TESLA.
THE STOCK TO THE UPSIDE.
BACK TO YOU.
ASHLEY: NICOLE PETALLIDES,
THANK YOU VERY MUCH.
ELON MUSK, TWEETING?
I CAN'T BELIEVE IT.
THANK YOU VERY MUCH.
SINCE THE DEPTH OF THE
DEBT.
THE 10-YEAR YIELD AND THE
2-YEAR YIELD VERY CLOSE.
THE SO-CALLED INVERTED YIELD
CURVE.
YIKES.
DOES THAT SUGGEST A RECESSION
ON THE HORIZON?
HAS ON THE PAST MANY TIMES.
AND IT'S BEEN ACCURATE.
DO YOU BUY INTO ANY OF THIS?
>> YEAH, IT IS CERTAINLY ONE OF
THE KEY INDICATORS, RECESSION
INDICATORS, BUT JUST, IF IT
DOES INVERT, IT DOESN'T MEAN A
RECESSION IS IMMINENT.
MEANS A YEAR AND A HALF TO TWO
YEAR LAG PERIOD, PLUS THERE ARE
OTHER INDICATORS TO PAY
ATTENTION TO AS WELL, SUCH AS
CONFIDENCE, WHICH REMAINS
ELEVATED AND EMPLOYMENT TRENDS
WHICH CERTAINLY ARE INDICATING
ANY RECESSIONARY WARNINGS AT
ALL.
NEXT YEAR TO YEAR AND A HALF
ARE STILL A VERY LOW
PROBABILITY EVENT.
>> BUT YOU KNOW, IN THIS KIND
OF MARKET ENVIRONMENT IT'S
DIFFICULT.
A LOT OF TRADING SEEMS TO BE
DONE ON SENTIMENT AS OPPOSED TO
THE FUNDAMENTALS.
WE'RE RIGHT AROUND IF NOT BELOW
THAT NUMBER WOULD BE 24,292 AND
NOW BELOW THAT.
BASED ON JITTERS WITH TRADE
TARIFFS, A WAR WITH CHINA AND
SO ON.
HOW DO YOU PLAY THAT IN THIS
MARKET?
I MEAN, WE HAD A BIG SELL-OFF
YESTERDAY.
NOW STOPPED THE BLEEDING TODAY,
BUT IT'S VERY HARD TO FIGURE
OUT WHERE WE GO FROM HERE.
MARKETS DO NOT LIKE UNCERTAINTY
IN THE TRADE TARIFFS AND REALLY
THE THREAT OF AN ESCALATION IS
WHAT THE MARKETS REALLY ARE
CONCERNED ABOUT, ARE CREATE TAG
ALMOST FORGOT WHAT A 10%
CORRECTION WAS THE LIKE BECAUSE
AND A COUPLE THIS YEAR.
CONFIDENCE THAT THE
FUNDAMENTALS REMAIN VERY
STRONG.
THE ECONOMIC BACKDROP IS
IMPROVING, WE'RE GOING TO HAVE
A 4% HANDLE IN THE SECOND
QUARTER GDP MOST LIKELY, AND
CORPORATE PROFITS ARE DOUBLE
BUY.
ASHLEY: RIGHT, SORRY TO
INTERRUPT, HANK, I THOUGHT
THAT'S WHAT'S HAPPENING TODAY.
UP 130 POINTS.
THE CLOSE.
WHY IS THAT, DO YOU THINK?
LET'S GET THROUGH FRIDAY.
LET'S SEE WHAT THE RESTRICTIONS
ON INVESTMENTS ACTUALLY MEAN,
AND HOPEFULLY THAT THIS IS JUST
A LOT OF TALKING AND INITIAL
POSTURING, IF YOU WILL, THAT
TRADE WAR.
AND ONCE THE MARKET SENSES
THAT.
>> HANK I KNOW THAT YOU LIKE
THE FINANCIAL, AND IT MAKES
SENSE, WITH INTEREST RATES WERE
RISING, THEY GET MORE MONEY BACK
ON THEIR LOANS, BUT WE HAVEN'T
SEEN THE RATES GO THAT HIGH.
WHY DO YOU LIKE THE FINANCIALS?
>> WELL, IN ADDITION TO THAT,
ASHLEY, THROW IN THE FACT THAT
ECONOMIC GROWTH IS PICKING UP
YOU'VE GOT NICE TAILWINDS A
CORRECTION IN BANK STOCKS AND
INVESTORS THIS IS A WONDERFUL
THIS WEEK.
JPMORGAN MIGHT INCREASE IT UP TO
50% GIVING IT CLOSE TO A 3%
YIELD, A VERY ATTRACTIVE
SITUATION FOR INVESTORS.
ASHLEY: ANY AREA YOU'RE AVOIDING
IN PARTICULAR, HANK?
TELECOMMUNICATIONS, THE REITS.
WE STILL THINK U.S. TREASURIES
ARE AN AREA TO AVOID NOT ENOUGH
YIELD THERE.
ASHLEY: VERY GOOD.
HANK, SORRY TO CUT YOU OFF WE'RE