Youre getting ownership of a company, some are higherpriced, shorter duration. You may buy something at 85, if they refinance, everything trains up to par. We also have some securities that came out of distressed, become equities, but they have done really become darlings of the mutual fund world yet. That transition creates a value gap that is quite tangible and large. Erik what is the stupidest place to take risk today . Josh that is a hard one for me to say. Im not sure i can give you a good answer but i would avoid being in very longduration low coupon bonds of any sort, particularly of investment grade. There is not a lot of upside remaining in highgrade longduration bonds. Relationshipric between the upside and downside. How do you think things will evolve over the next couple of years . If you were to cast your mind for 12 months, where would you be deploying capital . Monthsver the next six it is hard for me to look out an entire year. You dont know what accident will happen in
Take a look at the bloomberg here. We got a look at the daily trading range in the s p 500. This at the 20 day average. You can see the uptake we have seen here. I want to zoom in to get a closer look. The trading range of the s p has wind way out here. Most of the time, we have not seen the market closing at the lows. We had a swing to the downside like yesterday with the huge declines during the afternoon and then coming back a bit. Lets take a look at whats on the move. Yesterday, this was all red. Only two stocks were higher yesterday. Telecoms and down, real estate suffering today. The cyclical sectors are recovering. Consumer discretionary, technology, industrials and energy as well. Financial also recovering to some extent. Some of this has to do with the reflexive bounce back. Some of it underpinned by fundamental news. Take a look at suppliers to apple. They beat estimates. Im talking about macron and sky works. Ronron announcing mic announcing a new ceo. Theres feedback to ap
Trading. Check it out, 40. 21. The last time you saw prices like this it was 2009. March of 2009. We were in the midst of the financial crisis. It was a lack of demand. This time around its not just a lack of demand for slowing economies like china but also massive amounts of supply. Well talk a lot more about whats happening to wti but right now barely holding on at 40 dh 40 dhr 40. 21. The shanghai composite closing down by more than 3 and in europe greece making a 3. 5 million payment to the ecb on a maturing government bond. Athens using money from the latest bailout. Back here in the states a few economic report of note, weekly jobless claims at 8 30 a. M. Eastern time and then at 10 00 existing home sales. We got a couple of other big stories in focus right now. Of course the fed is on our mine. Yesterdays release of the minutes from the last fomc meeting raising a number of questions about the timing of a possible rate hike. Its the question we talk about virtually every day and
Good morning. Welcome to Worldwide Exchange on cnbc. Im sara eisen. Im wilfred frost. We are coming to you once again from the World Economic forum in davos, switzerland, an annual gathering of political leaders, ceos, bankers and business decisionmakers. Our special guests this morning, david rubinstein, he will join us in just a minute. Later, tim adams from the institute of International Finance and bill browder will join us. All of this as well as investment ideas from jpsJoshua Friedman. Yesterday we saw slight gains for the nasdaq and s p. The dow had its fourth negative session in a row. Albeit slight declines. Right now, 27 points on the dow called lower. We did see a rebound yesterday in the dollar, but also in the yields. They pushed higher having hit a low of 2. 3 during tuesdays trade. Today the yield on the ten overnote is 2. 43 . Its been 67 sessions and we have not seen a down session. The top stories today, central banks, ecb holding its first policy meeting of the year
Accelerating losses we have been seeing over the course of the day. 0. 6 areas down corporate earnings continues to be one of the biggest weights today. 90 of S P Companies have reported earnings growth. 7 year on year. Global concerns are another factor. Lets take a look at what is happening with the s p over the course of the day. You can see there has been general volatility trending to the downside. Disney earnings after the bell yesterday along with macys today, that is pulling down the s p lower. We did see unexpected declines in u. S. Oil. That brought up the s p of this. But we are going to session lows now with the 2 00 market now down 0. 6 . I want to show you the s p sectors general health. This is the imap function. Sevenee six of the of the 10 sectors are currently in the red. Consumer discretionary, as it has been throughout today, is down. Not the most, down 1. 7 . Retailers we have a talking about all day, they are falling. Macys, nordstrom, you name it. 10 out of 10 we