Dow plunging 525 points. S p plummeting 2. 37 nasdaq nosediving 3. 02 . I got to tell you, i think this decline is healthy this market needed a beatdown if only a learning experience for people who thought it was too easy when the market is roaring, a lot of investors seem to forget the most fundamental rule, buy low, sell high they want to buy high and sell higher the problem with that strategy is when stocks go down, they go down hard. You tend to lose money faster than you make it rather than being panicked by the sell off you in a very proverse way should be cheering for it we needed this why . Because we needed to break the nasty pattern of 1999 to 2000 so many people refer to during the run the leaders never took a breather. They kept charging higher and higher until the market peaked when they collapsed. Millions of investors led to the slaughter house. I began to wonder we might be doomed to repeat the mistakes of the. Com era. The markets led by a hand full of Tech Companies b
This second half rally continue . Then a stimulus stalemate the latest from washington as both pelosi and mnuchin talk covid relief. And later its been one of the biggest winners of the pandemic, why peloton is getting a new street high price target over at jpmorgan its actually not a bad place to start right there, guys, because for the second day in a row, david, we have had some analysts raising targets even on names that they maintain at neutral, today its b of a which yesterday kept apple at a neutral, they upped their target acknowledging moment tim today they do the same thing with tesla, this Equity Funding will fulfill growth and their price objective goes to 500 plus yeah. Listen, every day brings more things that for me are reminiscent of the late 90s its hard to avoid it. I made some comparisons yesterday, many High Quality Companies of course are getting the fuel this time as opposed to what was a broader spectrum of companies perhaps at much higher multiples, many of whic
What do you think . I dont think its that bad you have plenty of tech stocks up today that have in the green. I guess i dont see it as quite a tech wreck i feel like we have seen actual tech wrecks this year. These are stocks up 100 or more give or take from march giving back like 12 , 8 in some cases. Im not with you on the premise. These stocks are off their highs but theyve been making new highs relentlessly for months. Good point. Let me come back at you and say what about the premise being, stocks were up 100 in whatever they were since march. Was it normal they were up 100 or whatever since march. They were up on multiple expansion. If they were up on all of that and some of the air is coming out of it, doesnt that say they have a lot more room to fall i think its tough to generalize some of them have more air to come out than others and some will continue to report out standing fundamentals without playing any games and see even higher levels than what they are seeing today i th
Buying longer on that curve . If so, that will keep rates lower. The path we are leading down is not a good one. What the fed is trying to do is what every central bank is trying to do, which is engineer growth. Tyler george bory is with us now. Talk to me about what you have been noticing, your take on the big reflationary trade yesterday but then a little bit of a comedown in yields again today. George thank you for having me on, always great to be on the show. Powelll question is, is seismic shift, or more of the same . The reality is there are some significant factors here. The biggest is the acknowledgment that there has been a Material Change in the economy. Unemployment can go lower than policy makers expect without causing inflation. They have issue is, also kind of acknowledged there is a limitation of Monetary Policy. Those two factors we view as material. Shift,terms of a policy what they are likely to do going forward, it feels like it is very much same game. The way we are
Away from new highs. Joe, i begin with you. The question is how are we going to get to those new highs . Value is outperforming today is this the start of the longawaited rotation . Well, your initiating a great conversation, scott, because as you have identified the s p 500 is basically sitting less than 1 above its all time high whats critical, though, in getting there if you are not going to have a significant outperformance from what has worked, which is clearly hyper growth, is youre going to have to have the participation from the value names. Lets put in context where value really is. Scott, the russell 2,000 is still sitting 9 below its all time high it achieved in august of 2018. When im thinking about value i also have to think about value and get contribution from small cap value, not just Large Cap Value because there has been such a differentiation in the Small Cap Index this year. Small cap growth is up 22 year to date. Small cap value is down 12 . So, yes, i believe it h