Why this investor says it's a great time to buy stocks, crypto
Also, a cnbc contributor star of stage screen small tv screen. Everything sylvia – you point out that that this was this pullback that weve seen if it was. If this is it, that is quite a bit lower than weve seen as an average uh for a pullback over the last decade, and then, but from that, you deduce that uh its usually about 14. You think it was an overreaction, even though it was much less than the average pullback than youre buying absolutely good morning, joe uh um yeah. You know so. Over the last few decades the average pullback has been between 13 and 14, so this 5 move isnt. So concerning to me its more of an opportunity to buy on the dip, i think yesterdays action was around evergrand. I think it was options expiry. I think it was potentially waiting to see what the fed does news around the debt ceiling and – and you know the market simply pulled back, and if i look forward, though the economy is in good shape were were growing. You know, consumer spending is high, industrial numbers, manufacturing numbers are good, were, were looking, you know forward to ending the year and the green. So i think that when you get these pullbacks and some of the top performers, there are great opportunities to buy in and that you know trillions of dollars on the sidelines that are in money markets and fixed income products that yield zero, just arent benefiting right now.
So i i think its actually a great time to buy some stocks. Do i want to get to you in just a second, but i i just got ta ask sylvia but youre not only buying the dip in stocks. You think crypto, you think bitcoin and you would recommend the weakness in crypto is a you would say, buy it at these levels yeah. I i im a very, very openly bullish on crypto, particularly on bitcoin, ethereum and nfts. You know, i think nfts are absolutely exploding. Theyre the crypto of 10 years ago, theyre going to take over the market, um bitcoin has fallen back to that 43 000 level. El salvador recently adopted it as a currency. You know, retirement plans are starting to let crypto on the platform. Trading platforms are expanding. The availability of crypto, its being used to buy things to sell things to actually exchange exchange like a currency, so um, and then you have this pending etf rule, thats out there that could potentially allow crypto and etfs, which is going to massively. I think uh affect the price to the upside, so i really like crypto here and i think its a good buy on the dip opportunity. So joe, you uh, you probably have some comments about yesterday and specifically about any change in tone. That youve noticed for the last lets say three weeks is: have we entered a different phase? Do you think? Well, i think sentiment has certainly uh adjusted, but i think september is is a calendar month that we know is void of really any positive catalyst for the market.
Joe, i think a lot of what happened yesterday has to do with the same type of conditions that existed in 2018 and, if you remember, from june of 2016, through the first week of 2018 in february, you had 20 months without a 5 correction, sound familiar thats. Exactly what we have now, what happened during that time is you had significant short volatility strategies being implemented that got unwound very quickly and i think thats why you had such intense selling? Yesterday you had a lot of the short volatility strategies, kind of being unwound, so i dont think the ever grand story is going to go away. We know they have 119 million dollars that they have due on a thursday and an interest payment. They have another 550 million do by the end of the year and then three and a half billion in the spring thats not going away but sentiment kind of gets damaged here, and i think what you do is youre. Looking for whats the next positive catalyst for the market – and i think that ultimately comes in the form of earnings that comes in earnings, but the the headwind eventually joe is is uh. The fed is, is you know less accommodative someday isnt that something to worry about? No im, okay with that joe tapering doesnt mean tightening, were at a point in the in the uh cycle, where we should be tapering uh but, as you know, as i said, thats not going to equate to tightening the federal reserve stepping back its time for them To do that, if there are some near terms headwinds its going to be what happens with the tax consequence of the legislation, private equity names yesterday really had a rough day.
Theyve been up very strong, blackstone and others, but uh the carried interest tax consequence looks a lot more onerous than we previously thought. So those are the things of significance ill. Tell you, joe today id be watching starbucks id be watching. Nike theyve been under pressure because of whats, going on with the chinese regulatory pressures and ultimately joe. It all comes back to the fangs. If the fangs are able to show the resiliency that theyve had over the summer, then the market will stabilize so sylvia and your viewer were still right in the middle of a of a long term goal thats intact. I i think so i think that were going to end the year strong and i believe that next year will be a strong year. You know to joes point. I dont think that what the fed is is going to do is going to affect the market. Much so youll have this sort of what feels like endless pile of cash with the top companies out there, particularly the fang names theres theres growth in consumer spending, retail numbers are higher than they were pre coveted at this point you know were opening up the borders Again to travel, perhaps you get a full run there and some of the cruise names airlines and hotels and um yeah. I i do think that the outlook for for all of the indices, particularly s p 500 nasdaq, is uh in the green. This year, okay, sylvia jablonski thanks joe terranova.
Thank you both shepard smith.