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Stock market turmoil: Time to buy or sell?

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    Detected Closed Captioning: LIZ: STOCKS REBOUNDING AFTER A TUMULTUOUS WEEK ON WALL STREET THE DOW CLOSING UP 330 POINTS TODAY AFTER DROPPING MORE THAN A THOUSAND POINTS, ALL THIS AS PRESIDENT TRUMP SIGNED OFF ON A $400 BILLION BIPARTISAN BUDGET DEAL. IT SHARPLY BOOSTS GOVERNMENT SPENDING AND LET’S BRING IN THE EXPERTS, CEO MARK ROSENBERG, AND MIKE LEE ADVISORY GROUP PRINCIPAL. FIRST TO YOU MARK. THE ECONOMIC GROWTH STORY STILL THERE, THE BACK STORY DIDN’T CHANGE WHAT’S GOING ON IN THE MARKETS? >> SURE, I THINK IT’S UN QUESTIONABLE THAT SOME OF THE ECONOMIC FUNDAMENTALS ARE STRONG , WHAT ARE BAD ARE THE POLITICAL FUNDAMENTALS IN THIS COUNTRY. WE HAVE A FLYBY NIGHT FISCAL POLICY AFTER A PERIOD OF ULTRA LOOSE MONETARY POLICY WE HAVE ATTACK FUND KEY STATE INSTITUTIONS, WE HAVE GEO-POLITICAL RISK COMING UP, UNDERMINING CONFIDENCE IN THE U.S. DOLLAR SO WHILE ECONOMIC FUNDAMENTALS LOOK GOOD I THINK THE POLITICAL FUNDAMENTALS LOOK BAD THAT’S HIT THE DOLLAR BEFORE AND THE BOND MARKET. LIZ: MARK MAKES A GREAT POINT YOU COUPLE THAT WITH ROBOTS. NO HUMAN BEING COULD CREATE THOSE STOMACH LURCHING, YOU KNOW , 500 POINT SWINGS, RIGHT? >> IT’S NOT WITH 200 SHARES, RIGHT? LOOK, THERE ARE, LOOK, IF YOU’RE PAYING ATTENTION TO THE POLITICAL SPECTRUM IT’S IN YOUR FACE AND SEEMS TUMULTUOUS. LIZ: IS THAT THE PROBLEM? >> I DON’T THINK IT REMOTELY HAS ANYTHING TO DO WITH ANYTHING RIGHT? WHAT I THINK IS GOING ON RIGHT NOW IS THERE ARE TWO SCHOOLS OF THOUGHT. ONE IS THAT THE ECONOMY IS BOOMING. THE MARKETS TAKING OFF, THIS BULL MARKET IS FOR REAL HAS NOTHING TO DO WITH QUANTITATIVE EASING THE OTHER SCHOOL OF THOUGHT IS SECULAR STAGNATION AND THAT IS FALLING APART IN FRONT OF EVERYONE’S FACE . THE ARGUMENT THERE’S NEVER GROWTH ANY MORE THERE’S NEVER GOING TO BE ANY INFLATION AND INTEREST RATES AREN’T GOING UP. THE TEN YEAR TREASURY WENT FROM 205 IN SEPTEMBER TO ALMOST 290 NOW. THE 30 YEAR TREASURY — LIZ: WAIT WAIT SO WHAT’S YOUR OVERALL BROAD POINT HERE? >> THE ONLY REASON INTEREST RATES ARE GOING HIGHER IS BECAUSE THE ECONOMY IS GETTING STRONGER AND THE ONLY WAY THEY HAVE TO GO AND AT A CERTAIN POINT THE U.S. TREASURY MARKET HAS TO REFLECT THE GROWTH AND THAT’S WHAT WE’RE SEEING. LIZ: WHAT DO YOU THINK MARK? >> I DISAGREE. I MEAN I THINK IT’S CRAZY TO SAY POLITICS DOESN’T MATTER WHEN WE’RE ADDING $1 TRILLION TO THE DEFICIT AFTER $1.5 TRILLION TAX CUT. THAT’S WHAT’S PUSHING UP TREASURY YIELDS. THAT’S WHAT’S UNDERMINING CONFIDENCE IN THE MARKET, AND I THINK THAT’S POLITICS, SO I’M NOT SURE HOW YOU COULD SAY IT’S IRRELEVANT. LIZ: GO AHEAD MIKE. >> THAT’S NONSENSE THOSE NUMBERS ARE OVER A DECADE AND SO BETWEEN THE TWO OF THEM IF THEY ACTUALLY WORK OUT THE WAY THE CBO SAYS THEY WORK OUT. LIZ: YOU’RE TALKING ABOUT THE TAX CUT? THAT’S $250 BILLION A YEAR ON TOP OF $4.5 TRILLION BUDGET THE TREASURY MARKET IS TRILLIONS OF DOLLARS LIQUIDITY MOVING EVERY SINGLE DAY SO WHAT YOU HAVE IS YOU HAVE THE SPREAD BETWEEN THE FRONT END AND THE LONG END AT 75 BASIS POINTS SO THE BOND MARKET WAS SAYING WE’RE LOOKING AT LESS THAN 1% INFLATION, LESS THAN 1% GDP GROWTH SO NOW WE’LL SEE A GAP OUT SO THE FRONT END OF THE INTEREST RATE CURVE IS COMING UP AND IT’S ALWAYS THE BACK END. LIZ: SHORT-TERM AND THE BACK ARE COMING UP? >> AND STEEP ENING AT THE SAME TIME. LIZ: GOT IT. >> ITS HAPPENED VERY FEW TIMES IN OUR HISTORY CAUSING A REORGANIZATION AND REPOSITIONING OF ASSETS, TAKING US TO A NEW REGIME. LIZ: SO WHAT’S YOUR FORECAST? >> THIS IS A FANTASTIC BUYING OPPORTUNITY. LIZ: OKAY. >> THIS IS THE — LIZ: SO YOU’RE A BULL. >> ABSOLUTELY. LIZ: YOU’RE SAYING THE MARKETS GOING UP AND MARK YOU SOUND BEAR ISH. >> YEAH, BEARISH TO THE EXTENT THAT POLITICS ARE GOING TO SAY ECONOMIC FUNDAMENTALS ARE STRONG NO DOUBT POLITICAL FUNDAMENTALS

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