Jan 10, 2019|
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
It's our daily poll question had financial exchange showed Doug John. Vote your conscience there heard just vote go to financial exchange O Doug come and test away. Stuff. Story is now as he does every Thursday is Adam Johnson from bullseye brief. He can get all of his stock picks every week that it goes right on bulls ivory dot com to make sure you head over there and sign up and Adam. Thanks for joining us how are you. They could be with you guys forgive me by the way but suddenly got fraud in my program still look head cold that you know. Is this season so we're with the battle. You sound got to play hurt you yes you have to play hurt out of that's that's the you know not a believer like my guide and Alabama left on what it is that you. Not not good not good. Let's let's talk about where we stand in in markets right now we have the S&P about 10% off its lows from my Christmas Eve. I'm curious what your thoughts are let's talk first just kind of short term. How much further do you think this thing can rally you know over the next couple weeks. Well I took very good about where we are in the market right now Erik I have to tell you but it what I thought this morning was really symptomatic of kind of what's been happening behind the scene. You know I wake up that literally wore clock because you know both stuffed up I check my Bloomberg in the lead to worry is. Market cracked is that rally over and it app when I was thinking oh my gosh where future outlook for record. We don't have five yup you're great you know we've gotten all so. I don't know we just don't cut them all and old and you know defense looked they bed trying to aid because that would at least eight that. Well you know it it it is bill market aren't allowed that it. Correct well market corrected now the re inflating. And the reality of the very strong economy okay maybe not as strong as it was in in July but still in there strong economy. That's what ultimately driving earnings. Of fifty to 20% so I feel very good about with the market. And there is that I like having you on every week is you provide a healthy dose of optimism to balance out my pessimism and so I'm gonna take this is an opportunity. I'm gonna tell you all the things that are worrying me right now today just with mark because the whole list to be way too long. But I want it is see if you can put some of these fears to bed at least. We're starting to see companies in addition to apple and Samsung in the last week but other companies lowering guidance even starting to cut jobs or give me a list just from today. Ford internationally saying they're gonna be downsizing jaguar saying their downsizing. Macy's cutting earnings American cutting earnings delta cutting earnings. Make me feel better. First of all the former project or order it rejects the current. Fair point a to point your right. At at this point by the way and I don't electable on the oval legally and on who will be buried at apple corps. It's like you know and Rupert Walken that we whatever that. Ford has been struggling with European operations for a long time I'm long word on and kind of break even rate on and on your appetite at all. I'm I'm long board because what you're doing with elected you okay they'll. The European restructuring by its part of the deal. May see yet terrible number I you'd be wrong make he's a bull put it behind me he's in the scene because at that point the value real state. It's worth more then where are compelled cheap. But that kind of a broken branch and the other retailers were a little bit. Okay the bar is transportation. I hear is that the disappointment American and bill it's not but at the numbers everybody thought. I don't know what to make of that because it's been reduced spending money like it's going I'll write the numbers were still good it just. They weren't as good as we thought bill OK well I'll grant you that went off topic we wanted to buy out of ring use. On the prize in I don't know one term but whatever I'm surprised by the weakness on. Adam here's something that I do feel good about not so much in terms of what what it means cyst for society but just in terms of what it means for stocks. My take is that based on what we heard from Jerome Powell last Friday. The Fed is done almost a complete 180 at this point. And I think has a possibility of really back stopping stocks in the near future do you feel the same way. Yeah I mean in in no uncertain terms Powell case. Okay he totally and he based you know back in October that there is indeed very strong market in quote. There. He said I think the economy. In and continued to be banned for very long period you might even that a limited with court. Don't think that the battle. And then you know trumpet the that he can't recreate that with very big pain went away you know your strict about inaugurating ready. You're but it liquidity out of the system up for crying out loud there's still so what what audience that the rates are still the old world democratic aide. But I will also would let. That the market you know. Like low rate you know it like that sugar by any heat at getting at it even a little bit it's very helped the it could write portfolio I mean you know I am upbeat about like well what the market up I'm up about 10% since the December 24 well. So you know it will look low rates are good for stopped but I'm not sure there helping bunker out of work. I tend to share the exact same view Adam we've got to run but thanks for joining us and catch up next week. Barrel and were outstanding that's Adam Johnson from bull's eye briefed dot com remember he posts is picks up there every weekend so. Get there before then so you can see what he is talking about. Everybody loves lower rates except for the guy that wants to buy a CD is local bank great. Yeah it's easy. You know it that there's always a trade off you know if if the guiding wants a CD can't get his rate hey at least the guy get the mortgage can get his him vice Versa when they go up so it's. There's always winners and losers unfortunately the problem of low rates lot of people on fixed incomes tend to get hurt the most.