Mar 6, 2017|
Adam Shapiro (Fox Business, Market Update) by The Financial Exchange
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
We're joined now line our good friend Adam Shapiro from the fox this network I do and Adam. Monday very well eight by the way congratulations understand that Fox Business has now overtaken CNBC in terms of viewership. That is correct both in how old and in demographic. And fail that English. We can charge more for advertising. Well they that's if that's rate and he has worked harder for Witten that with the problems that network and on to lead. Thank god I was party response and we signed on October 2007. Again congratulations they wanted to talk about the mark AA yeah a lot of the hedge fund guys have been wrong. A lot of big investors have been wrong. The market is up I was just looking at the stats and it's a 20% the recipe in in it is in the last twelve months 6% since New Year's Day. And the S&P is up 250%. Since the start of the bull market in 2009. So this'll bull long in the tooth. It depends who you ask if people think there's we were talking analysts week two weeks ago here but does that work were talking about 23000. Oh by the end of the year and there were people as we started the year were saying you know will finish it when he won five by the end of this year. So the answers is simply would be no not yet beak as. Investors are Wall Street. Banking tremendously on tax reform statement Newton is secretary of the treasury and on Fox Business last week. We are pushing aggressively to have that finished by ought we can expect something you said. About hedge funds. You don't listen to me was the warm bucket. And warm but it's gonna tell most people why are you playing individuals stopped going to an index. As it got to 401 came out for one case at an index on the option. And he proved this point he is a famous bat that ended in June 2007 against management. And it was Saddam for one million dollars and then lose or donate that plane that took to a charity. Warm bucket BS and 500 and an index fund outperformed. Hedge fund 56%. Though they hedge what is going to lose the bet that would be anchored in million dollars at this across the board this happens all the time most hedge fund whose. Yeah yeah they do innately. Eat it yourself in trouble I think Adam when you try to time this. You know you. Beat the consensus was the market was gonna crash if trump was victorious and just the opposite has occurred. Yet Heidi Google Paul Krug man from the New York Times and the like he wrote today after he wrote it at 1 AM actually. That November not in. About out into the world was here he actually that there's no way. And we will recover from this team is wrong. To get expert get him to. And is rightly am. Yet what they at. That point that's just he was great and we did that Tony Robbins on morning with a Rea. Today and he pointed out that was the study that showed that even a few times a marketing correctly but went into an index fund. If you bought into that index on an out argued is the vanguard index 500 their fidelity Spartan 500. If you went in that index on which mimics the SP 500 that you went into the top of the market and it was the collapse of the crash. Depending when he died in which you held over twenty years the difference between those two went in the top of those who bought in at the bottom was about 141000 dollars that it. Not a huge amount of money. You know if you're talking about a twenty year investment spread to don't be afraid. I'm going in at the top just remembered that yet to have a long terms strategy here to go to the top and pull out six months later. Beat them. Where you raise a good point because. An old friend of mine a mentor told me Barry it's not. About timing the market it's about time in. The market and you have to be willing to Lotta people if you remember back you know you know I worked together back in 20082009. And the wheels were coming off right and people were nervous or even as recently as 2011 it people someone out of their stocks. My ask the real world example all of this is twenty years ago obviously passes I think in 1998. I left a job that it was one of my very first job and I had a small or one K at the time. That's my brother who is a Wharton grad Stanford MBA. That's my Big Brother is that what you do with this heat that don't do any thing other than roll it into any suggested. And indexed by but it and I did. That was 1998 I haven't touched that money except I converted it to a Roth IRA. Skiers later but I haven't touched that. In 1998 it's been in that indexed on and that amount of money that I rolled over 1998. Went out very well and then it crashed and everyone else's investment round about may 2009. And today. The amount in that mine is a little bit greater it's it's multiplied. Almost four times from the original. And that's the ups and downs of lucky 88 crashed in nearly 2000. It went down in 2007 and yet today. It's about four times with the original ballots. What do you it would. It's about staying in what what are your concerns are one of the things it seems to be running up the market would be tax cuts. And affordable care repeal that correct. And it does not seen at least from what I've been in the region and you know I watch what you guys write and read what you guys print. Doesn't sound like the Republicans are on the same page in terms. At all for affordable care. That doesn't get done first eked into minutia and doesn't get his tax cuts until the Affordable Care Act repealed. That is correct and we're gonna get the Affordable Care Act. Repeal and replace plan from the Republicans this week. This supposedly. Which you have Republicans like that all bank to get rid of the entire. Total. And Republican leadership has not willing to do that. So the people to pay attention to and all that about these people. Also pay attention to Kevin Brady he is the chairman of the house Ways and Means Committee. And he's a big push on tax reform but he's gonna have to think they're about obamacare repeal and replace. And they can do that. And it looks like they're going to do that the debate as we heard from mr. miniature and by August for tax reform. And the big fight there is going to be the border adjustment act already active in yet get a and the border gets attacks of the lobbyist for The National Retail Federation are already in place of both sides are gearing up they expect the site. Before. Well I just think about if you're a congressman or senator. From Arkansas. Texas Iowa any of those southern midwestern states how the vote it's. Hey how can you vote for the border tax you UP booted out of office you'll get primary. Yeah no it could be appealing to think because the arguments for an against the border does attack very simply it's the tax on imports to Wal-Mart the teacher costs featured Leo like. Are gonna go up and in price now the argument or the B eight. Yes the price will go up but nobody give a tax cut to Wal-Mart and it's going to be stones significant that they'll be able to drop the overall prize. And absorb the tax increase on the import therefore it'll be awash meanwhile passed about a consumers. Want a bad. I. That's the that's the million dollar question Adam thank you very much for your time we sure appreciate baker atoms juror from the Fox Business Network.