Featured Video Play Icon

Investors may find silver lining in market sell-off

In Video by Fox Business NewsLeave a Comment

Tech News Keywords: , , , , , / Page Views: 21

    Goto Source Article

    Detected Closed Captioning: “MAKING MONEY.” CHARLES: PRESIDENT TRUMP SIGNING INTO LAW A MAJOR ECONOMIC DEAL. WE BEGIN WITH A WILD WEEK ON WALL STREET. THE DOW SWINGING MORE THAN 500 POINTS TOP TO BOTTOM. WE HAVE SEEN THIS FOR SIX TRADING SESSIONS IN A ROW. AND THIS IS THE FIRST TIME IT HAS OCCURRED SINCE OCTOBER 2008. AND ROSS GERBER. LINDSEY, YOUR OVERALL FEEL FOR >> IT’S BEEN A WILD WEEK. BUT IT FELT GOOD TO END IN THE WEEK. THE SELLERS WERE OUTPACING THE BUYERS. BUT AT THE END OF TODAY JPMORGAN ASSET MEMO RELEASED A MEMO ON THE SHORT VOLATILITY TRADES THAT HAVE BEEN BLAMED FOR SOME OF THE WILD SWINGS. THEY ARE SAYING THE SELLING RELATED TO THAT TO COVER THEIR MARGINS WAS OVER. BUT THIS IS A TIME FOR INVESTORS TO BE DISCIPLINED. WAS MAJOR MONEY, $24 BILLION COMING OUT OF THE MARKET AFTER A RECORD AMOUNT OF MONEY CAME GUSHING IN JANUARY. SO DESPITE THE FACT THAT WE HAVE HISTORY ON OUR SIDE AND ONE LEVEL AN ECONOMY, PEOPLE ARE PANICKING. >> I GET CALLS EVERY DAY FROM REPORTERS ASKING ME TO EXPLAIN THE CRAZY STOCK MARKET. I KEEP TELLING THEM THIS IS THE SANEST AND MOST OF RATIONAL I HAVE SEEN TONIGHT TWO YEARS. WE ALL COMPLAINED THE STOCK MARKET WAS OVERVALUED. IT’S DOING WHAT STOCK MARKETS ALWAYS DO, IT’S GOING BACK TO FAIR MARKET VALUE AND WE SHOULD BE HAPPY ABOUT THAT. THE MARKET WAS OVERVALUED 11% AT FAIR MARKET VALUE IF THE ECONOMY IS ON THE CUSP OF GOING PLACES WE HAVEN’T SEEN IT GO IN A LONG TIME. EMPLOYMENT IS GOING TO A PLACE WE HAVEN’T SEEN IN A LONG TIME. WAGES ARE STARTING TO GROW. AVERAGE. >> WHEN A TREND GETS OUT OF THAT. WE HAVE A SPECTACULAR ECONOMY WITH SPECTACULAR FUNDAMENTALS. CORPORATIONS ARE IN GREAT SHAPE. THE PREDICTION IS 18% EARNINGS IN THE S & P PARTIALLY BECAUSE PREDICTING WE’LL SEE 5.4% GDP GROWTH. >> WE ARE IN THE MIDST OF ONE OF THE BEST EARNINGS SEASONS EVER. THIS IS THE STUFF THAT NORMALLY WOULD BE ROCKET FUEL FOR MARKETS. >> IT SHOULD BE. BUT SOMETHING BROKE THIS WEEK. I’M A REAL TRADER TRADING OUT THERE EVERY DAY. BUT OUR ORDERS AREN’T FILLING. WE ARE SEEING THE SWAMPING OF THE SYSTEMS WITH SELL ORDERS, AND IT SEEMS LIKE IT’S AND COORDINATED EFFORT BY SHORTS AND I CAUTION INVESTORS, DON’T LET THIS VOLATILITY AFFECT YOUR OVERALL SENSE OF WHAT’S RIGHT OR WRONG. THIS IS THE ABSOLUTE BEST TO GET OUT OF THE MARKET NOW IS ABOUT THE DOLLAR BEING LOW, AND THE VIX COMING BACK. THEN THERE ARE THE MACHINES WHICH HAVE TAKEN OVERRUN AMOK. IS IT A COMBINATION OF ALL THOSE THINGS OR IS IT SOMETHING NOBODY >> I THINK THERE ARE A LOT OF THINGS HAPPENING DRIVING THIS MARKET LOWER AND DRIVING THIS THESE BIG SWINGS. UNWINDING THE BALANCE SHEET. WE HAVE NO IDEA HOW THAT’S GOING TO TRANSITION. THIS WILL BE A BUMPY RIDE. IT’S SOMETHING — AS MUCH AS THE FED CAN COMPLAIN, THEY WERE DOING ALL THE HEAVY LIFTING DURING THE OBAMA ADMINISTRATION. THEY ARE LOWERING REGULATIONS. SOME PEOPLE ARE SAYING JAY POWELL MAY BE A HAWK. I DON’T KNOW WHERE THAT COMES FROM. >> THE FED WILL HAVE TO BE VERY, VERY CAREFUL IN INTEREST RATES. GOING BACK TO WHAT YOUR LAST GUEST WAS TALKING ABOUT, NOT SEEING THE TBHIERTS MARKET. YOU ALSO DIDN’T SEE GOLD RETIRE AND BONDS START TO MOVE HIGHER AS THE STOCK MARKET WAS SELLING OFF, WHICH TELLS ME HOW FEARFUL IS THE MARKET? THERE IS SOMETHING ELSE GOING ON. INVESTORS AREN’T GOING TO THE SAFE HAVENS THEY NORMALLY GO TO. CHARLES: PAUL, YOU DESCRIBE THIS HOW DOES IT PLAY OUT THROUGH THE THESE ARE OPPORTUNITIES. THINGS I MENTIONED EARLIER, WE’LL SEE DOUBLE DIGIT GHAINTS STOCK MARKET FROM THE — DIGIT GAINS IN THE STOCK MARKET FROM I THINK THE FEDERAL RESERVE WILL KEEP THE SAME THREE RACES OF 25 BASIS POINTS THIS YEAR. ONE OF THE THINGS WHEN PEOPLE ARE TALKING ABOUT TRILLION DOLLAR DEFICITS. UNDER THE OBAMA ADMINISTRATION HE WRAPPED UP $9 TRILLION IN DEFEND STATES AND WE GOT ZIP INFLATION.

    Share this News Post!
    Geographic Location References for this Article Could Not Be Determined.
    Rock out with your Nerd Out

    Leave a Comment