CHARLES: WE HAVE BEEN TALKING
ABOUT TRUMP'S BIG TRADE DEAL.
THE INDEX CAME IN SLIGHTLY LOWER
THAN EXPECTED.
BUT OVERALL WE HAVE SEEN A
MASSIVE EXPANSION OF THE
MANUFACTURING SECTORS.
JOINING US NOW TO DISCUSS, ERIN
GIBBS.
THE IMPACT OF THIS TRADE DEAL.
LONGER TERM WHAT DOES IT MEAN?
>> I SEE IT GOOD FOR THREE
INDUSTRIES IN PARTICULAR IT,
GOOD FOR PHARMA.
I THINK IT'S GOOD FOR TRANS40s
IN THAT IT HELPS EQUALIZE COSTS
AND PUTS MORE BURDEN ON MEXICAN
TRANSPORTS.
AND THE AUTOS BECAUSE WE DO
EXPORT SO LITTLE I THINK THAT'S
BENEFICIAL FOR SOME OF THE
AUTOS.
THE BIGGER PICTURE.
ALL THE INDUSTRIES ARE PRETTY
SMALL.
THEY ARE NOT A BIG PART OF THE
S & P 500.
SO IS THAT GOING TO MAKE A
GIGANTIC IMPACT ON EARNINGS AND
REVENUES ACROSS THE BOARD?
NO.
BUT IT'S GOOD NEWS FOR THE THREE
INDUSTRIES.
>> I THINK IT'S GREAT NEWS.
THE MARKETS HAVE BEEN HELD BACK
BECAUSE OF THE TRADE CONCERNS
AND UNCERTAINTIES.
NOW THAT NAFTA IS DONE, WE MAY
GET A DEAL WITH INDIA.
WHAT I LIKE ABOUT THAT IS I
THINK IT WILL GIVE AN EXTRA
BOOST TO CONFIDENCE WHICH SHOULD
PUSH MARKETS EVEN FURTHER.
>> THIS IS HELPING CONFIDENCE,
THIS IS THE CHING AND EGG KIND
OF THING.
THE CONFIDENCE AND NOT HANGING
OVER YOU.
WILL IT MAKE A HUGE IMPACT ON
FINAL NUMBERS?
CHARLES: OUR CONFIDENCE AND
SENTIMENT NUMBERS ARE STILL
BELOW THE ALL-TIME HIGHS.
NASDAQ EVEN MORE SINCE THOSE
PEAKED.
THERE IS A TREMENDOUS AMOUNT OF
SPACE FOR AMERICANS TO BECOME
EVEN MORE OPTIMISTIC THAT I
THINK WE FORGOT WE COULD BE.
>> AROUND EARNINGS ARE AT HIGH
EVALUATION LEVELS.
CHARLES: DON'T THE BEAR MARKETS
PEAK.
>> THIS WE ARE WE THINK IT'S 18.
SO NOT THAT FAR AWAY IN WHAT WE
JUST WENT THROUGH IN JANUARY.
>> WE GOT UP TO 18.8 AND ALMOST
19.
WE ARE DEFINITELY NOT EXTREMELY
EXPENSIVE.
AND MARKETS COULD DEFINITELY GO
FORWARD HERE.
WHAT I LIKE ABOUT IT, YOU HAVE
CONTINUING CORPORATE EARNINGS
WHICH LOOK STRONG, AND UP
CONTINUE TO SEE IT LOOK STRONG.
WITH PRICES BEING HIGH BUT
CORPORATE EARNINGS BEING BETTER,
IT'S GOOD NEWS.
CHARLES: IT FEELS LIKE SOMETHING
IS ALWAYS WOBBLY.
THE NASDAQ WAS DOWN AND THE
RUSSELL IS DOWN.
YOU HAVE 83% OF THE COMPANIES
THAT HAVE GONE PUBLIC THIS YEAR
LOSING MONEY.
ANYBODY WHO LOST MONEY IN THE
DOT COM BOOM ARE SAYING RED
FLAG, RED FLAG.
>> IT'S HIGHER THAN NORMAL.
FOR OUR PORTFOLIOS WE DON'T LIKE
DOING A LOT OF IPOs BECAUSE
THE VAST MAJORITY ARE LOSING
MONEY A YEAR LATER.
BUT 83% IS HIGHER THAN AVERAGE.
IT'S AN EXTREME VALUE.
IT'S CONCERNING PUBLIC MARKETS
AREN'T THE PLACE WHERE PEOPLE
WANT TO GO TO AS MUCH.
CHARLES: SHOULD WE BE CONCERNED
ABOUT THAT OR IS IT AN
INTRIGUING SIDE BAR.
>> TECH IN GENERAL ARE TRADING
AT 19, 20 TIMES EARNINGS.
THOSE ARE THE ONES THAT ARE
EARNING.
SO THE GENERAL TAX BASE SEEMS TO
BE NOT EXTREMELY OVERVALUED.
IF YOU ARE WORRIED ABOUT IPOs,
DON'T TOUCH THEM.
CHARLES: IF WE GET A STRONG JOBS
REPORT NORTH OF 200,000.
I KNOW A LOT OF MONEY MANAGERS
ARE FLAT FOOT AND THEY HAVE TO
CATCH UP.
CAN WE BREAK OUT THIS WEEK?
A MAJOR BREAKOUT FOR A YEAR-END
RALLY.
>> IT MIGHT BE A SLIGHT
BREAKOUT.
I AM NOT EXPECTING SOMETHING
AMAZING, NO.
ESPECIALLY WHEN YOU START LOOK
AT 2019.
WE GET INTO EARNINGS SEASON, AND
2019 AND SOME OF THESE IMPACTS.
>> I DON'T KNOW IF IT'S GOING TO
BE NEXT WEEK.
BUT THE BIG THING I SEE IS $15
TRILLION IN CASH ON THE
SIDELINES THAT HAS TO GET ITS