Highest level in two years trade headlines have us on record high watch for the s p, a closer call for the dow and nasdaq and would be the 27th record close of the year for the s p. Joining us for the other, stephanie link, good to have you here this afternoon. What does it mean . The computers take each headline as if its fresh what a difference a year makes is all i have to say last year we had tight fed policy, no idea what would happen with trade. This year we have much more accommodating fed and seems were getting some pieces of certainty on trade may not be what we want but making progress. Now i would argue a lot of this is priced into the market given weve had Market Expansion on the multiple but, you do not fight the fed and at the same time the ism and pmis are stabilizing and the data this week has been pretty good on other data points on the economic front we might have risk to the upside in growth for 2020 and thats why the cyclicals are rallying ive been biassed, its been
Much as yesterday, of course, when it posted one of it best days since january joining us for the hour is mark tepper, founder and ceo of Strategic Wealth partners. And mark, you know, a rally like this going into year end has got to make your clients feel good but do you tell them not to expect the same thing next year . Thats absolutely the conversation were having with clients right now. I mean, it has been an awesome year markets are up about 30 all on the back of no Earnings Growth whatsoever. So its all been multiple expansion. Its all been an increase in Investor Sentiment so were telling clients right now, manage your expectations for 2020 dont expect a repeat of 2019. I think, unfortunately, a lot of Retail Investors tend to have a shortterm memory when it comes to market performance. So, its not easy. You do have to work at it. Expect good gains in 2020, but nothing like this. Lets focus in on the big stories were watching today Frank Holland is tracking the nasdaqs run to ne
Slowing economy. Joining us for the hour, stephanie link great to have you. What do you make of this market right now . I have fatigue over trade i really do. Its impossible every day it changes. So im trying to ignore it and focus on fundamentals. Today i thought we got some good data on the economy. The philly fed better than expected vince were better than expected meaning he they went own maybe were bottoming. Lets see the flash pmis tomorrow existing home sales up 5 yearoveryear good consumer, lets talk retail earnings have been very good Minus Department stores and some one office. I think that bodes very well for the consumer fatigue over trade but excitement over m and a. Very much so. Im still excited by trade. Im more excited about bristolmyers closed earlier than expected. Thats a great story for 2020. So theres a lot underneath the surface to this market of whats going on and thats what im trying to focus on versus trade. Lets get straight to that big story, the potential c
Light today. Ittle a is still a risk tone risk off tone today. I want deeper action with our markets report is ranging from equities, bonds, currencies, and commodities. Small caps are having a great day, they are bricking to a 52week high. Chart. Ake a look at this our colleagues are seeing this breakout happen, the s p 500 and blue on top. The russell 2000 right there, they risk on the rally. The small caps are not so much, seeing a bit of the trading range. This is until today when we see a bit of a breakout, now that we have the small caps on board. Roomoks like we have some to roam run. Have beenn equities doing quite well, so what is the cause of this in the u. S. Equities . Its really emerging markets, you see the emerging markets index, this was from about the performancertlived of u. S. Equities reached its venous its zenith. What would make this much worse is that the biggest contributor to the emerging markets index, alibaba, was not doing well. There were shares of the tech
Brexit and Global Stabilization may mean a gradual may mean gradual hikes, but they did change the ascension on brexit for their latest projections. They wound up looking at brexit for their latest projections. They see inflation not hitting 2 until two years from now. Most importantly, two dissented and voted for a rate cut up when he five basis points. We are joined by bloombergs nejra cehic outside the bank of england. You are looking at these headlines the same way i am, as they come out. What stood out to you . David yes nejra yes, that ters, one ofo dissen whom was michael saunders. If there had been 80 dissenters, he was one that was expected. That split vote had been any dissenters, he was one that was expected. That split vote coming as a surprise. I am just taking a look at some of these headlines here. In terms of cutting the inflation and growth forecast, that was expected for both 2020 and 2021. It really is that split vote that has come as a surprise because all of the ec