Headlines in the quarter some past underperformers are catching a big bid check out these moves and the financials etf up 9 and xlb materials up 3 and on the flipside, outperformers like tech and health care are underperforming the Broader Markets with the xlk etf up 1 and xlc communications up 1 so is this rotation temporary or will this be the new leadership Going Forward . Guy adami, lets start with you. Hi, mel hi, guy well, just about everything is temporary if you think about it except luggage in the great words of eddie murphy, but i digress. I think it can continue and i absolutely think the banks can continue and kudos to karen who has been talking about the banks and saying the pain trade will continue to be higher in the Broader Market what we have said is banks should be trading higher and for example, j. P. Morgan which weve outlined the metrics that i used that was a 62 tangible book and put a 1. 85 multiple and youre talking about a 118 stock and i absolutely think there
River access or waterway for bulk vessels that transports soybean and corn from the pompous farm belt to the south atlantic you know of David Ricardo who is the contemporary about of talked about comparative advantage and here a comparative advantage speaking if this river which would run through the grain belt and give argentina away to transport grain and give them a leg up over brazil and the u. S. That has to spend a lot of money moving the grain in the culture to the to railtrack or whatever and so this is a member could be a game changer the british of the Industrial Revolution do the canal system they gave them the ability to move stuff around. England waterways so this could be a huge game changer it is just like the yes it is there china sees the theyre going to monetize the asset theyre stepping away from the u. S. The u. S. And america are in this the u. S. And china are in a trade war and so its. And its like ok we dont we dont need to look that way we can go to argentina y
This is the kaiser report our of one is there is argentina so many head of. This country for can rock stars yes were going to talk about some of the opportunities that have been taken over the last few months or years and you know it fits into this theme that weve covered over the past few years which is that as soon as the u. S. Used the u. S. Dollar and in particular swift as a financial weapon alternatives emerged and thus said in the end of the power of empire this is happened throughout history hubris often sinks an empire when they become a bully and so were going to look at what a story about china china working with a Dutch Company by the way here this is when the u. S. Lapped all those tariffs on agricultural goods and all sorts of goods that china retaliated by stopping all imports of sawrey being products and of course argentina is a big producer of that so there chinas pivoting and having to really develop and build infrastructure in countries that they want to do business
Could be a huge game changer it is just like the yes it is there china sees the theyre going to monetize the asset theyre stepping away from the u. S. The u. S. And america are in this the u. S. And china are in a trade war and so china is like ok we dont we dont need to look that way we can go to argentina you know we can we can do the new silk road with russia so the u. S. Is not thinking its not unique to the u. S. And it looks like we might pick on the u. S. But the fact is every single empire has made the same exact mistakes for the same exact reasons they become bullies they become hubris stick and theyre used to getting their way and they dont like disobedience and the further away from the empire you are from the center the more disobedient they tend to be and then it costs a lot of money to send resources there and an armed forces and i think we have a big military base just over the border in paraguay i you know it takes cost a lot and it costs a lot to control it to keep the
It fits into this theme that weve covered over the past few years which is that as soon as the u. S. Used the u. S. Dollar and in particular swift as a financial weapon alternatives emerged and thus said in the end of the power of empire this is happened throughout history hubris often sinks an empire when they become a bully and so were going to look at what a story about china china working with a Dutch Company by the way here this is when the u. S. Slapped all those tariffs on agricultural goods and all sorts of goods that china retaliated by stopping all imports of story being products and of course argentina is a big producer of that so theyre chinas pivoting and having to re develop and build infrastructure in countries that they want to do business with so heres a headline china wants to build a greens super highway arjan tina here is the parana river is their main waterway and it dumps out in to the ocean and heres your guy heres argentina is when osiris and china has stepped a