or not this earnings season is filled.
The make and more importantly the break of the recent four week kind of rally that we've had in the stock market that was probably the best for weeks right since 1933.
Don't care if anxiety isn't half well there what -- -- -- -- we get the big bear market rallies when things are terrible things have been terrible now.
And that's why -- And you know you get that and then why wouldn't be surprising that if we gave up number starting to Wasilla and it's always a lot -- -- surprised what Libby or break I don't have no idea what I'm saying I love how people act so surprised with.
You know everybody's the bottom is innocent to get a couple days of rally power -- to the races -- them on the market sells office pool for a fair weather fans come off frenetic cities via.
Should -- and speaking of stats that he -- -- that's delta global advisors out in.
Your neck of the California -- good to see -- Exactly Californian we appreciate each have been telling what about -- right now from -- I have -- we're from different temperatures that are really aren't.
Norton Internet nice to have you -- this is good to have a -- perspective will get close to Wall Street.
Every now and again submitted his setup -- with -- crack house -- I think -- this is nothing but a bear market rally we're getting retest of the lows that we saw.
I think I have a two part answer that question actually on March 12 that wrote a post.
Saying all right I'll say and I think the -- is the end and what I meant was I thought stocks have probably seen their lows.
I've been a bit surprised that the pace -- the advance since then so you know we've come so far so fast -- I mean it's been.
You'll fifteen plus percent in the matter of months that's wild admitted -- would it make sense.
-- to this.
You know this pace isn't sustainable shirt and it doesn't surprise me that we're pulling back know but.
-- it's going to be pretty tough as we move in -- seasons here for earnings to disappoint.
And for that matter for it for them to take stocks lower than they were.
A month ago went despair reign supreme.
Why in the -- have been wrong all along right about earnings in other words they've they've always estimated wait too much we edit a stat that said that.
You know as of July -- oh -- the estimate for S&P 500 earnings for the full year.
Was it something over 95 bucks 9550 it's down to 6253.
So it's come way down.
Who's to say it's not gonna keep coming down in other words usually the these analysts are very slow on the uptake in terms of coming down on their estimates I know they've come down far enough could -- disappoint more.
Yeah you're right I think if it's possible start -- that are up -- suspect they might -- A little optimistic at the moment however the stock market looks forward and doesn't necessarily.
That listen strictly to analysts and their estimates and in the stock market was pricing in a -- well ahead of that -- you know -- just like you -- -- in the market had been selling off.
Before analysts -- in and they -- and to.
You know they're gonna tentative sort of -- V.
Current atmosphere and assumed that's always going to be in place of the -- so I think will happen at the bottom where their -- will -- come too pessimistic.
Thought one of the reasons I believe that -- -- is likely in for stocks at least an important intermediate term low.
Is that we got this change in the mark to market accounting rules and I think that alone is crucial linchpin.
Not only was it -- -- key to the ongoing balance -- spiral in the financials but.
It was also.
Pinching the error willingness to make loans because they're afraid in many types of loans that they might have to make that they'd have to take almost immediate right down so.
Now that these rules are changing.
We're gonna get more clarity we're gonna get immediate balance -- -- -- any of these financial institutions but you're also gonna see an increased willingness to land.
And with all the excess reserves that have been built up in this system.
-- he might actually get an economy that stricken from the fire -- a little bit in the near future so I think analysts' estimates might turn out to be too pessimistic.
-- and economy drinking.
But right now nobody assumes the global economy's going off the cliff right but if you believe that that you have to believe that central banks.
Just aren't going to have no impact.
That's stimulus measures.
And if that's the case will of god help us because we -- -- that point where they are literally pushing on a string.
And it would mean that certainly depression is indeed -- hand if that's the case then all bets are off and nothing's gonna work.
But if you believe that government measures both through fiscal more importantly monetary policy will ultimately show up in this economy.
That is have to look at what the Federal Reserve been doing recently they've been.
You know not only we know what they've done with -- interest rates taking them to essentially nothing now there.
Trying to force liquidity into the system -- the expansion of their balance -- and in this case.
There have any plans for how they're gonna withdraw let the -- in the future so I hope.
What we've seen is a deleveraging economy that's been trying to get rid of death but that's not gonna go on forever whatever the economy.
He's ready to take on new debt.
And ready to expand well -- you have massive excess reserves built up on the sidelines thanks to Federal Reserve action.
And that's high powered money that can be lent out many times over -- you might not just see a turn in the economy but sort of a boom it'll be in an inflation led.
Unhealthy boom but it could surprise people where this economy is heading.
By the end of this year or early next.
-- suggest from the Bronx has a question he said we know earnings will be bad but also spinning off of those of the comments he dismayed.
-- -- What is price did it -- bad earnings are pricing is a stimulus story price in his -- fed efforts of those goalies are already priced Antonin.
What do you think the market already -- four.
And now I'm really trying to.
I wish I could go to the crystal ball -- on -- on all of those things but you're speaking big picture I do think that.
You don't need it became pretty mainstream to hear the I really think that.
Businesses and financial institutions across the board had come to the conclusion -- we better batten down the hatches and just that we're gonna act as though this global economy is literally jumping the tracks we'll -- -- -- did jump the tracks but -- the second remain our.
It indefinitely I don't think so and I think what the stock market has reacted to it moved too quickly in the last month and it's pausing now but I think what it reacted to is.
The reality that hey -- probably gone overboard pricing in negative outcomes we.
Having a lot of us really don't like the long term foundation that the next recovery is going to be built upon its built upon more debt creation.
And it's going to be very inflationary amid the foundations that we're -- for inflation are just astronomical at the moment that said you can.
You'll cling to some sort of dogmatic perch about -- the -- of the dollars that hand and American empire near the end is near or deserve.
Assess the situation for what it -- that.
Central Bank policy is all -- monetary and fiscal policies are likely to have an impact.
They won't be able to resuscitate the areas that -- blown up such as real estate.
Money won't fly back into those same asset classes but it's gonna show up elsewhere in the economy and we'll probably get a general.
Inflation that recovery.
Okay so -- as we do that and check on the engine -- -- -- a few minutes ago wondering what sectors you like in this and then.
Obviously think the bottom hasn't put it in stocks and and just so you know where where -- generally speaking should be we the people be thinking about putting their money if that's the case.
Okay well with nearly a trillion dollars in excess reserves built up in -- banking system again high powered money I cannot find anybody.
Who can tell me.
A -- asset class that has a better.
Underlying fundamental story behind it -- gold and precious metals -- -- your last guest was talking about gold and precious metals but you know it's my experience actually that.
It's actually still in under owned asset class believe it or not we serve -- firmed up the -- advisors on.
-- -- -- consultants on the number of related portfolios unit investment trust that -- and when we go out and speak.
Two rooms full of advisors and brokers on this topic.
We are constantly stunned at how -- the top of the precious metals is.
And how few of them own any of it for their clients so I would actually argue that is the deflationary asset classes particularly treasuries.
That are -- -- expensive today and that it is the inflationary asset classes that are still -- remember goal only looks like it's near tie in nominal.
Right all right so that's in just interrupt for a quick greens entity is -- our board when you -- -- gold is -- At this price no way native with 700 bucks announced but not now he -- is too expensive what -- say to somebody says.
But this you don't give or take 88900 dollar gold is too too expensive to jump -- -- -- you missed.
That the rally.
I don't claim to know be near term lows and highs for gold.
The longer term I don't think it's gonna much matter whether you -- -- 700 dollars an ounce or 900 in inflation adjusted terms.
Its all time high dating back in 1980 was 850 dollars but today that will be work.
4300 dollars an ounce of -- or is it near its real -- -- not at all.
-- -- Right so we -- but the bit about called talk about the Fed talked about stimulus talked at the what's going on politics though and how that's intersecting with the investment community that's -- our viewers really like to talk about let's hear your perspective that in California being that your.
Far from Washington and Wall Street -- what you think.
Well we have our own that's straight set up politics Aaron Beard in California so I don't know that out of state is very -- Show the whoever has the country believe that solutions for -- mess but yeah I think.
You know the sense generally amongst investors at least is -- an odd how rapidly government is growing.
While the rest of the economy is working as hard as it if it can -- So while the private economy tries to become smaller more efficient.
The government economies on the public sector economy just grows and becomes more bloated so you know you might have seen off about a week ago this.
That speech that was made by the Daniel Hannan -- European up.
Did an English member of the European Parliament later in his own prime minister saying we can't spend our way back in the prosperity and it is and I think -- -- he touched on represent a wide swath of the investing public never was very worried about.
The policy we're kind of find -- government probably Djokovic had to carry bottles and authors of bubbles that maybe this is a political bubble.
If I don't think there can be any doubt I mean were already running down when it.
A track -- freight train towards an entitlement time bomb -- social security and Medicare those entitlements the demographic clock.
Turns against us in just a few years here and now we're gonna add more more liabilities and and it's it's really not unique to one party.
The past president did it -- is tremendous expansion of Medicare via the prescription drug benefit.
And now this president simply picking up the ball we left off everyone thought there were voting for replacement.
They -- rejection.
Of President Bush and his big spending policy for what they've done is hired -- is even worse it would jump out of the bush trying to hand.
And into the Obama fire you cannot like where we're headed long term.
Physically but then but he thought that we are voting for him in his rejection of bush policies in a lot of ways but president Obama's pretty up front on the campaign trail and every he's.
You pretty much knew you're getting in terms of the spending and and he said he was gonna try to spend spend his way out of it and he's coming to spend as well -- -- -- agree -- it.
You may think there's a better way of doing it but.
You know these Democrat and that's you know that's that's the -- and that's the way he he and some for the most part a lot of the party as answer has done for years.
You -- I'm not sure I agree with that -- mean you're very savvy political watchers that you had a certain suspension of what he was going to pursue -- policy but.
I mean if you recall.
In the general.
His message became a lot more subtle -- centrist and he actually ran as Obama the tax cutter promising tax cuts for 95% of the American people.
There was some hope.
When he came here and that he will be much more of a pragmatist type of Democrat in the -- line of Bill Clinton but he's nothing like that I see yourself in the line of LBJ are up.
-- our rights are so you thought it was more a Clinton Democrat and you're getting -- Liberal Democrats -- understood there -- -- just say.
For now that where they could -- you as you said this is not this this policies in place and are in our countries also you know that lead the policy of spending a lot of money into the European project to some but last week.
For the most part is in place all around the world government power.
Is really you know at the forefront more and and even if we don't like getting if we disagree with a lot of that what's going on.
If you're an investor in that environment we knew how do you change and he didn't -- you might appeal to change all that you've got to adjust to the environment such it to some extent and and if so what are you what are you doing differently because you make those assumptions.
You're right and -- so this is -- I've got a two part answer the first is what you mentioned is precisely the case against.
Those -- -- dab on the dollar.
Gold bugs and by the way I spoke mostly about gold earlier I am not a gold but I hate to be able jungle night because -- -- of its implications.
And I long for the day that I can say had I don't think anyone -- own any of it.
But you know there those -- of the dollar and of American empire tags that say get your money to completely out of the US dollar in the foreign currency is what makes no sense fundamentally because you're right around the world.
Struggles with a lot of these challenges that we face Europe can't spend anymore because they're already so messed -- on the right so.
Second part two of that is in the short term.
What are the things that has occurred recently -- over the last eight months or so there's very been a very strong inverse correlation between the stock markets in the US dollar.
Stock markets down US dollar up and vice Versa which means.
The US dollar recently has been strictly against other currencies because I've been acting is a bit of -- safe haven so.
If in the short term we're gonna see a little more unwinding -- a little more.
Markets returning to will be willing to take on risk I think you can continue to expect the US ought to pull back a little bit not collapse.
A pullback which means that can actually enhance your gains in foreign markets around the world -- -- -- -- you probably -- it felt a little bit more overseas.
With your investment.
The good enough of it.
Mean we're gotta run here in a minute I saw overseas meeting lot everywhere chip just real quick before to go.
-- the growth engine is.
China and the nation's closest to check -- so.
I think you wanna tilt towards Asia.
You can take it slight bias towards the commodity currencies of Australia and then Canada's investment destinations but.
They're not without risk and -- risk there is very much a cyclical one but again you're very bullish I think you can tilt towards.
-- Asian oriented investments and commodity type countries.
-- chip -- delta global advisors.
Are -- to talk to the good views on charges on just about everything so I'll come back to begin with us at some point I can't thank him.
And thanks allies have great to have you so that's interesting.
And gold bug that -- on the gold bug is that gold by the anonymous right -- I get a split the -- he thought he.
He's got a one I don't wanna be doing this but he yeah that but I have to do -- much like Phil Flynn and that -- give Phil Phil Flynn is with us in Chicago and now thank goodness out.
That's insanity you need against him and everybody -- going to -- for gold bugs -- yeah.
I -- yeah this for him.
Yeah -- you know.
-- -- No actually I kind of like gold for long term investment to be honest and I just think we got too high too fast.
But you know historically come out if you're worried about inflation down the road.
I you should have a certain percentage of your portfolio in the gold market it -- -- its outperform the S&P 500 for the last couple of years.
-- it is ahead of itself right now but -- in this type of environment.
You have the uncertainty about banks -- Whether or not US banks are solvent or foreign banks are solvent you know at the end of the day the currency of last resort and still is don't -- now.
-- we overplay in that are we raising those concerns prematurely.
Possibly but you know at the end of the day -- is still a very good investment.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- You know today there's not a lot going on -- -- candidate as I have very slow -- day a little -- what followed were from yesterday you know it seems like this week we.
Spring break exactly what I was gonna say -- got the you know you've got passed over tomorrow you've got Good Friday and I've noticed myself that the volume and it leaves a lot of markets.
A lot lots of you know what that could mean -- that may -- some of these.
Movements of steam.
That you know people are loose and optimism that people are run in the gulf may -- just very simply profit taking.
You know I have of the -- so we're really in that kind of holiday mode here I can already.
-- today and am right now and you know right now stocks are down -- very quiet day.
Oil made its move early in the morning just kinda hang in there.
Gold up a little -- -- with a lot of nervousness especially to get into a holiday market.
The markets tend to be thinner he -- season Freddie.
Big moves that don't make a lot of sense and I think people are just fallen in the horn is a little bit going for the safe haven fire.
Oil -- -- now below fifty dollars a barrel again you know an oil broke that fifty dollar a barrel mark everyone saying oh there's confidence that the economy is gonna recover and this is is a sign of that.
And now we're down below fifty dollars what we're doing read anything into -- oil market -- or is it just a move like.
You know like we see maybe -- equities.
-- you can't -- you know if we hit close below fifty dollars a barrel.
Gas light holiday volume and we confirm -- next week.
If it could be a sign that people are losing confidence but I think it's too early to tell I don't think there's enough.
Passion behind the trade right now they're very slow.
You know kind of trade not a lot of the only -- -- -- I don't wanna read too much into it but I wouldn't say deaths.
When we didn't have optimism about the stock market.
When oil was about fifty dollars a barrel.
It really didn't seem to react to what the stock market was doing what to the foreign currencies were doing and I think if you remember what happened late last week.
We saw some of the same type.
Slaves in in the market place that actually loyal -- that all time high.
You know for example.
Last week we start returned to begin carry trade I look at -- -- by -- TVM whatever.
And a lot of times what traders would do or funds -- as we do when they get their profits from the territory they buy oil it was like almost doubling up.
Because the oil had an inverse relationship that the dollar.
Well this week we had a bad stock market.
You know people are nervous about all the things that are going with the banks that.
The talk of the downgraded -- of people got nervous they ran away from gold yesterday.
That wind to the -- with the safe haven and ran into the dollar.
-- -- coming back into the -- little bit.
You know that in the end of the day I I think there are a little bit more nervous but it seems to be more of the defensive type of life.
Gone into the holiday than any real trends -- There are basically the guys behind his head hanging out talking loud disembark Vista party is that what you're saying there's really no I don't -- I didn't win it they're hanging likely.
Please send us an order and -- -- Edwards -- favorite candidate.
Yeah I don't think you -- to look at ahead -- but -- -- I'll -- about one of the -- I see it out.
Whenever I -- back there but anyway he says he loves he's kind of -- when everybody else is on the case and that's when he makes the most money to do.
If these crazy -- -- an -- and it doesn't take a lot.
You know you got one big water you can move the market -- on -- -- and it doesn't have to be on guard even though the volumes very like buying products and often require Good Friday will be -- -- We will be here -- excited about.
Yeah I'm not at liberty to say when did you -- let me just before touching off the one setting ourselves up for and then after losing.
-- -- week what's next as the next big thing you know.
You -- my mind I think commodities are going to be coming back in a big way you know I I.
Really do consists of the situation we find herself in -- -- now.
Let's see the economy is as bad as some of these guys -- -- it in the stock market's gonna come back down.
How -- the -- gonna counteract that.
You know they're already in the quantitative easing credibility gap which basically means you're going to be printed more money you print more money the dollars that will lose value conceded that run about.
This is the key to watch next week guys look at the yen carry trade look at the currency could restart put -- on the same type of trades that we did.
You know before this crisis began he got -- Get a bullish on commodities all right Phil finally answer our poll question for -- -- everybody can weigh in on this where you put your money right now savings account stocks.
Long term bonds under the mattress or -- less choice what money.
What money we're talking about money -- I think you're not got a really nice mattress serious -- it's very get anybody wants for the -- -- -- -- -- -- a lot of -- under that.
You know I can illicit behavior and term investor I think there are some excellent values in the -- I really different.
That doesn't mean we can't go down some more it won't mean we won't have any rock and roll but I think -- that's gonna do a lot to support the stock market.
Start picking stocks will be very selective don't do it in a big way but I think stocks is where you're gonna have your biggest return I was -- -- real estate in there.
Ride why you hydrogen like real -- now you think the prices are low likelihood Wednesday I think there's an excellent values there.
Or you know the real -- atop your mattress Syrian government run another round of treatment aren't right in very realistic heartfelt god take care we always appreciate it guys Phil -- now all right.
Trading Fox Business contributor out of Chicago jetted off to Fox News -- -- here behind me playing with the board here in the second.
There she is.
And you talked to was mcdonalds here and Adam Shapiro is with this for the last fifteen minutes or so of the show in general be back.
-- a -- we have a couple things on the cover guys welcome thank you -- quite -- -- here.
Liz wrote a great blog today show -- -- a great block bank account my letter about why you're here inside the -- Well great -- -- 41 case today -- -- we start there because our poll question here about where you're putting your money and you know -- what money bubble blob of people's.
For a one case had just gotten hammered and you kind of took it on from a personal -- -- we should just -- post -- posted earlier but just -- post.
This is blog and our -- nobody can read it while we're doing it -- this conversation he took it on for -- personal level.
I -- and what you know what happened was this stock market -- and as I -- in the blog is unearthed a lot of the it to explode a lot of market myths.
And -- a lot of deceptions I mean I'm always struck by the people who say oh I'm only down 20% -- right.
I ran that by -- I -- trader friends on Wall Street he said oh yeah and I just saw Elvis right by any unicorn hair cut so.
So -- he's saying is.
So you say if you some real serious issue that -- viewers.
Two right back and weigh in on your show Connell yeah I was met with a lot of resistance when I try to move my money at a fidelity fidelity gave me -- very hard time I wanted to put more of it.
And cash and it and that you know this started and in summer of last year spring of last year I really want to move more to cash.
And they kept fighting with -- -- -- saying you know you've got to protect your balance you need to stay in the market long term that's the only way you're going to make money.
And you know after -- while I said look it's it's not only took the money now I want to go to catch.
All my all my money at a fidelity it's not all of my money but.
You know a good slug of it.
And it because basically fidelity fidelity is to -- -- -- that's -- their loyalty is poor and the fees that they charge.
Will need to act like Caterpillar's.
-- your account but my my one concern was.
About safety about what I really didn't want to move to -- -- The -- whole crowd on Wall Street is on my ninth -- my honey -- -- Since about fifteen good there on the tenth and eleventh now coming up to that.
They're the guys used to treat their own personal books daily their own -- really -- the diagnosis they -- buy and hold and that's really bothersome so what do you do now and -- -- some thoughts about.
Where were out in the market.
-- how you can look at them or market drugs and going back to the sixties it's been an advance retreat mode for decades we're clearly in retreat mode but there's a way to play the mark.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Have -- at that trusts us now a big issue right for investors and it was brings up fidelity but not Newt she she's fidelity but.
You know this this mindset of being told what to do with your money and just leaving it there and hoping for the best.
Not like -- wait a minute.
My my cousin that is an investor as an investment advisor right -- -- I've worked with her and she wanted me to go to the stock market recently with some cash -- -- you know -- I'm not buying for -- 401K so let's leave that to the side in cash it's not earning any thing it's fifty basis points in the checking account where it's sitting.
Which is better there are about par with a 75 basis points -- for a six month CD and I said the peace of mind of having an off to the side is more important to me.
In a buying opportunity right now I'm still doing the 401K glad even my own cousin who I trust impeccably.
I wasn't going.
-- JS lead I had done -- good.
Dressed up blood being thicker than -- that night I thought it so -- right we do -- -- hear your advice so what has people I'm sure no reading along with the blog at home.
What should we knew about it put more money Max out.
Actually if you know where where it where it hurts.
Two to my mind is what I read people who write to me and saying look we're in retirement wouldn't do.
And that's painful and you know so yeah I'd say stick stick on the sidelines for now in the cash position.
But we do want to -- -- cash is king you want the companies with a strong balance sheet I do like gold.
I do have some -- -- -- in gold but I'm looking at stocks that are recession resistant such as PepsiCo.
Kimberly-Clark unlike in the baby boom retirement trends activity -- -- that's a ticker CUV celera's another Beckman Coulter.
And the dividend payers that they now you have stocks I have I can move my money when I move my money a lot of money through -- at Wachovia and now we're design.
I myself I have been doing it myself I have been but I want some advice to 89 -- is you know TV is you know kind of takes -- a lot time.
So I can't I can't let the market -- -- can't trade -- -- my account.
As I would want to do but I have you know some ideas I think that are strong and what I'm also looking -- I haven't invested yet an apple or ExxonMobil -- Cisco or Microsoft they've got solid test physicians also Pfizer and Johnson & Johnson.
Are very -- too.
But again -- -- they got it realize that the market is in advance retreat mode of course we've collapse about 45% off the peak.
In October and again I can't stress that enough that if you have your money with a big mutual fund company and the per person on the phone gives your hard times says you know.
Stay in that you don't have to -- money ticket.
Yeah -- it'd -- too late for us if I can ask -- question because I'm not an average Joseph here.
I've got my options -- the 401K.
And I can't do individual stock through the for a long captions that we haven't got to do the different funds that are offered through our plan and you wanna stand up 41 K because of the company match of course I write and be even if you're getting company match right now because a Lotta -- when he's already got matching for the time being.
But still get the tax break right so shouldn't I be buying funds site even if some of the classic tennis I -- -- -- little -- within my IRA within my other 401K accounts that I have from other companies right you know I hear what you're saying I'm absolutely right that you can you can't make these moves -- -- -- a hero for a -- can't count it against.
-- -- yeah.
Remember it until there's a lot less a lot of -- -- -- your money's not there it's.
Their fees again act like caterpillar City Council they care about earning the fees they want to hold onto your money they have an incentive to.
The -- money it's not their money.
And I can't tell you -- -- stories I've heard nightmare stories about people being given a hard time on the phone when they try to move their money out of stock market because Smart people saw this market cracking up ahead of time.
Yeah so it's it's very problematic.
That did you -- -- if you let's say about a hypothetical let's have got my 401K is ten dollars and Fidelity's what do you do fund.
Cannot somehow convert that into an IRA that I can then direct.
Without being penalized into an individual stocks artistic yes I think you can that.
That's something -- Feeling -- and competitive and not get it out and you know yeah.
And -- equipped for guess that's a great which is a question that you raised and I think there are different rules for 401K.
He should you fun yeah.
-- -- Feedback here as usual than people -- McDonald who Delilah I thought -- theory yes somebody wants a -- -- -- Paul wrote that -- we were talking about individual stocks vs these mutual funds and -- a -- -- with the fee structures of the mutual funds.
And again you made a point already -- about -- -- the yeah.
Ahead of a real big yes I do like -- exchange traded funds I am looking at them they tend to have lower on lower fees right then the -- expense ratios threat.
And you know you try to find a good index tracking fund in fact I want to make note that representative George Miller got to California chairman of the house education labor committee.
He's abstaining backers didn't find a congressional backers for legislation that would force 401K plans to offer.
At least one index fund to -- that's an easy way to to.
Follow the market hitting the -- that taxes.
Yeah what I think.
Military about that because at that to a that you hear about -- your 401K is that if you withdraw all of that it went -- can maybe you're talking maybe I have that wrong you borrow from me pay taxes Hatfield didn't penalty yeah they are not happening you know begins right with him in the managers tell you -- to keep an industry saying that -- -- it just seems like.
You know really have an option -- yeah I need you pay a penalty -- -- You may pay I think a 10% penalty and -- pay taxes on.
The balance that you think you try and think it's considered right and I'll let the other thing -- I want to remind people -- still investing your own company's stock is on a promise and -- he -- at WorldCom now Citigroup AIG Fannie Mae Freddie Mac.
Don't CEO yeah I think get a flood event but not the whole thing right I don't have a you know the old eggs in one bass -- I just say did I anger this can this coalition forum in case can raise your blood pressure the -- because you know.
In my four when -- look like you know there was an invalid lurching around the hospital down for some time actually.
And that's what I don't know what it didn't -- -- money how.
Considering retirement how fidelity gave people a hard time including me.
When we want to move to cast prisons protect physicians -- here -- there that people stories about this this is to meet it is disgraceful so -- -- the way the -- then the strategy sees that it make sure you weren't.
Can and other -- -- with them who unfortunate things were throwing they said.
You know you're the only way to make money sustain the long term again county health and environment the -- and energy prince had an idol -- started the segment on our night for.
But there's really -- and people who still had -- We'll hear from viewers and I guess counted -- -- I had all the long term stuff -- it was a really stocks outperform over the long haul.
Mean is an anti say a lot of those same people the ones trading their own accounts in the daytime right -- they're telling other people say enough.
Talking people out of moving their accounts and the test it's it's disgraceful they have.
You -- -- I mean yeah you know you make of.
At that point the compound that returning your farm and Kate stocks are cheap I think that's that what -- -- I say yeah.
So you want to get -- -- make Smart choices as Phil Flynn but from now I was just saying before.
And that is to say what you know had been that company's apparent with cash positions and solid balance -- have to -- it differently if you have taken -- and you run it through the blog I -- -- -- -- images Stephen Hayes quit did -- pleased because it's important the Dow closed above about 1000 in 1972.
If so that's at 616 by the end of seven before a rally in 75 -- the -- 815 to an unbeatable in that 23 points over the next six years.
If I climbed above 803 I think in 82 and a it was a slow growth you know slowed up elegantly let me just talk about something I was -- trade advantage.
Quick last question for Lisa and I think this is a great and we have I have not looked at my -- -- -- every year what do you suggest they do I assume I have lost percentage that will scare me.
Do you look at it now today immediately got no idea I used to treat McFarland can't count like looking at the -- -- path might just win.
I don't think that's a good strategy doesn't.
Why wouldn't I get -- -- I understand that.
-- a lot of people look at it Nate and I know I see the Alley her -- now than him.
Are we won't talk a GM for a few minutes and you know that you've been covering it today and there's couple things number one the idea of the bankruptcy may be being set up -- up.
To this this Cecily -- program and I'm Leslie that's the last really affect GM is saying that the stories everyone's reporting today about they're speeding up the process for a bankruptcy reorganization -- -- -- -- we're saying it's just speculation have no comment okay what's going on.
They're looking at breaking up GM.
Into two companies she would have what some people call good GM.
And bad GM -- all GM in new GM essentially under good GM or new GM you have Chevrolet.
And cattle catalog as DNC however would be Buick -- well because.
GMC popular trucks but the GMC dealers need -- -- to sell as well Buick very popular Carswell is that top performer in the -- surveyed JD power survey.
Bad GM -- -- GM would be what's left to Buick Pontiac Hummer Saturn.
Liquidated yes so what about Saturn Tom in North Carolina just wrote as you were saying saturn's out of Harris Allen would be liquidated.
And then part of what would the question is what happens to the pension.
Do they move the pension of over two bad GM and then do traditional bankruptcy and just go forward as a very strong company John -- -- with that I just global insight.
Says that if it's just said he Cadillac and GMC Buick you have a very strong viable GM going.
What exactly Adam isn't.
Got car lover and you put a car lover for decades my grandfather he's a brilliant about cars he knows so much about cars as.
The fifth out of six of the two of -- -- -- I thought my my question is who the newest film which company is gonna pick up -- I -- -- that he thing.
The president well it depends which message on talk about friends since they have some say the art factories that if they were on the block might be part of it you know it's going to be pennies on the dollar and -- you know you've got the Chinese are looking -- is -- of other companies that are looking -- -- -- -- allegedly twenty companies have interest in -- right now everyone's assuming that's the Chinese.
NASA doesn't have factories in the United States but there's still you wanna have -- the United States are still the largest car market in the in the world.
And the nine million units a year ten million units -- not -- what has to go up.
So if you wanna come into the US journalists were producing cars here and I -- it would be looking for -- and I know we're gonna talk about the Segway fame guys is on our website caucuses dot com on the main page -- the sources GM partners with -- -- -- --
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