WRKO>Audio & Video on Demand>>Bonnie Kirchner on the financial markets, Pt 1 (9-1-15)

Bonnie Kirchner on the financial markets, Pt 1 (9-1-15)

Sep 1, 2015|

Bonnie Kirchner, contributor to the Managing Your Money blog on Boston.com, discusses the current state of the markets and also answers your investment questions

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

This story's trending in Boston the boston.com. Morning show on the boys of Boston WR KL. Fifth third one of the New York. When his brother and on this. Beautiful that. Bonnie character contribute to the money blog on boston.com amongst many other blogs you're everywhere she's ubiquitous. Presence in the financial world that the west than I worry that. Learned last night. Carol I would be very Pratt would send out this is I was a great English teacher funny. Great to see how hard it's great to see you realize you're gonna bring up our. Of course everything's relative we gonna Waylon died and two kids from the mean streets of west there incident just him. The brilliant lawyer boy that's a tough tough part of the business through their well and I heard you talking to our former us earlier and he I don't. And you were my bus at one point very briefly and I would really adamant that the that and I actually. Metres. I spent a lot of intersections here she was a so yeah right that's what you words sort of Boston when he landed in our sixty. You know that was that was a little camp counselor thing houses CIT and she was like that they needed now is the best I am grant. How about that as you said she's impressive for a share in the newsrooms and on no doubt about that though we know a lot of ground account with Bonnie including the yeah. Roller coaster that is the stock market things looking up this week on. All of that well at today's the first day it's a hammer were definitely closing out I guess with some big negatives and an open up your statements for I guess it's not going to be pretty. And data we have more problems out of China this morning which is causing some definitely negative futures and about 2% right now. Knows who this is off when they arrived this rollercoaster last week at war and now we're September 1 which traditionally September is the rough less money. Who is on average September is and negative month that the the un averages is down about it a negative 1% so. And doctor Everett is usually known to be. Actually it didn't month but extremely well. Rashard about Wall Street and social media were talking about FaceBook while moneymaker. With a billion people watching and every day. Twittered out so much Twitter has some some rough roads specifically this summer we've got to CEO stock is tank I'm surprised that. Topic that we talk about a lot Twitter and the twist here is really not a moneymaker. Well thought out it's hard to tell what the use momentum stocks what's gonna happen and end and I mean or an hour talking about Netflix yesterday in this is a stock that definitely has been benefiting from from momentum and and it's just speculation on how well it's going to do. And it's that you know it and those stocks might actually be starting to come out of favor group. For Stewart sort of a cutting the cord like. The stock like Netflix surging a momentum stock because people say. Hale I get rid of my carrier don't wanna have Comcast or Verizon. As far as cable and I want an Internet connection but a Malia watch Netflix on it and not the traditional networks. Definitely seem more and more of baton and it hasn't been very good for the traditional carriers as far as what's going on side today what are the issues there. So they receive manufacturing report that came out that actually showed contraction so it would it measured 49 point something anything 150 shows contraction. So that sends stocks tumbling there and that affected Europe even though there are some good economic news out of Vieira. And that certainly impacting. Features here as well as we start this first day of September. You know we've talked to and I talked about this last week about the review or with very Armstrong what what are the Dow futures mean when I look at the futures NC. Plus 75. At 7 AM what does that mean. It depends of the deck. So it's really just as speculation of how the market me open and so it's. And its meaning and measurement of the mood at the market. But as you now anything can change. And futures are actually much more negative earlier this morning may have tempered a little bit so. Now as we could actually have a positive day out. I think we're in need of some positive news to it but you know sometimes we talk about the date being above the Dow being above 161000 you probably remember coming up in number as a young person in the business when the Dow was at 5000 urges a little bit north that's all we see the Dow at 161000. How nervous can you get when you realize how much capital are in the American market at this point. And I think this is some Wyatt. And it what it is leading to use these selloffs that we're seeing right now there's been so much discussion about the market being over value we've come so far so fast. How far that can ago and then you get this negative news that a China. And it's giving people reason to sell Iowa when the market it's it's doing you know it has an uptick. And so at an a lot of chances somewhat can tap and it may not necessarily be valid because actually valuations and individual stocks with the exception of Metroplex. Are pretty reasonable still it's not the Haiti of 1999. When we sunset and realistic. PE ratios. That that really didn't make cents. So things are actually not looking that bad and when it comes to China and we talked a little bit about this last week. Are our exports to China are only 1% of RGB ever higher gross domestic product for Europe it's only 2% so. Right now how much effect on impact. That's also when you look at the world America still looks to be a safe bet were a lot of money is invested opposed to foreign markets correct. Well we're definitely seeing the money scientists and treasuries and Imus as stressed here we've been looking for so long for the bond market to crash because interest rates were gonna go up. But. Actually this is a safe havens of people are looking at quality stocks in the US to purchase. Not just for the possibly ability of them being a little bit more safe and international are emerging markets. But because a lot have been very nice dividends so if you can get a nice dividend that page you more than your money in the bank or some bond and lot of people are saying that's not attractive alternative right now. Bonnie cherish or is our guest on the WRKO Boston dot job morning Sean John me to relative to women. Lot of people come to you is it financial advisors have been him might say but I I needed to have some safe investing here. We're we're we're to like turn differ for an amateur investors are looking for safe stocks what do you tell. It's at well no stock is necessarily quote unquote safe speak it is obviously it's an individual stock is influenced by so many different actors what's happening with the markets what's happening with in the industry of that particular stock. What's happening at that one particular company. So it's very hard seeing one particular stock is SE stock they're just not they're gonna go up and down no matter what and and a lot of things can come into play. And it it up because. Sees a lot of these people that work for public companies. And at the end they get stock as a bonus they get stock options in their paycheck comes to economic and it's a lot of this needs to do a lot of education for the telephone company. Act when it was 96. Remember. There. Aren't that pass Qaeda. Hole now that people would load up on their one company's stock and you just don't want to have that much invested in one particular company because so much can influence. And so important as well and we can get in this here a little bit as we. Move towards a break but assume so important to have a keep an eye on what's going on you don't nationally wanna look at your portfolio every day but as you say you have to be personally invested. It to eight in order to get ahead if you take a look at. Saying great CD rates and money market rates right now they're not going to do anything for you in traditionally people say well what about the eighties and are getting 1516%. Well guess what inflation was fifteen or 16% so in order to stay ahead. That your best bet is to be invested in the equity markets that being diversified is extremely important. And understanding the types of things that your invested in an having a proper asset allocation giving your. Particular circumstances. You know it's good didn't know it's a good investment Ted go to a casino. And now I. And yeah you might be suited effort though it ever okay. We're gonna talk about that coming up here on the WRKO. Boston.com. Morning show it's a forty degree.