You were out yesterday whether it was sorros, icahn, these german 10year threatening the zero bound. Yeah, i did a piece on mad money when the rich people who are big Money Managers have this kind of natural disposition to being negative, we cant necessarily take cue from them. I take my cue from oil. There is no doubt about it oils under pressure today. I dont take my cue from europe anymore because i believe that if the dollar is weak, right now you cant have a weak dollar because theyre buying so many of our bonds. But i keep waiting, thats the only thing thats popping up, the dollar. I do believe the yields are a little insane in europe. This is draghi doing it and hes having some success, and that is weakening the euro. Thats his plan. But i am again not i am more constructive than most because i just think when you look at the overall profile of the earnings weve been getting of late, and there havent been that many, theyre pretty good. But i recognize weve been up a lot. And its
Lets get right to it. The story of the week was the collapse in global rates. The tenyear yield hitting multiyear lows. That has created a hunch for yields and dangerously crowded trades. Dan, what are you looking at . We know what the trades have been over the course of this whole year. And really, in the back half of last year. To me, it was obviously utilities, consumer staples. Theres two components of that sort of thing. One is the defensive nature of some of the businesses. A lot of revenues here. There was also the dividend yield. To me, they have been become very crowded trades. The most important point i would say, looking at the staples, the stocks have gotten very expensive relative to the market. The s p 500 is trading about 16 1 2 times on a forward basis. Then you have consumer staples, like Proctor Gamble that is trading 21 times forward earnings. I think thats an obscene valuation to pay for really what is atrocious growth over the last year. If you think all growth is
Alley and jon fortt is at post nine, and along with kayla tausche, and joining us is steve case. Great to be with you, good morning. And lets talk politics, with Hillary Clinton widening the lead in the general election and a new poll gives her a 12point lead over donald trump, 4937, and 55 said they would never vote for trump compared to 33 for clinton and steve, we have been over the potential impact on the entrepreneurships and the vc and the changes because of immigration, and trade, and what is your read on the election overall right now . Well, i was over at the capital this morning meeting with the senators and the democrats and the republicans to the ask about the innovation, and entrepreneurship which is front and center, and frankly so far, not front and scenter. A lot about the topics, but not how the nature of work is changing, and the next wave of innovation is going to be requiring a different mindset from entrepreneurs and policy makers and regulators, and hopefully that
And if you dont get the quality right, this business wont be here for you. Miami is my hometown, and its also home to over a million cubanamericans. Since the castro revolution, cuban families have come here to build their homes and their businesses. They bring their culture while embracing something that is distinctly american the American Dream. Grafton furniture is a shining example. Started in 1964 by esteban grafton, the Custom Manufacturing Company Makes everything from sofas, chairs, to tables. Steve this ones 154 by 96. Lemonis his son steve now runs the business and designs most of the furniture and is 50 50 partners with his wife, mary. Their son, also steve, is there to learn the business and keep it going for another generation. But when the economy turned in 2009, so did the companys fortunes. Steve the market was soft. Finances were really bad. Lemonis when business slowed, the company and the family began piling up debt to keep the doors open. Today, with limited funds,
Biggest monthly decline in a decade. Weve got the latest from a country already reeling. Absolutely. Better than the real thing . Alibabas jack ma says sometimes counterfeit goods are better than the originals. He outlined his plan for the chinese ecommerce giant. He said theyre basically the same goods made in the same factory. Well, the flip side of that, Signet Jeweler is under fire for diamond swapping. There was a bearish note on the stocks a couple of weeks ago. I think its a great deal of smoke. Some say, its old news and the company has intimated its not going to. So was formaldehyde at Lumber Liquidators until it was new news. Now the ceo is fighting back. In the meantime lets talk about the bridge it fears. Bob pisani measuring the brexit fear. Its brt breathtaking. Yeah, it is. Its a problem on both sides. Sort of a triple roymwhammy. Let me put up the bund here. Its been breathtaking. Remember, the bund yields were 2 going back to the early part of 2014. So its 2 . Thats pu