FED, Chris Harvey, Wells Fargo discussed on CNBC's Fast Money
What does it tell you all these assets going? It says to me that the fed is looking at inflation, and all the wrong places inflation is right in front of your face, and it's manifesting itself, and all these let me throw another question out there to be K. Let's. Seven minutes to answer. Are you negative or are you just afraid to be positive because of all of the risk factors that around I would say that I am? I'm cautious. Because we've had such a run. We have been in a trading range for a year. It's been a big trading range. We're at the top of the trading range. There are signs out there that things are not as great as maybe and one percent away from the higher at all time, highs suggest. So what I'm saying is I'm cautious. I don't have a lot of equity exposure at this point in time. I don't think you need to I think you can buy puts if you wanna hold onto your stocks. But I think you need there certain times, and in this market, what we've had for the last year, there's certain times, you just need to be a little bit cautious. That's, that's what I would answer the question. Conscious like eight tugs. I'll feel about this. How about structurally cautious but tactically optimistic and this now we're like three times in the last week, and I'm gonna keep saying. The bottom line. Here's you have a handful of dynamics for market which which is at all time highs. Okay. And I realize that people don't like the quality of what's at all time highs. But there are some of the greatest companies in the world that right now are at all time highs. And these are companies that when markets were also at a low growth standard. We're not we're not doing I mean coca underperform for years when we in twenty fourteen twenty fifteen and we were kind of going through this fed induced, NRP environment, and people are wondering what happened to these great companies, these great companies are now actually chugging along at all cylinders. They look very healthy three casual generation, etc. Etc. So I mean, I think you just have to take the market, that is with you and not get carried away, say, everything is perfect, because there are a lot of issues out there. But, but the reality is right from perfect. I think what it's consumer spending. I think it's closer to bed than perfect. But that's what makes markets, but you could probably answer that, question, a lot more succinctly and we go. Guy, Chris Harvey, who might as well, one of the four the forth manning, brother. Do you want to do you want to enjoy them? I mean, welcome Chris Harvey. I won't even read that Wells Fargo securities what he's strategy is he good or is he good. He's great. He's outstanding. All right. You heard it. I mean I feel more negatively than than positive feelings about the market on the desk. What about you? All right. So there's a couple things a couple of litmus test. We looked at. So what has low volatility Dunston September low volatility outperformed by thirteen fourteen percent. Would it do in two thousand eight it outperformed by fourteen percent. Second litmus test. Let's go back to the summer two thousand seven. Let's compare that to fourth quarter of eighteen what happens six points out from the summer two thousand seven equity market was down three percent. The fed made emergency cut in. Oh, by the way, Bear Stearns was about to go belly up. Now what are we looking at? We're looking at the SNP up twenty five percent. We're looking at the fed, perhaps, cutting and, oh, by the way, the Bank stress tests, just came through and Bank balance sheets are quite quite strong. Right. But we're not trying to acquire whether the banking system is stronger today than it wasn't. Oh, seven. What, what, what are we going to have to do with being is a lot of people were in a better? We're in a better situation than we were seven and a lot of people are saying, recession, recession recession, we've not seen those telltale signs now does the banks are better capitalized. I mean there are other songs that you could. So banks are better. Capitalize credit spreads tightening. And yes is is rolling over new orders rolling over payrolls, don't look great..