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Not on the higher the Dow briefly dropping 161000 for the first time we have our.
More than 14% this year allowed.
Yes and I've not heard right behind it closing about 15100.
For the first time ever on Friday in years cheering a better than expected jobs report.
The unemployment rate at the lowest level in four years but still high historically.
So Wall Street sure firing on all cylinders but are you -- On main street hi everyone I read about -- get that bowl then can't let it dry day do it.
Bears -- we hear -- at Tobin Smith Jonas Max Ferris John Layfield along with Susan -- welcomed everybody okay John.
Stocks racing but the economy style -- Yes that is exactly the point look these are the -- strong far they have -- -- far there's obviously a disconnect.
The economy you you cannot say no one will say the last three years has been on far with the Fed pumping money was zero interest rates.
The rich get richer and the poor get -- you see that we have the highest poverty rate in the history.
How orbit about history of our country.
And -- -- seeing the market take off there is a huge disconnect between the two and that's not gonna change with the lowest labor force participation rate.
Consumer -- 30% of the economy.
Closes another some.
Good things out there right the housing market is finally found its foundation we did have a solid jobs report and we -- revisions I revisions for the last couple of months.
So is main street feeling -- humorous at all Wall Street.
Now you know it's starting to get better people have been eulogize saying this economy for months and it's just not at -- -- big word.
It's just not as bad as people are saying it you know we had a 2.5 percent GDP number for the first court which is not gangbusters but it's solid.
We've now averaging over the past six months 200000.
Every month for the past six months and again.
It's not spelled out it's not buying -- a clip it could be better and we want to be better.
But if we we're seeing some good strong sun hot spots here so Gary B and Susan basically says that there's been a funeral for this economy tomorrow -- the -- -- disconnect between Wall -- that was used -- events that.
I well first of all Brenda welcome back it's nice to have you back in the hot seat -- -- -- one.
As far as.
Is there a disconnect yes there's a disconnect between reality and what Susan is saying.
Luck you know things -- things are getting better days numbered all the -- the one number I would look at as always is the employment.
Number not that cockamamie seven and a half percent number.
The other number the U six number that accounts for people that have just given up.
That number actually went.
-- To thirteen point 6%.
So I -- -- the economy so Greg actually have less people working.
Should given the population growth and everything.
I think economies in the doldrums I think John Layfield has it right.
-- -- -- But overall -- -- percent of your assets.
In the stock market you are just cheering now look around how many people about a percent perhaps that's in the stock market.
A critical of the you know -- John made a good point because.
All these shenanigans going on in Washington and the market could.
This doesn't care at all because as -- that's got I've got uncle -- as long as the Fed keeps.
Feeding this market and -- this rally it'll keep quiet.
But the in the disconnect is no question that the economy is not recovering its 50% less or current and any other recovering pat but at the same time in the last recovers we had we had inflation we have normally to -- we're actually negative -- -- from.
People have to pay money to give money to the bat when you put 85 billion a year -- -- -- acknowledges the American defendants also Japanese is now -- they're gonna double their place right next two years we have Europe we have almost every Federal Reserve.
You know -- this might it has to go somewhere and what's intriguing is.
People know that bonds are too expensive because it can price it basically a bubble so that.
Now those same people bought bonds are now buying stocks pay -- as a replacement for bonds and that's what making this market go up.
When the economy -- so with a -- Jonas Wall Street clearly racing but what about the economy.
It's in good enough economy run and that's exactly why the market's taken up is that we're not gonna have a depression you don't need to hide -- -- negative return assets by the -- capture or short term bonds and this two and a half percent GDP is a billboard just.
Largest economy in the world that grows that -- other -- China is America's and ignore calls to go the other economies are much worse off.
You can't just sit losing money in cash your whole life so people -- look it's a modern whale broader percent now from the crash you don't really have a choice people are decided we're not gonna lose all of -- in some depression so.
New games on the -- had to pick it -- show every.
Well -- -- this rally for real I mean the bulls have to take a breather at some point they've gone so far so fast.
Oh sure they do but that traditionally the market is still -- low according to valuation.
And it should probably deserve a premium because there is safety in the US markets compared to other things are going on -- in Europe right now something the market does have legs.
Going forward the -- what is so good about it.
If yes somebody is are things good you go well there are better than they were OK things were terrible and DS might ever -- bad.
-- not really that bad they're not good they're not bad all the numbers are exactly the same -- the middle line GDP.
Employment numbers are not good they're not bad that shows that we have a very sluggish economy and I'll see anything that's gonna change that going.
So there's a big difference here.
The SP 500 which the 500 largest stocks the last time they were this high they had about fifty -- four dollars of combined earnings for all those companies on earnings per share right now they're at a 106 dollars for the year so we have twice more than doubles twice the earnings.
It basically at the same level that -- at record highs and 007 so clearly if that was important you know would 2002 so clearly.
We have more underpinnings and in this market the problem is all that prosperity -- come with revenues actually not going up over the last.
-- twelve months is actually down 4% so we're getting more earnings were not get the revenues.
Well we're also saying we're also seeing productivity gains and a -- current -- right so you're seeing I read these are.
In some cases are increasing -- profits are increasing but they're not hiring more people so there is a little bit of that disconnect that candy was talking up -- Tierney who -- it's -- market keeps going up.
I tend to act and I'm -- -- -- it would Wall Street in the -- -- I don't -- market keeps going up through years of what happens with the economy.
Can't keep blowing -- at -- Dolly targeting money.
That thirteen point 6% and most people don't really unless -- have a lot of money in the 41 K.
Brenda we have about half this country that has no connection to the market at all.
-- -- to inside the beltway people and you know inside the financial community it's rallied from a my -- fifteen K -- speaking to the to the average person out there -- -- that thirteen 14% that don't have jobs and care the market was up 25000.
Right very good point on it investors -- make.
And a lot of money Jonas -- workers.
I don't know abide by that part because of red hot market will create jobs and it's also happened in the ninety's at some point -- -- -- didn't keep going up to your point to doubt -- thousand point out doesn't.
At some point one as a recent so easy for -- to come on -- they're going the higher just because of them just because a hive stock valuations we saw that in the nineties.
Is that sustainable -- crash shore but.
Is it good for hiring people yes -- on directly -- -- invest in the market but you work -- these companies and their stocks do better they have more money to spend and the warning to fire people etc.
so does everybody benefits almost -- Mark Patterson companies have more money to spend -- their stock price -- -- stock -- -- -- and -- -- -- all at once that once companies across the -- you can raise money is a startup company knowing that you can go public -- higher valuation later but I -- Yeah I tell -- -- I'm sure is now.
I understand but stocks and stuff like arguing these stock offering to all my -- -- stock prices up 25% this month let's do another stock offering.
Far and few between I don't think there's much of a connect.
There haven't been part of it and then why is it raises -- not a big Tunisia to raise money to start is why so -- -- raise money tonight is because they could go public into a NASDAQ 5000 situations I -- not the one exception the Internet bubble that created jobs and one -- well and give you that what I can't -- -- -- -- -- myself -- -- can't -- -- -- started -- -- and and -- -- there is about the fact of course because the S&P 500 up to 16100 that's enough for a one case people -- grounded out Zoe welcome back but look at that look at Holmes in the last thirty days up -- your -- stock prices home prices do create economic prosperity for some not all.
-- yeah god you're here you sound like the administration -- you're turning your jobs plan is -- these companies have a lot of money -- -- thought process that we need to hire people who don't need it doesn't work okay.
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