Turn cautious too soon rather than wait until its too late. In addition, marks writing that asset prices are high, quote, across the board. That there are few bargains to be had and that a growing number of investors are embracing increasing risks to achieve their returns. Here to discuss that and debate the memo, the stocks which are moving today at this hour, pete s na jaaron. Also with us is cnns leslie pi pickert going through this memo. It is from oak trees howard marks questioning whether stocks are too expensive. Jim, he says the s p 500 selling at 25 times trailing 12 month earnings compared to a longterm median of 15 he mentions the schiller cape ratio. Almost 30 versus a historic median of 15 right. Is he right he is right in concept. Now this is not bubble territory. Stocks are a little expensive. The market overall is a little expensive. I look at some of these industrial names as earnings come out, trading in the mid 20s for a multiple thats a little bit high heres the thi
Having me on your program. I mentioned what yields have done in the last three months, and stocks have been much of the story, but you seem to be most focused on what yields are doing. At what point do they become a problem for the trump rally . I think they may be now the problem in defense that the more importantly rates have gone up substantially. In other words, housing may begin to weaken, and secondly, we have over a trillion dollars in auto loans outstanding, which could also be a problem for future auto sales, car sales, so i think economically to higher Interest Rates and dont forget for such a long time that even an increase such as we had, which is not huge, went up 2. 6 on the tenyear. Its not a huge Interest Rate, but the increase is substantial. It was 1. 32 on the tenyear. This is a market thats run wild since the election. Do stocks deserve if you want to use that word, to be where they are today on all of this optimism about what president elect trump will actually be
Squawk alley. Morgan, thank you very much. Good morning. It is 8 00 a. M. At snap headquarters in venice beach, 11 00 a. M. On wall street, and squawk alley is live. Starting from the bottom, now were here starting from the bottom, now my whole team here startied from the bottom, now were here started from the bottom, now the whole team here good thursday morning. Welcome to squawk alley. Jon fortt, sara eisen with me here at post 9 along with Business Insider ceo henry blodget. Good to see you this morning. Good to see you. Eight years in and still going strong. The s p rallying nearly 250 since hitting that closing low of just over 676 on this day in 2009. This is the second longest bull market ever. Oil, on the other hand, falling below 50 for the first time this year. Of course, had the worst day yesterday in about 11 months. Just to put the rally into perspective, henry, would you have been skeptical of for a long time, more now than ever . Yes. The higher we go on valuation basis
Actually exist underneath the endless struggles in washington, dow dipping 42 points, s p advancing. 11 and the nasdaq advancing 3. 8 . The market shows that it loves tech in all of its forms and neither angry tweets by the president or angry speech in the house can all the stocks link with trumps real agenda. Tech is ascended because its got the organic growth that Institutional Investors love, but fabulous visibility that you the home gamer thrive on. I know we have been chatting all day about how blackrock has been slashing costs by firing the managerings and let tech pick approximate stocks, so why not booting the underperforming Portfolio Managers and slashing fees. Regular viewers know im a huge believer in indexed funds. Okay . I think you should stick the first 10,000 of your portfolio in a low cost indexed fund. I get a lot of heat on twitter, saying will you please listen to me on this . And you should stay in indexed swaps over into indexed bonds for more surety. But my poin
Julia boorstin is monitoring it. Facebook shares, we should note, volatile in the after hours session, down about half a percent right now. Despite an earnings beat. The stock initially syrininking. This follows a tough day for the tang stocks overall getting hit hard. Facebook is, of course, the last of the fang stocks to report earnings this quarter. So can facebook keep growing and is it signalling the end of the tech run . Dan nathan, what do you say . As far as the move in the after market right now, the stock down 5 from the alltime high it made early last week. So i think its pretty muted. They came in with a quarter people expected. They hit 1. 8 billion monthly active users. Heres the issue. You talk about growth. At some point, they cant grow monthly active users in a dramatic fashion so they have to squeeze out more from Properties Like instagram and whats app. We know they have other bets, working in the Virtual Reality. I suspect you start to see some monetization there, a