Euphoria right after President Trump was elected, right here on this show. Hell be here. First, well start with bonds. U. S. Bonds the tenyear yield crossing a key level now well above 2. 5 . Rates have been rangebound for most of the past five years. Its the one variable markets havent had to face yet. Is a bond bloodbath ahead and if so, can stocks and rates rally again . I dont think we see a bond bloodbath. Weve been in this range for the last four or five years. Clearly low yields have been great for the stock market over the last seven or eight years. There will be some that argue if rates went higher, that would be good because it implies economies are getting better, Global Growth is doing well, stocks should do well, indeed. I would say this if rates rise, the u. S. Dollar should rise. A rising u. S. Dollar could potentially be a headwind instead of the tailwind weve had with a weaker dollar so you can make many arguments this is the one thing i would say. You cant have it bot
Picture. Comes off a day of record closes once again the gains were relatively slight they did come off the highs during the course of the feenl few ho final few hours of the session the Telecom Sector was the worst. Healthcare was the best. The nasdaq was the laggard of the three. Oil hitting a threeyear high thanks to ongoing production cuts led by opec gained about 2 yesterday. Up another 0. 7 . 63. 4, so a great start to the year for oil prices. That continued not just a strong year but a strong q4 in particular tenyear treasury note for you yields did move higher yesterday. For once its been the longer end of the curve that moved higher, faster than the shorter end. 2. 546. This time yesterday flirting with the 2. 5 level, yesterday it picked up steam. The 30year moved noticeably higher people talking about the fact that this is a surprise underlying tapering from the japanese thats driving global bond Prices Higher that shows the way that the u. S. Has been anchored by the Intern
Bobby kotick, is telling us how hes turning one of the most popular games into a Sports League of its own. First, the dow surging back after a spike in rates this morning. A loss is what happens when there are more sellers than buyers those losses were shortlived with the dow closing basically flat so with stocks near record highs again, we thought we would play a Little Mission impossible stock. Your mission, should you choose to accept it, find a cheap stock trading on the s p at its highest valuations in a decade we have our own tom cruise at the desk in the form of tim seymour. Maybe rob lowe. Jack wagner, maybe. We talked about if the airlines are cheap ill leave that to them, if theyre so inclined. Look at Prudential Financial that stock is trading ten times forward p e. They just raised guidance recently if youre looking for places that still offer value, and potentially a rising rate environment, a name like pru will get you done. Financials. With an insurance tail. Im going to
Happens. Its totally lacking in rigger but it happens all the time around here and thats what throwing us off today sending the dow dipping, nasdaq loss 0. 14 . Let me explain what im talking about so you can see how a bullish situation gets turned into a bearish one by mepessimists who want it bo way. Sell, sell, sell. And sell, sell, sell. This morning we awoke to a story of how the chinese are cooling to them. Oh, boy, did that freak people out. Shares came in for sale at the opening because of the chinese perhaps dumping the treasury you know the dow is down 100 points in lightning speed on that one of the principle worries of Portfolio Managers there is no inflection in the yield curve meaning youre almost getting the same return from shortterm treasuries as you are from longer term ones that puts news a situation where we have whats known as a flat yield curve. Something that is often a precurser to a recession makes sense fed raises rates too quickly, falls off and the economy w
Decline in the open and s p in 18 best start in 30 years. Buffett on the market, succession planning at berkshire, stocks not richly valued and remains a buyer but not of bitcoin. Tech under fire a powerful gop senator demanding answers from apple good battery gate the s p is off to the best start since 87 and buffett says markets are not richly valued according to rates and what he told becky a few moments ago. What has happened in the market has been very sensible. Nobody thought we would have these kind of Interest Rates for a long time. Additionally you have the tax act which is a huge factor in valuation. Says the Interest Rates are the gravity to value and munger chiming in saying share prices are not crazy. Point blank tell you, this was becky quick, congratulations, unbelievable interview. You sit there and what you get are people who know more than anyone else alive and they are saying, look, theres some interesting things and lets not go crazy, just because Interest Rates go