Mike, Marcus Cinema and Eighteen Months discussed on The Money Hour Radio

Automatic TRANSCRIPT

Have a successful retirement i'm one of the co hosts mike peer shell now marcus cinema can be fragile when there's unbridled enthusiasm in the markets we sometimes call that market euphoria then we may get a change in some key stock market metric and it's as if everyone who was on one side of the boat runs to the other side that's what happened with investor sentiment shifted between january when shares were hitting new highs in early february when the investors turned the tables and we had a lot of selling really going on that led us into the first correction we had in about eighteen months if we look to the economy nothing much has really changed sure the winds of protectionism as in tariffs seemed to whip saw sentiment earlier in the year intentions still have it dissipated as far as these tariffs but first quarter earnings came in much better than expected and the jobless rate failed to three point eight percent in may which is getting near a record low if we're basing the outlook on the economy and profit growth all the fundamentals are looking pretty good now so we do see frankly saying starting to shift now again for the where the optimism is starting to get better and we by the way i say this tongue in cheek are personally getting more optimistic so another shift in sentiment sentiment is starting to occur with large company stocks stabilized and they're moving away from recent lows it's been even brighter for small company stocks with the key a small cap index hitting an all time high in late may also folks small companies remember don't have as much international exposure so this reduces potential damage from things like tariffs and even a rise in a dollar which tends to hurt largecap stocks and mike in our own portfolios that we were talking about earlier we still have stock exposure we definitely have exposure to small caps because we've seen that opportunity for these last night we didn't figure it out after the.

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