China, Bill Anderson, President Donald Trump discussed on Best Stocks Now
Hour with professional money manager, Bill Anderson of gunnison capital management. It's good to get back a full week of work. What tell you what you know with the light volume in the market that seems to. Amplify the moves to the upside? And to the downside just witnessed last Thursday. And last Friday when on Thursday was about as gloomy is. It could get maybe that was the final capitulation, but on Thursday of last week, the Dow was down six hundred and sixty points, and it was just a just a flawed or just a massacre on that same day on Thursday. The NASDAQ was down two hundred and two points on a day like that. You're very glad that you're pretty much neutral on the market. And then you follow up on Friday after a jobs report that was better than expected and kind of a comments by the fed that I'm sure we're engineered to calm the markets. The Dow was up seven hundred forty six on Friday, and the NASDAQ was up two hundred and seventy five points on Friday on a day like that. You're wishing you were all in. But of course, you wouldn't have wished you were all in on Thursday. If you add the two days up, the Dow was up eighty six points during that two day period of time, and the NASDAQ was up seventy three points. Maybe that's a better way to look at how we ended the week. I begin a new year. I have about seventy eight percent sitting on the sidelines in cash protecting just in case. But at the same time looking for opportunities this week, and I think there will be a lot of opportunities that are going to emerge here. Very very soon. Now, what did it on Friday? Well, the payroll report the jobs report came in at three hundred and twelve thousand we were only expecting one hundred and seventy eight thousand that was a huge number initially that scared the market thinking well now the fed will act for sure to raise interest rates, but then along came. Jerome Powell who was the Grinch stole Christmas this any clause rally, and he came in with very calming words about the market. He said that let's see if we can get his, quote, we are prepared to adjust policy quickly and flexibly. And something that he may have officially thrown in the towel on this current rate hike cycle and instead backing off and being very very flexible. I think the word patient was thrown in there somewhere along the way that also calm the market. But that was the big move. You saw on Friday. The NASDAQ up three point two percent s&p up two and a half percent on Friday. But of course, just the day before the day before in whiplash like action, anybody know, a good chiropractor. The Dow was down six hundred sixty on Thursday. In two zero two on the NASDAQ on Thursday. That's why I'll be wearing a neck break soon here watching these markets. Well, let's see what else do we have. Well, you know, what else you could draw from that jobs report with that jobs report? It's hard to make a recession a case for a recession. Just around the corner. The yield curve has not inverted. In fact, it ended the week with seventeen basis points between the two year and the ten year and generally speaking when and if the yield curve does in Vert, well, generally, it's many months after that that we finally see a recession. But having said that the market is forward-looking the market will start going down way in advance of a recession. It won't wait until the numbers are official. We're reserve. Session. The market will have gone down a lot by that time. So that's why we have to be forward looking on all of this. And let's not forget it was just Thursday that we have that horrible IS manufacturer report between that and apple that really put the market in a tailspin on Thursday. So we'll the real market, please stand up. Remember, the old show, you try to guess, which guy was the was the juggler at the circus. You know, they'd have three guys tell their story. I'm the juggler, blah, blah, blah behind it. And then they would say what the wheel one please stand up. And of course, the other two would always fool their share this what this market is doing. Well, the real market, please stand up. So we can do some serious investing again. Well once again. That jobs report of three hundred twelve thousand in December was well above expectations of a gain of one hundred and eighty and that obviously is data that is not consistent with the recession in two thousand nineteen and it just may be that many investors to pessimistic to pessimistic as we ended two thousand eighteen because there sure was a lot of pessimism to end two thousand in nineteen. There does seem to be some kind of a correlation between oil and the markets. You got oil prices up today, you've got at least the NASDAQ up today while is a leading indicator and a current indicator of the global economy, and I think oil is looking at hopes oil is also following the US China trade talks that are going. On. In fact, they flew out your last night, our trade delegation. This the B team President Donald Trump and president Gijon pinger considering meeting in the first half of two thousand and nineteen. If progress is made with the trade talks that begin tomorrow. In beijing. Well that kind of putting things on hold a little bit. It seems like I thought March I was a hard deadline. Trump is also considering meeting with Chinese president Wang Keyshawn at the annual World Economic Forum in Davos at the end of this month. Okay. So maybe that moves things up a little bit. But suffice it to say that the US trade team the B team flew out last night for another round of talks with China. And that continues to hang over the head of the markets. It's brought down oil prices considerably beside the old supply demand equation. There's also a lot of fear about global growth with this trade war with this nasty trade were taking place. And we also have of course, the market worried about a global recession. Well, it was also a big day for the emerging markets on Friday. Now, they had a terrible year in two thousand and eighteen I would say at least towards the end of the year, they stabilized quite a bit. The emerging markets were up almost three and a half three and a half percent on Friday. Of course, a big part of the emerging markets, China what's going to happen in China as the US team. Beijing. This is Bill from the best stocks now. Radio hour. We're all.