TO THE MAJOR AVERAGES JOINING
US NOW IS DAVID NELSON WAS A
PORTFOLIO MANAGER OF THE
HENNESSY LARGE CAP
FINANCIAL FUN JOINING US ON THE
DAY DAVID GREAT TO HAVE YOU
HERE WITH AFTER BEGINNING THE
WEEK WITH 2 DAYS IN THE RED
MAJOR MARKETS REBOUND TODAY
AND THE DAY NEAR SESSION HIGHS
YOUR BIGGEST A WAYS FROM
TODAY'S ACTIVITY WHAT I DID.
>> I THINK IT YOU KNOW PELOTON
AND NETFLIX IS A BROADER MOVE
HIGHER AGAIN AND WE'VE SEEN
THAT.
DEVELOP HERE IN THE LAST
COUPLE MONTHS. I THINK IT'S IN
THE MARKET CAN'T GO UP EVERY
DAY AND I THINK. YOU KNOW THERE
ISN'T ANY
REAL CHANGE IN THE NEWS IN
TERMS OF WHAT THE FED IS DOING
OR WHAT THE GOVERNMENT'S DOING
OR WHERE PEOPLE ARE DOING WHAT
THE VACCINE IS DOING SO.
AGAIN WE'RE BACK INTO SORT OF A
BROAD RALLY AND THAT'S WHERE
THE MARKET IS THAT'S HOW THE
MARKET HAS BEEN MOVING HIGHER
NOW FOR A
COUPLE MONTHS.
>> WITH NO REAL CHANGE IN THE
NEWS ON THE ECONOMIC FRONT IT
SEEMS THAT EVERYTHING WILL BE
FOCUSED IN ON THIS EARNING
SEASON. LET'S GET SOME OF YOUR
EXPECTATIONS.
>> WELL I THINK YOU
KNOW WRONGLY.
>> I THINK YOU'RE IN SEASON HAS
BEEN PRETTY GOOD I MEAN DESPITE
A COUPLE MISSES TODAY,
GENERALLY COMPANIES ARE MAKING
MONEY THEY'RE STARTING TO BUY
BACK YOU KNOW EVEN IBM HAD A
REVENUE INC
THERESA YESTERDAY SO THE FIRST
TIME IN 10 YEARS OR WHATEVER OR
SO. I THINK YOU KNOW MY
EXPERTISE IS THE FINANCIAL
SECTOR AND YOU KNOW THAT'S THAT
HAD A
VERY GOOD VERY GOOD COUPLE
QUARTERS IN A ROW DESPITE THE
WORLD ALMOST CAME TO AN END A
YEAR AGO. BUT I THINK THAT KNOW
THE INDUSTRY DOES STRUGGLE
WITH LOW GROWTH THAT'S GOING TO
BE A REAL
IS THAT RATES WILL BE RISING
HERE IN THE NEXT
COUPLE YEARS. AND LOW DEMAND
WILL PICK UP AND THAT SORT OF
HER PUTTING A BEEN UNDER THE
GROUP RIGHT NOW.
>> AS WE WERE PAYING ATTENTION
TO
THE FINANCIALS AND THE
COMPANIES BIG BANKS THAT WERE
REPORTING
LAST WEEK ONE NOTE IN
PARTICULAR JAMIE DIMON OF JP
MORGAN OF COURSE SAYING THAT
CONSUMERS ARE COILED AND READY
TO GO SIGNALING MORE OF THIS
PENT-UP DEMAND AFTER THE
PANDEMIC HAS COME TO AN END WE
KNOW THAT WE'VE REACHED
AS OF THE END OF TODAY'S
NUMBERS THAT WILL BE REPORTED
TOMORROW, ACCORDING TO THE
BIDEN ADMINISTRATION
200 MILLION VACCINATIONS AND SO
THE PAIRING THESE THINGS
TOGETHER WHEN DO YOU EXPECT
THAT THE MAN AND WOULD BE FULLY
FACTORED IN AND PRICED INTO THE
MARKETS AND WHEN THE MARKETS
WOULD BE LOOKING FOR THE NEXT I
THINK THE LATCH ON TO IN A
SENSE OF OPTIMISM.
>> RIGHT I THINK THAT'S
THIS FAST. WHAT WERE YOU KNOW
WE'RE SORT OF IN THIS RECALL
OPENING TRADE IN THE OPENING
TRADE IS GOING
ON FOREVER. IT SEEMS LIKE IS
THAT THE MARKET WANTS TO MOVE
TO THE NEXT THING ALL THE TIME
AND IT'S
VERY IMPATIENT. WE HAVE THAT
HAPPENING IT ISN'T SHOWING UP
REALLY IN THE BANK SHED A FEW
IN THAT PARTICULAR BECAUSE
YOU'RE NOT REALLY SEE THE LAW
GROWTH YOU'RE NOT SEEING
IT IN YOU'RE SEEING IT IN TO
PUT INTO INFLOWS BECAUSE THE
PARTICLES ARE VERY STRONG THE
BANKS JUST HAVE WAY TOO
MUCH CASH AND WHICH IS WHY YOU
SEE YOU KNOW SHORT RATES AN
ALMOST 0 ACROSS THE BOARD UP TO
LIKE YOU KNOW 3 MONTHS OR
OR LESS. SO THE INDUSTRY IS
VERY LIQUID. THE PROFITABILITY
IS OK NOT GREAT BECAUSE THEY'RE
JUST NOT EARNING A LOT OF MONEY
ON THEIR ASSETS. THEY'RE
WAITING FOR THIS ECONOMY TO GET
BETTER I THINK IT'S GOING TO BE
A LITTLE WARMER THAN PEOPLE
THINK BEFORE WE
GET GOING. YOU KNOW THIS THIS
DOWNTURN IS I THINK SCARED A
LOT OF PEOPLE THAT THEY COULD
LOSE THEIR JOBS AND
YOU KNOW WE STILL HAVE WHAT YOU
KNOW 2 AND A HALF MILLION
PEOPLE IN WORDS DEFERRAL.
IF YOU LOOK AT THE SAME TRAIN
NUMBER SO THERE STILL A LOT OF
LOT OF ECONOMIC STUFF WORK
THROUGH HERE IN THE NEXT YOU
KNOW YEAR SO SO I THINK IT'S
GOING TO BE A SLOW PROCESS
THAT'S OKAY WITH THE YOU KNOW
YOU DON'T WANT THE MARKET TO GO
OR YOU KNOW JUST IN ONE WEEK
AND THEN STOPPED GOING UP SO
I THINK IT'S A IT'S A HEALTHY
ENVIRONMENT, BUT WE WE NEED
MORE TIME FOR IT TO GET BETTER.
>> YES STILL SITTING AT 6% FAR
CRY FROM THE PREPANDEMIC LEVELS
AND IT JUST GOES TO SHOW THE
DETRIMENT
THAT IT ALREADY BEEN INCURRED
IN THE EARLY MONTHS OF THE
PANDEMIC AND THAT WE'RE STILL
CLIMBING BACK FROM MANY
AMERICANS LOOKING
FOR JOBS AS WE SEE HIRING TAKE
PLACE AND COME BACK INTO THE
FOLD GOING FORWARD
WHERE ARE YOU EXPECTING SOME OF
THAT SPENDING TO RE ENTER INTO
THE EQUATION EITHER FROM A
CONSUMER BASIS OR EVEN FROM A
CORPORATE BASIS AS WELL THANKS
FOR ASKING.
>> IF YOU KNOW
IT THOUGH.
>> HOPE IS THAT EVERYBODY WILL
START TO GO TO RESTAURANTS
AGAIN AND NO TRAVEL AGAIN.
>> BUT YOU KNOW THAT'S SOME
PART OF THAT BUT NOT EVERY.
>> THE THING I THINK THE ISSUE
NOW IS GOING
TO BE WHETHER CORPORATIONS
START TO SPEND MONEY, YOU KNOW
THE THING IS MOST OF THE MONEY
OUT THERE IS TRAPPED IN
CORPORATIONS. THAT'S WHY APPLE
HAS YOU KNOW 100 BILLION IN
CASH NULL HAS YOU KNOW
EVERYBODY HAS BILLIONS OF
DOLLARS
IN CASH AND THEY REALLY DON'T
HAVE A GOOD PLACE TO BECAUSE
THERE MAY BE AFRAID TO INVEST
IN THEIR
BUSINESS OR THERE ARE THEY
DON'T WANT TO BUY BONDS IT IS
BUYING BACK STOCK WHICH DOESN'T
HELP SO THE HOPE IS THAT
CORPORATIONS WILL START
TO INVEST ASKED AGAIN IN A BIG
WAY AND THEN EITHER HIGHER
PEOPLE BUILD BUILDINGS DO ALL
THE THINGS THAT WE NEED TO
DO THAT. AND WE'RE NOT SEEING
THAT WE'RE NOT SEEING IT LOANED
HIM AND IF YOU LOOK AT THE WEEK
AS PART OF LOAN DEMAND RIGHT
NOW IS THE COMMERCIAL SECTOR
THERE WERE YOU KNOW THE THE THE
CONSUMER SECTOR HAS
COME BACK. IN SOME CASES PEOPLE
THE OTHER CONSUMER LOAN
ACTIVITIES WHERE WAS PRE
PANDEMIC BUT COMMERCIAL LOAN
DEMAND IS VERY WEAK AND THAT
TELLS ME THAT CORPORATIONS ARE
READY TO PULL THE TRIGGER ON
PROJECTS TO GET THE ECONOMY
REALLY MOVING UNDERSTAND SO SO
WOULD YOU SAY THAT CORPORATIONS
ARE NOT.
>> SPENDING AND PERHAPS THIS IS
NOT AN NOT IN THIS OR
THAT BUT THIS AND THAT PERHAPS
NOT SPENDING FOR CORPORATIONS
AT
LEAST BECAUSE THEY ARE STILL
TRYING TO MAINTAIN THE BEST
LIQUIDITY POSITION POSSIBLE AS
WE STILL WORK THROUGH THE
REMAINING PARTS OF
THIS PANDEMIC OR IS IT BECAUSE
THERE IS STILL THIS LINGERING
CONCERN ABOUT WHAT A POTENTIAL
CORPORATE TAX INCREASE MAY LOOK
LIKE.
>> WELL I THINK I'M NOT
SURE IF THE CORPORATE TAX RATES
REALLY MATTER THAT MUCH YOU
KNOW 20 VERSUS
25 AND MEANER YOU KNOW WHATEVER
IT'S GOING TO COME I DON'T
THINK THAT'S THE THE ISSUE
REALLY IS
CORPORATION SAYING YOU KNOW IF
WE BUILD IT WILL THEY COME IN
CAN WE MAKE MONEY
AT IT. AND I THINK YOU KNOW THE
STRUGGLE NOW IS.
BUSINESS BEHAVIOR HAS CHANGED,
YOU KNOW YOU LOOK AT WHAT'S
HAPPENED TO PEOPLE WANT TO GO
BACK TO WORK SO HIGH BUILD A
BUILDING NOW I GOT TO HOPE THAT
I'M GOING TO BE FILL
IT IF YOU KNOW, I'M IN BOSTON.
COMING FROM BOSTON RIGHT NOW
AND THERE
ARE SOME BIG BUILDINGS GOING UP
IN BOSTON RIGHT NOW MEAN
MILLION SQUARE
FOOT BUILDINGS WHICH MAY NOT BE
BIG FOR NEW YORK, BUT IT BUT
IT'S IT'S BIG FOR ROSS AND THEY
ARE HOPEFUL THEY CAN FILL UP,
BUT I MEAN IT
COMES BACK TO WHAT DISNEY IS
GOING TO DO OR WHAT YOU KNOW
BRYSON'S GOING TO DO WHAT IBM
IS GOING TO DO WHAT MICROSOFT
IS DOING. THOSE COMPANIES NEED
TO SPEND MORE I THINK THEY'RE
JUST WAITING BECAUSE THEY'RE
THEY'RE
NOT SURE HOW GOOD THE ECONOMY
IS GOING TO BE ON THE OTHER
SIDE.
>> AND SO JUST LASTLY WHILE WE
DO HAVE YOU YOU MENTION IN
COVERING BANKING AND FINANCIAL
SERVICES SPECIFICALLY THERE
IS MORE OF A SHIFT OR AT LEAST
AN INCLINATION TO ADDRESS THE
MARKET APPETITE IN THE CONSUMER
APPETITE
IN CRYPTO WHAT HAVE YOU BEEN
WATCHING AND KEEPING AN EYE ON
SPECIFICALLY WITH HOW THEY
POSITION THEMSELVES WITHIN THIS
NASCENT, BUT. BUDDING INDUSTRY
IF YOU WILL.
>> YOU KNOW THE CRYPTO IS JUST
OF.
>> THE BIGGER ISSUE IS IS SORT
OF THIS
FINTECH MOVE AND IT'S PART OF
IT IS CRYPTO PART OF IT IS YOU
KNOW WHAT.
>> YOU KNOW SQUARES BEEN ABLE
TO DO WHAT PAID HOUSE BEEN ABLE
TO DO IN TERMS OF
GROWING CUSTOMERS AND THAT'S
WHERE I THINK THE MARKET IS IS
MOVING AND THAT'S WHERE THE
HIGH VALUED STOCKS ARE THE
CRYPTO IS JUST TO ME IN A
BIGGER SENSE AN EXAM
FULL OF THE X LESS LIQUIDITY IN
THE SYSTEM, YOU KNOW WINDS ARE
ONE PERCENT. STOCKS HAVE GONE
UP FOREVER. HOME PRICES ARE
CRAZY SO LET ME FIND SOMETHING
ELSE I
CAN BUY I THAT IS GOING TO GO
OFF IN CRYPTO SORT OF THE
NEXT THING. AND THAT'S OK AS
LONG AS WELL AS THE LIQUIDITY
IS THAT THERE BUT REALLY IT'S
AND IT'S TO ME IT'S A
MANIFESTATION OF THE EXCESS
LIQUIDITY YOU LOOK AT THE BANKS
NOW. IT IS AN EXAMPLE THE LOAN
TO DEPOSIT RATIO IS THE LOWEST
IT'S EVER BEEN.
IN THE RECORDED HISTORY OF THE
BANKING INDUSTRY SO THEY HAVE
THEY
THEY'RE JUST STUFF A LITTLE
WITH
LA CRUZ. AND IT'S AMAZING I
I'VE BEEN DOING THIS FOR YOU
KNOW 30 ALMOST 40 YEARS NOW
I'VE NEVER SEEN THE BALLOT.
SHE'S LIKE THEY
ARE NOW AND THAT MONEY IS
BLEEDING INTO THESE OTHER