Lets begin with the markets today. The dow marching closer to that 20,000 level as everything from the transports to small caps, nasdaq hitting record highs today. Josh, what, if anything, is still cheap is the question i pose . You have 40 new stocks hitting 52week highs in the s p today. You had 112 yesterday. Is anything cheap enough to buy anymore . Let me start by saying this is a great environment for people who didnt panic during all of the big bad event that is we had this year starting from the things that went on in january and february related to china, continuing through, you know, the brexit drama this summer, italian referendum. The election here. If you stuck to your guns skpurks owned cheap stocks, you are doing very well. Value is outperforming substantially. Small caps that couldnt get love for two years are also doing well. I dont understand why we would say that thats going to stop. The its important to point out the four best sectors in the s p were all negative in
They used to force companies to buy stock. Now its prohibited. Earlier in the week when we did 300 i messaged you and said, this is definitely it. We have to call the top here, definitely. This has got to be it. They keep going. Another 142. Hope springs eternal. 19756. What is interesting is that, you know, things havent even been done. So we dont know whether deregulation and cutting taxes and progrowth supplies, we dont know whether they are going to put them in. But there was a question recently about whether those things even work. So now were seeing this, we dont know if they are going to do it, but just the possibility we might do them is worth 2,000 points on the dow. And dont you think every single cabinet member he names leads you to the conclusion that it is going to happen. Its got to be the most probusiness cabinet since ronald reagan. I had a great talk with al gore. It was interesting, it was nice, we got along really well. And he picks the Oklahoma Attorney and its been
Sure, but not overly expensive. Are there some risks out there . Of course. The tenyear rate is probably reaching the threshold. Its at a 27month high today. 2. 5. Probably you now have to start worrying about it. The damage has been done so far. Its not turned off the Housing Market, which is the one worry you would have, and if it did turn off the Housing Market, you can bet that the fed would back off the peddle a little bit as far as rate hikes go. They dont want the Housing Market to crater at this point in time. Steve liesman, you got the fed meeting this week. Whats the risk in the red rick th that came out of the fed . They embrace what this market is thinking about the future when it comes to rates and when it comes to inflation. What the fed has told me in interviews leading up to this is, hey theres a risk if they do that, and then you see the fed outlook with higher rate outlook and higher inflation outlook. I feel like were getting to the point where almost everybody wants
Anna very warm welcome to bloomberg daybreak. Rallied,e yuan has 2. 21 . The biggest weekly rally on record. What do you do when the dollar drops and you want to get control of your currency . Bit less thantle what the market expected. What we have for you this morning i want to bring you back to january of last year. Rateis when the borrowing ratcheted higher. They are squeezing. Is rising andrate the fixing rate is rising and the probability of the market taking the dollaryuan above 70 has dropped from 65 to 36 . Is a veryave here active Interventionist Movement by the pboc. Perhaps they are sending a message to donald trump. Anna china says they are doing some expectation management. Lookesting that when you back to january of last year and what this spike in overnight lead to,yuan deposits it led to a strengthening in the chinese currency over the next two months. Whether that will occur again we will see. Hasus bring it into what been happening overnight in the asian equities sess
Jim, josh brown, stephanie link, John Najarian and onset is kate moore, chief equity strategist at blackrock. You know what, kate, im going to do you first. We were going to start off talking about the momentum names which really have had a comeback of late. But as we approach 20,000 on the dow what are your thoughts on where we are in the market . I think were in a good place in the market. Not just because imen equity strategist but equities are the place to be in 2017 and that were getting greater recognition that the improvements and business sentiment, improvements in Consumer Confidence are well founded. I thought the jobs report today and average Hourly Earnings were pushing us in that right direction. I feel pretty good about both Economic Growth and the Market Movement in 2017. You guys pretty much share those sentiments or as we start to get towards 20,000 do you think about lightening up rather than buying more. Im encouraged that youre seeing a rotation and a broadening out