Oct 11, 2018|
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Stock tips stuck with the Barry Armstrong and shuts Ghana it's the financial exchange on the financial exchange radio network. Well a lot of folks are still trying to sort out exactly what happened yesterday in here to help us. Unwind some of the different threads that contributed to it is Kristina Parsons medalists from Fox Business Christina thanks for joining us today. Well great to have me here you know hopefully we can not keep this up in the future let's let's talk a little bit about interest rates I know that you know from my perspective. I see a pretty clearly their simply because we've had you know three data points in the last week. Leading to suggestions that interest rates are gonna continue to move up we've seen them move up in the short term. Is that that the prevailing wisdom that we're hearing as far as what caused this yesterday. Yeah that's actually attempt at last week and PayPal with the chairman of the Fed both and I. He's relatively young talk a wintry mix them at the New York Stock Exchange right now he was saying everybody really reading into his toy the word then meet. Chairman said that the market is doing remarkably well remarkably strong and actually the word that some investors are interpreting. Interpreting both word says. We're going to aggressively go tighter at a factory and you statement comes interest rates so there's the fear that interest rates are going to be climbing. Higher over the next little while we could see definitely one hike this year and then three more next year. The question is is that the right move. And I think that's where we need to talk about what we need not credit that you have. Yet cute situation increasing interest rates because they didn't store quite well but look at what the market been propped up on sheet debt. You have deficit in the trillion dollars consumer debt super hi every caring that went into street I'm tired that's gonna really hurt them and hurt growth. Christina what are the things that I've been focused on over the course this year is the fact it was specifically with regards to higher interest rates. Foreign buyers of US treasuries have effectively dried out on a net basis over the last couple years meaning that as we increase our deficits we've got to finance that domestically. What does that mean if rates continue to move up as far as how much money gets sucked away from. Domestic investment and instead has to go to financing our debt. That's a great question especially because you had an option I think it was just yesterday and and when you're putting more of these pressures on the market that I didn't think that they're tightening and then not going to be by. Who's going to be buying up these treasury bond that we could step in to get take over that money that bad economy your doesn't volunteer more of the debt more deficit. And I don't know the exact Anthony is that like who's gonna be buying it we didn't see very many at many buyers as expected. Which is why you're seeing it yields continue to rise money tenure that that three point one where it hit a high at street three point point 4%. I don't actually have answers to how we're gonna on that but that is the point of concern which is why the market sell off yesterday. And then in the previous stupid and it is really just. Optimist and people are realizing hey I pick my money out of the market right now just in case things go bad. Don't want to hedge fund guys here at that you're talking to meet three million bucks yesterday. Because they were taking advantage of other put options that they're hedging their bet beaten the money off of that. But they believe everything the market in climb higher within the next the old days. Christiane it's Peter about secure certain what's the mood like on the floor the Amway a seat today compared to yesterday I'm a believer that this stock market is it. Little bit of a crazy animal the periodically freaks out and I've wondered what it feels like today. I'm I'm literally what I feel right now everybody just chatting with each other sitting in the chairs there's no real and running around and people on the phone call. Talk about. These scary October a fact that an acute and he talked about that I had the great crash 901987. Black Monday 820%. Down into one that's in and then back in 1929. During the Great Depression but I think. The guys that I am talking and it credit you around here they don't seem and that concerns because the earnings season and they still think that there's still some more room to grow. And that the growth is going to continue I think in the long term. And that's where the hedging them then. That's the part where you need to start worrying because the growth it into street circuit I am I'd fast and it is expected with the Fed. Then you could see growth are especially because so many consumers and we corporations. Have so much. Christine as far as you know how long this goes on when you have a daylight yesterday to me. It suggests that investors don't really know how to value this market otherwise you would have seen as big of a swing. How long are most people expecting it's gonna take before. This market kinda gets back to normal in the spring when we saw something similar it was about three months before that volatility kind of left the system. What kind of expectations are we seeing out there. And that I mean I can predict and a psychic predicted throughout the crystal ball so far it came in the past they've been incorrect the out. Aimed at the thing that I I don't think overly optimistic in my opinion lot. I was here with the thought last week as reporting here on Thursday it you started the scene. Everything pick no big deal it's gonna pop up and that it consent Katrina added not that big deal it's gonna I'm hiring hit the nine and a half year expansion and being we're. Further growth look at the bit tight labor market seems there's still going high wage inflation is not as high that she could or should be. There's still room to grow. However batsman dean could go back when you are not prepared and think that is the concern that I have a timeframe but. Everybody is. Still very optimistic. Arguable Christina we appreciate you joining us we've got to let you go now but thanks for the information and we'll catch up with as soon. Absolutely that is Christina parson novelist from Fox Business talking about. The state of the market at the moment is also dovetails nicely with our. Question of the day which is up right now on financial exchange show dot com. And the poll question pretty straightforward how worried are you about the market sell off what is your individual investor sentiment. We have three options here they are very worried. World's ending slightly war. The world and not worried at all the world is not and so. Vote in our poll question of the day on financial exchange show dot com. I'm not gonna disclose allies feel I want askew votes because yesterday worked in the exact opposite directions over document do that again. But please do vote at financial exchange showdown commonly does know. What you think about. This market be worried are you slightly worried there hey I've seen this before I'm not worried at all will check in with that in just a little. Bits I would nacco for an anti chuck trade. If it's been known to work occasionally it's it's been known to work occasionally.