On this morning’s Trey Ware Show, Karl & Trey discussed the new highs in the stock market and why China needs a trade deal more than the U.S.
Trey Ware: We broke 28,000. Are you nervous about that at all, Karl?
Karl Eggerss: You know, I think some of the good news regarding the trade, regarding just a lot of good stuff going on, I think some of that’s priced in and so as I’ve been saying the last week or so, I think we could see a pause. Even if we get a trade deal kind of officially done, I could see a pause in the stock market, but the thing that happens, Trey, is every time the markets go up to these big new levels, 26,000, 27,000, 28,000, it draws more people in. It makes more people say, “You know what? Maybe I was a little too cautious, a little too bearish”, and so they buy.
Let me tell you something about this trade deal real quick. China came out with more economic news last week, more economic reports that virtually almost all of them missed what analysts were expecting. China needs a trade deal to get done now, like yesterday.
Trey Ware: One of the things about this, too, is that… I was doing some study on this over the weekend. The stock market is looking at where we’re going to be months from now, not where we are today, but where we’re going to be months from now. They’re pretty positive about this and also, based on what Jerome Powell had to say last week with employment, we’re in the best unemployment picture that we have had and unemployment numbers are going to go down even more he said. That’s all really, really good news, especially stock market is largely based on the consumer, and the consumer is in a really good position when everybody’s working.
Karl Eggerss: Well, you bring up an excellent point about the… Wall Street and investors in the stock market are always looking forward, so when you think you know something you don’t because everybody already knows it. What we’re looking for is what’s going to happen in the next few months, and what’s happened around the fact that the stock market is going up probably tells you that the economy may be actually getting better, especially in places like Europe, where it’s been struggling. We’re starting to see some small positives out of Europe. Now, things aren’t gangbusters everywhere, but again, any little improvement when things have been pretty negative, investors jump on that and that’s what we’re seeing with stocks going up right now.
Trey Ware: Very cool. Thank you, Karl. Appreciate it. Have a good week.
Karl Eggerss: You, too. Thanks, Trey.
Trey Ware: You bet. That’s Karl Eggerss from creatingricherlives.com. Check him out.