Is now the time to buy as j. P. Morgan says . So i think its a fascinating topic because even six months ago we were having conversations on this joe, judge, about whether or not the market could survive if these companies stumbled and how dependent the markets seemed to be on the faang trade, and of course that is completely untrue and the opposite happened. The russell 2000 raced 26 higher in the First Quarter and massive outperformance by energy and industrials, and i think its a little bit poetic justice for all of the people complaining about how index funds were dropping up stocks and the whole market is apple and microsoft. Wrong again, sorry so now what happens . Well, im long a few of these names and i do think youll see dispersion, and it is 6 trillion in market cap and it wont all be pulling in the same direction. I dont know if i can go full ney y in on the j. P. Morgan call the ones that i think have the most upside in the reopening i would probably say google, alphabet i
Percent. The russell. Theres a lot of focus on small caps, too. Were focused on the events out of washington, where things go from here with the dow coming off its best week since late november there is a lot of focus on rising rates today the tenyear, Jim Leventhal, is that where the core of your focus is today i think it is and ill label it for today im not waking up in the middle of the night worrying about it at least not yet, scott. Youve heard me say over the past few months that current market multiples are justified by the low Interest Rate environment. Well, guess what, were not at 0. 7 on the ten year anymore up to 1. 13 the last i looked i think, but i dont know, 1. 35 is where the market might say, hey, wait a second a case of give with one hand, take away the others the tenyear rising helps the financial stocks weve been seeing that you dont want to seep the microsofts and the apples of the world which ive been seeing are fine at 29 times forward earnings you dont want to
Leventhal. The dow now down by just about 150, s ps red russell is green. John najarian, lets talk about this apple news. Its your biggest position thats why i want to come to you first. This is the report targeting 2024 to produce a passenger vehicle, could include its own breakthrough Battery Technology. It remains unclear who would assemble the applebranded car what do you just think about this on its face well, scott, on its face, weve chatted forever, heard rumors about apple perhaps getting into this space but that key phrase that you just cited, which is their own unique or breaking new ground with this battery, thats something people will Pay Attention to. Youre no longer then just talking about an also ran, whether its an ev or selfdriving vehicle, youre talking about a potential game changer in the battery space thats what everybody is focused on right now everybody from leeand neo and of course tesla as they develop better and better batteries. If apple indeed has some sort
From a prior 3 . Some talk even from dr. Gottlieb that maybe europe seeing this wave of the virus start to peak nationally tom lee says if thats the case, you could have another violent move coming in epicenter stocks, hes says, quote, there could be fireworks this week and he is talking about a santa claus rally. Jim leventhal, do you agree . I do agree, scott ive thought for some time that were going to have an end of the year rally that carries through to the end of january. Youve had an up year. People dont want to take tax gains this late in the year so theres an abeyance of sellers january, 401 k contributions coming in. These sorts of years usually korecrescendo into late january. If you get a correction in the first quarter, maybe late january. But for right now you got to ride this. On thursday, christmas eve, i did add some shares of apple, which is my way of playing this late yearend rally here this is a shortterm trade scott, you and others know im a longterm investors. But
Their largest weekly losses in some six weeks steve weiss, im wondering what the action tells us, if anything, about where we are and where we may go. All right, jim leventhal, i hope can you hear me and we can hear you. Why tonight dont you take that question. So the markets are off about 1 or 2 depending which index you look at. Thats not horrible but it is an omen we clearly need fiscal stimulus to bridge the gaps of when the vaccines are dis wtributed las g largely. People are hurting a lot if youre a Restaurant Owner or employee, youre in trouble and youre scared. This is classic philosophy of hobbs getting us out of the jungle via is the social taxes p we pay taxes so the government will take care of the needy. Im getting kind of hot under the collar that its taking this long this shouldnt be politics opinion we need stimulus right now. Not for the stock market but for the people what, shannon, does it mean for the stock market we all want stimulus because we all know who needs i