MOSTLY AND, SADLY --
OVERTHINKING, AND SADLY, A LOT
OF OPPORTUNITIES ARE MISSED.
LET’S FIND OUT WHAT OUR MARKET
PROS ARE THINKING, CEO EDDIE
GABOR, NEW STREET ADVISERS AND
CEO AND CIO AND GIBBS WEALTH
MANAGEMENT PRESIDENT AARON
GIBBS.
FIRST, WE’VE GOT TO START WITH
THIS JANET YELLEN NEWS.
FROM THE MOMENT IT WAS ANNOUNCED
YESTERDAY AROUND 2:50, THEN E IT
WAS SORT OF CONFIRMED, THE
MARKET HAS BEEN UP.
AND WHY NOT?
WHEN SHE WAS THE HEAD OF THE
FEDERAL RESERVE, THE S&P.
RALLY ARED 59%.
AND THE ONLY TIME SHE REALLY RAN
AFOUL OF WALL STREET WAS THAT
LOAN RATE HIKE IN 2015.
SHE HELD OFF AND DIDN’T HIKE
AGAIN UNTIL AFTER THE ELECTION
IN 2016.
IT’S CLEAR WALL STREET LOVES
YELLEN AT THE TREASURY.
SO, AARON, WHAT IS IT ABOUT
JANET YELLEN THAT WALL STREET IS
SO EXCITED ABOUT?
>> WELL, FOR ONE, WE’RE VERY
FAMILIAR WITH HER, YOU KNOW?
IT’S SOMEONE WITH WE KNOW.
CHARLES: YOU KNOW ELIZABETH
WARREN.
[LAUGHTER]
>> THIS IS TRUE.
ADMITTEDLY, YOU’RE RIGHT.
I THINK WE HAVE VERY FOND
MEMORIES OF THE YELLEN YEARS.
NO, I THINK IT’S BECAUSE WE KNOW
THAT SHE’S VERY DATA-DRIVEN,
VERY THOUGHTFUL, SHE’S NOT GOING
TO COME OUT WITH ANYTHING
EXTREME.
SO IT’S SOMETHING THAT YOU HAVE
AN IDEA THAT SHE’S REALLY GOING
TO WORK TOWARDS THE HEALTH OF
THE MARKETS, AND I THINK THAT’S
REALLY WHAT THE MARKET IS
SAYING, THAT SHE’S A SUPPORTER
OF THE U.S. MARKETS.
CHARLES: EDDIE, I THINK SOME
WOULD SAY MONEY PRINTING, MONEY
PRINTING, MONEY PRINTING, AND
WHEN YOU’RE NOT SURE WHAT TO DO,
MORE MONEY PROHIBITING.
WALL STREET LOVES THAT, DON’T
THEY?
>> THEY SURE DO.
AND YOU HAVE SOMEONE, THE MARKET
FEELS LIKE WE’RE GOING TO
CONTINUE THIS PATH VERSUS
SOMEONE WHO’S GOING TO COME IN
AND TIGHTEN UP MONETARY POLICY.
SHE’S PROVEN HERSELF WHEN SHE
WAS THE FED CHAIR THAT SHE’S
PRETTY DOVISH AND, AGAIN, THE
MARKET LOVES THAT.
CHARLES: ALL RIGHT.
WELL, IT’S MOVING THE MARKET,
CERTAINLY, AND THE BROAD MARKET,
BY THE WAY, IS GOING TO GET SOME
TONGUES WAGGING ABOUT IRRATIONAL
EXUBERANCE, BUT I THINK IT’S TOO
EARLY FOR THAT.
HOWEVER, THE MOVES IN ELECTRIC
VEHICLES, THOSE FUEL CELL
STOCKS, THEY HAVE BEEN THE VERY
DEFINITION OF PARABOLIC.
THEY ALREADY WENT TO ORBIT, AND
YESTERDAY -- EDDIE, I WANT TO GO
BACK TO YOU BECAUSE TESLA IS A
NAME YOU’VE MENTIONED ON THIS
SHOW.
DO YOU STILL LIKE IT?
DO YOU LIKE OTHERS IN THIS
SPACE?
>> I STILL LOVE TESLA.
I’M STICKING WITH TESLA.
I FEEL LIKE THEY’RE BEST OF
BREED.
I WILL SAY FOR DAY TRADE ORS AND
YOUNG INVESTORS, I THINK IF
YOU’VE GOT A 90% MOVE IN SOME OF
THESE IN A MONTH, TAKE SOME
MONEY OFF THE TABLE, PLAY WITH
HOUSE MONEY AND WAIT TO COME
BACK IN.
BUT I DO THINK TESLA LONG TERM
IS GOING TO REWARD INVESTORS.
CHARLES: YEAH.
I HAD A STOCK YESTERDAY ON MY
TRADING SERVICE WENT UP 234%
YESTERDAY, DPW.
I MEAN, WE WERE OUT OF IT BEFORE
THE DAY WAS OVER.
DELANO, I KNOW YOU’VE GOT CLIENT
S IN NIO, I HATE TO ADMIT
IT, I GOT OUT.
HOW MUCH MORE UPSIDE IS THERE?
>> I THINK THERE’S STILL ROOM ON
THE UPSIDE FOR CERTAIN CLIENTS
THAT IT MAKES SENSE.
WE’RE LOOKING AT THE GROWTH IN
THOSE INDUSTRIES, THAT’S THE
BIGGEST THING.
YOUNGER INVESTORS, CERTAINLY,
ARE LOOKING AT THE GROWTH IN
THOSE INDUSTRIES AND HOW THEY
CAN REALLY RESHAPE THINGS GOING
FORWARD.
YOU HAD NIO, WHAT THE CHINESE
GOVERNMENT’S LOOKING TO DO AS
FAR AS I ECO-FRIENDLY VEHICLES
IN 2035, I THINK THERE’S STILL
ROOM TO THE UPSIDE IN THAT PLAY.
CHARLES: IT’S JUST ABSOLUTELY
AMAZING BECAUSE GLOBALLY, AND
PARTICULARLY IN AMERICA, THE
ACTUAL ADOPTION OF THESE
VEHICLES TO THE POINT WHERE YOU
MIGHT JUSTIFY THESE MOVES SEEMS
FAR AWAY.
BUT I DO WANT TO BRING UP ELON
MUSK.
YOU KNOW, NEWS FLASH, FOLKS,
SECOND RUSHEST PERSON ON THE
PLANET, CERTAINLY -- RICHEST
PERSON ON THE PLANET.
HE GOT THERE WITH TESLA’S STOCK,
AND I THINK IT’S IMPORTANT TO
NOTE THAT ANYONE WATCHING THIS
SHOW COULD HAVE OWNED THIS
STOCK.
I’VE MENTIONED TESLA ON THIS
NETWORK AT $40 A SHARE.
AND I KNOW SO MANY PEOPLE WHO
HAVE BEEN SITTING ON THE FENCE,
EVEN MORE ALWAYS COMPLAINING
ABOUT WEALTH DISPARITIES IN THIS
COUNTRY.
YOU’VE GOT TO REALIZE IT’S THE
STOCK MARKET, ANYONE AND
EVERYONE SHOULD, IN MY MIND,
INVEST.
YOU KNOW, THE PEOPLE WHO ARE
TAKING RISKS ARE GETTING THE BIG
REWARDS, AND I JUST WANTED TO
SAY THAT BECAUSE STOP
COMPLAINING ABOUT EVERYONE ELSE
AND GET IN THE GAME YOURSELF.
BY THE WAY, THESE SO-CALLED
REOPENING TRADES, I CALL THEM
NORMALIZATION TRADES, ARE
SIZZLING AS WELL.
AND THIS TIME I’VE GOT TO TELL
YOU, NOTHING FEELS TEMPORARY
LIKE PEOPLE GOING BACK AND
FORTH.
ERIN, YOU KNOW, BEFORE YOU GET
IN THESE AIRLINES FOR A COUPLE
DAYS AND TRADE, THE CRUISE
LINERS, BUT NOW IT FEELS LIKE
YOU MIGHT WANT TO BE IN THESE
STOCKS AS LONG-TERM IDEAS, NOTES
INLY TRADES.
>> YEAH.
NOVEMBER SO FAR THIS MONTH’S
DATE, NOVEMBER HAS BEEN THE
BIGGEST REVERSAL MONTH MEANING
THE LAGGARDS, ALL THE LOSERS
FROM THE EARLIER PART OF THIS
YEAR ARE NOW THE WINNERS THIS
MONTH.
AND THIS IS THE BIGGEST REVERSAL
WE’VE SEEN SINCE 2009, YOU KNOW,
COMING OFF THE 2008 RECESSION.
SO THIS IS A REAL TREND AND A
BIG DIFFERENCE.
AND IT’S NOT JUST YOUR AIRLINES.
ENERGY’S BEEN ONE OF THE BIGGEST
WINNERS FOR NOVEMBER.
BUT ALSO I’D SAY LOOK DOWN
ACROSS THE MARKET CAP SPECTRUM.
SMALL CAPS HAVE ALMOST HAD A
DOUBLE THE PACE FOR THE S&P
LARGE CAPS FOR NOVEMBER MONTH TO
DAUT.
SO THAT’S ANOTHER AREA THAT
PEOPLE CAN REALLY LOOK AT AND
GET INTO.
CHARLES: YEAH.
>> AND THAT’S SOMETHING THAT
PROBABLY IS GOING TO LAST MUCH
LONGER THAN JUST NOVEMBER.
CHARLES: I LOVE THE RUSSELL 2000
MOVE THERE.
THE TOP STOCKS THERE, OF COURSE,
PENN GAMING, CAESAR’S IS IN
THERE, CHURCHILL DOWNS IS PART
OF THAT.
TO ME, IF YOU WANT TO SAY WE’RE
THE HOT NICHES IN THIS COUNTRY,
IT MIGHT BE A BETTER
REPRESENTATIVE THAN THE OTHER
INDICES.
DELANO, HOW ARE YOU FEELING
ABOUT THIS, SOME OF THESE OTHER
AREAS?
IS THIS A TRADE OR CAN YOU
REALLY START TO BUILD POSITIONS
INTO HOTELS, AIRLINES AND THE
CRUISE SHIPS?
>> YEAH, I THINK FOR CLIENTS
I’VE BEEN SPREADING AND MAKING
SURE TO HEDGE WITH OUR VALUE AND
CYCLICAL STOCKS MAINLY THROUGH E
TFs.
BUT AS YOU MENTIONED, IF YOU
HAVE RETAIL LIKE DOLLAR TREE
WHICH REPORTED EARNINGS EARLIER
THIS MORNING AND DID REALLY
WELL, I’M LOOKING FOR THAT
ESSENTIAL NATURE IN THE BUSINESS
AS WELL AS HAVING A STRONG
RETAIL STRATEGY IF WE’RE REALLY
GOING TO EXPOSE TO A SINGLE
NAME.
BUT THE TREND IS INCREASING AND
I THINK, YOU KNOW, IF YOU’RE
SMART, YOU’RE GOING TO HAVE TO
BE MAKING SURE YOU HAVE
POSITIONS CAREFULLY IN YOUR
PORTFOLIO.
BUT THAT’S SOMETHING I’M
DEFINITELY LOOKING FOR AND
ADDING TO FOR CLIENTS.
CHARLES: OF COURSE ERIN JUST
MENTIONED THE OIL NAMES, ENERGY
PATCH BEFORE TODAY THE OIL
SECTOR, ENERGY UP 37%.
A LOT OF THESE BROKEN DOWN NAMES
ARE REALLY STARTING TO LOOK A
LOT MORE COMPELLING.
IT’S NOT JUST THE OIL COMPANY
STOCKS, BUT A WHOLE LOT OF OTHER
NICHES IN THIS MARKET.
SO ON THAT NOTE, EDDIE, ARE YOU
LOOKING OUTSIDE?
I MEAN, I LOOKED TODAY TO
MATERIAL NAMES, PHENOMENAL.
THE 3-D PRINTING STOCK LOOKED
PHENOMENAL.
IT JUST FEELS LIKE BROKEN DOWN
LAWYERS WHERE YOU WANT TO SORT
OF -- AREAS WHERE YOU WANT TO
SORT OF SUFT THROUGH THE RUBBLE
AND FIND THE ARTICLES.
>> I DO.
A FEW WEEKS AGO I THOUGHT IT WAS
A GOOD TIME TO GET INTO BOEING.
I LIKED THE AEROSPACE, THAT’S
BEEN BEATEN DOWN THIS YEAR.
I AGREE WITH SMALL APS.
I THINK THE -- CAPS.
I THINK THE RUSSELL WILL BE THE
BEST PERFORMING INDEX 12 THE
MONTHS OUT.
AND I LOVE THE TRAVEL STOCKS.
THERE’S SO MUCH PENT-UP DEMAND
THAT I THINK THE SECOND HALF OF
NEXT YEAR WE WILL PROBABLY HAVE
RECORD AMOUNTS OF MONEY SPENT ON
TRAVEL.
SO I THINK IF YOU HAVE THE RISK
TOLERANCE, BUY THOSE STOCKS,
HOLD ON TO ’EM FOR A YEAR AND
GET HANDSOMELY REWARDED FOR THE
RISK THAT YOU TOOK.
CHARLES: I KNOW I’M GOING TO
EVERY CONCERT IN THE TRISTATE
AREA, I DON’T CARE THE GENRE OF
MUSIC, AND THEN I’M GOING TO GET
ON A PLANE, ERIN, AND GO
SOMEWHERE AND WATCH THE SAME
SHOW OVER.
REAL QUICK BEFORE WE WRAP UP
THOUGH, WE’RE ALL EXCITED --
EVERYONE SHOULD BE, I THINK --
BUT, ERIN, WHAT’S THE NUMBER ONE
CONCERN NEAR TERM THAT MAYBE IS
BEING OVERLOOKED RIGHT NOW?
>> WELL, I’D SAY, CERTAINLY,
SOME OF THE RISKS THAT WE HAVE
IN CONCENTRATION, SOME OF THE
REGULATORY ISSUES THAT WE COULD
BE FACING EVEN POST-PANDEMIC.
AND THEN, OF COURSE, ANY TYPE OF
HICCUP.
IF WE SEE AN ISSUE WITH GETTING
THE VACCINE OUT TO PEOPLE, THAT
COULD DELAY IT.
BUT I THINK VERY HAPPY ABOUT THE
MEDICAL RESPONSES AND THE
OVERALL ECONOMIC RECOVERY, SO I
THINK IT’S REALLY ABOUT HOW LONG
IS THE RECOVERY GOING TO TAKE
AND HOW LONG --
CHARLES: RIGHT, RIGHT.
>> -- IS THE HEIGHTENED
UNEMPLOYMENT GOING TO TAKE.
OVERALL, WE THINK WE’RE GOING TO
BE OUT OF THE WOODS BY THE THIRD
QUARTER.
CHARLES: I’VE GOT RICK SCOTT
COMING UP, SENATOR SCOTT WILL
TALK ABOUT THE FISCAL PACKAGE,