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Stocks rise after Federal Reserve meeting minutes released - YouTube
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[Applause]
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and there you have it the closing bell
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at the new york stock exchange u.s
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stocks rose today
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and shares of companies from the tech to
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finance sectors advanced the dow jones
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ended the day
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up around 500 points the nasdaq climbed
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around 2.6 while the s p 500 gained
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nearly two percent joining us now is
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greg swenson greg is a founding partner
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of merchant banking firm brig mcadam
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greg thanks for being here don't look
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now modest little winning streak what
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was what was driving things today
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well i think jim was it was really a
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relief rally you know you can argue that
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the market was oversold but i think the
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oversold argument is temporary and you
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know this is a probably of anything a
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selling opportunity because i think
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there's there's still a lot of headwinds
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in the markets and definitely in the
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real economy which which should be
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reflected in the market so you know nice
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to see it uh
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again selling opportunity if anything um
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you know the markets had a rough couple
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of months so you know there are going to
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be some moments where the algorithms
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would kick in
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but i think i think if anything you know
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stay with the same story avoid tech
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avoid long-duration assets and stick
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with you know energy health care and
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staples that you know and just ride out
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this this cycle and and i think we're
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still early in the cycle so
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you're you're doing this very nicely
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greg and we appreciate it but you're
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definitely
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throwing some cold water on anybody
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who's saying okay good i can be
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optimistic now this
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near-term and even long-term is an
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entirely unsettled picture
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yes
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you're right jim and i you know i always
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try to you know be positive and look at
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the bright side but you know the
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consumer sentiment is really negative
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right now both consumer sentiment and
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investor sentiment you know great
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investor sentiment you know picked up
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today but you know 37.1
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of consumers feel
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worse off
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versus you know 31.9
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at the peak of covid so this is a really
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negative
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you know sort of leading indicator that
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i think you know given the dependency on
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on gdp growth dependency on the us
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consumer this is a really bad sign so
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you know look i i think you know take
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advantage of the you know buying
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opportunities if there's if there's
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equities that you like and you want to
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buy them cheaply great but i i think
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this is temporary and i think there's a
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lot of there's still a lot of headwinds
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between consumer confidence and
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inflation that's going to be sticky
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so i think you know we still have some
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headwinds ahead all right well let me
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ask you if you will one more sort of
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specific data point the market
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uh continuing to digest the the federal
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reserve minutes that suggests the
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central bank could slow down rate hiking
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at some point soon maybe
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so is this going to factor into the
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overall picture of what shrewd investors
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are using to calculate what to do
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of course i mean it will factor in but
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the fed has been wrong so much over the
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last two years so i wouldn't necessarily
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take any of their
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um any of their comments too seriously
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because they've been wrong so often if
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anything they have to you know raise
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rates quickly
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i think one the other factor that people
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don't you know they pay attention to the
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to the fed funds rate but remember the
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quantitative easing is ending and if you
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look at the charts from you know 2007
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until now financial assets are are still
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at you know two and a half times gdp
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when the historical trend is one and a
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half times gdp if it if it corrects
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continues to correct you know you still
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have some serious downside to the market
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so you know there's some technical
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factors here even if the fed doesn't
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hike as much as the markets are
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anticipating you still have the end of
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qe that i think is a significant factor
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is really helpful and important insight
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greg swenson thank you so much
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great to be here thanks jim
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