S p and nasdaq in the green, as well but its getting on the street Morgan Stanley with a note that says sticker shock things look expensive. You have some on the other side, too, but where are we today in the market if youre working with a money manager who cant recognize the difference between an obvious bull market and a bear market, probably you should fire that person today but second, why are we not focused, instead of forecasts and headlines, why are we not primarily focused on price take a look at the behavior of stocks themselves, and then take a look at internals and things like breadth and, yeah, of course, theres the danger of things getting too good but in the meantime, must oney being made, and look at the way the transports will not give back an inch look at the way boeing is trading right now. Deere gets hammered and comes roaring back Even Stronger than before and now youve got this bounce in the tech stocks that we were told were all overheated they went down between 5
In the year 1929, just before the crash, volatility was pretty low. Not as low as it is now, but actually volatility was pretty low. And then it just exploded after 1929 the crash kind of triggered itself well, shiller went on to wonder whether howard marks memo was a sign that the top of the market was, in fact, deer. Josh, if nothing else, the marks memo, the shiller comments and some other factors have rekindled the debate over where this market is, whether stocks are too expensive, and whether we should be paying much more attention to the fact that volatility is nowhere to be found. I mean, no offense to howard marks, who i think is a genius and bob shiller, obviously, i think is a genius. But bob shiller has been making cautious comments pretty much his entire career. And then hell, you know, say, oh, by the way, im just into it anyway im just owning the market anyway so put that aside. Number two on the volatility commentary, understand, we had low volatility through the 1990s,
Need to have the bond market going with with you. Right now Interest Rates are headed down. You need to see Interest Rates shoot up into this quarter. You also need to see more fed governors saying, listen, we need to do four because thats how jpmorgan gets the additional 3 billion. I like the call. I dont know if i like the call this week because these stocks have gone parabolic. When you see stocks parabolic. Which one has to go . Wells fargo hasnt done anything. Jpmorgan, very high. Thats the biggest issue. Jimmy raises it right there. Should you stay or should you go . The stocks have had tremendous run since the election. Bank of america is 32. Jpmorgan is 23. Citi, 21. More january stanle more. Who would have thought that can happen . I know. But i think you have to i think you stay. I dont think you add. I agree with jim, i think there will be a tactical opportunity to gel out of these names a lot cheaper. Why not take profit in this space . You cant be that kind of trader. In t
Shareholders. Why is this the right plan today . Its the right plan because General Motors stock is confronting a very unusual dynamic. It trades below its multiple in the s p 500. The pe is less than six. They pay out a dividend yield, which is more than 4 . Which puts it among the highest and further, theyre only paying out about a quouquarter of thei earnings, so its very unusual for such a high yielding stock. Which leads us to think theres some investors that just want it for the dividends and dont care about the other 75 of the earnings. And theres other investors that care about the earnings, but not about the dividend b and so, when you buy gm stock, youre just kind of stuck with half that you like and half you dont. So our idea to pay the same money to the same people just do it in two different sets, that way everybody can have what they want. It doesnt change anything else, but when you do some Pretty Simple valuation analysis, if you actually implement ed this plan, which w
Of basic incomes. What do you say to people that their jobs are in risk of being permanently dislocated. I think theres a pretty good chance we end up with universal basic income due to automation. Im not sure what else one would do. You know, thats kind of, i think, what would happen. You know, people have time to do other things, more complex things, more interesting things. Were going to figure out how we integrate with a world in the future have advanced a. I. Thats going to be one of the toughest maybe technology the Technology Revolution has taken place to y today. It took place 200 yooerds years ago, and thats where the ludites were smashing factories in london. The same thing happens now, and tesla what tesla does, what elon does is say, listen, you show me how you can do your job better. Ill get a more interesting job for you. People of tesla are really delighted working at tesla. People working other places, they see if they can eliminate them, they eliminate them. Ill give y