Caleb Silver, editor in chief at Investopedia, kicks us off now.
The last time you and I spoke in this interview, you said, Are you not entertained?
Fresh all-time highs, 7000 in the S&P and pushing up more broadly, what are you seeing across these markets?
What a week, Caleb.
Yes, well, somebody cc Sly and the Family Stone because you've got to take me higher, all-time highs across the board, everything rally, pretty much, you name some of the sectors that we're rallying, sectors like transports, sectors like financials, sectors like semis, everything. that good news, semi good news out of the Gulf, and we'll see if it lasts.
But right now the enthusiasm is strong in these record highs usually beget more record highs.
Yes, we still have war.
We still have geopolitics.
These things are top of mind, Caleb.
What might shake investor confidence in this market?
Well, we've been surveying our readers as we always do, and they say the war in Iran, geopolitical uncertainty, higher oil prices, higher inflation.
Right now we look like we have a reprieve.
We may be over.
We were oversold.
That's just our animal spirits taking over.
Individual investors have hung in there, most cautiously optimistic.
That said, some of them still worrying that the worst may be yet to come, even though we have this great green news in front of us today.
For the most part, are we still seeing those day to day retail investors rotate and put a focus on those same names, the Apples, the Nvidia, the Microsoft?
Any interest this week, by the way, in the new Allbirds AI stock, I wonder what a story that was.
Yeah, what a story that was.
You and I should just change.
Our company names to AI as well, but not chasing meme stocks, chasing the home cooking, chasing the favorites, chasing the favorite stocks that got them here, and we've been watching what they've been buying over the last 4 to 6 weeks.
It's the huge names.
It's Apple, it's Microsoft, it's Amazon.
It's a lot of the chip makers, of course on the sell side though, they were right.
They've been selling Netflix.
They've been selling some of the oil stocks as they've gotten high going into this ceasefire.
I mean, isn't it incredible how quickly the sentiment has.
Change that last big University of Michigan sentiment survey, the lowest they've ever seen.
Granted, that was before the ceasefire.
That was the narrative so strongly.
And here you are, fresh all-time highs.
What do you make of seemingly how quickly consumer and investor retail investor sentiment has shifted in a couple of sessions?
That's our animal spirits talking.
Consumers feel terrible.
I don't think they feel much better today even with stocks at all-time highs.
Investors though are focused on other things.
What are they focused on?
Profit growth.
Profit growth is going to be some 12.5%.
Quarter year over year, 6 consecutive quarters of profit growth.
If big tech, the home favorites from these individual investors, put up the numbers and back it up with good guidance, I expect the market to go higher.
This is a real relief rally, but it's been lasting now for what, 14 sessions?
Yes.
Would investors do anything different with an extra $10,000 right now, or are they more likely to continue to buy in in a lot of the same names?
Individual stocks, and you know that is a great measure of discretionary spending and sentiment. an extra 100, we asked them what would you do with it.
They would buy individual stocks.
What stocks would they buy?
The same ones they hold today.
And then we ask them, JD, what stocks would you buy and hold for the next 10 years?
Same group of stocks.
We're unwilling to change our preferences.
Hard to change preferences when the returns are what they are.
My man, before I let you go, what do we see in terms of data today intraday?
How many 52 weeks?
52 week stocks, 360 stocks at 52 week highs, like 30 at all time lows.
You've never heard of any of them, 160.
5 stocks at all-time highs today.
Stocks like Caterpillar, Dana, FedEx, Ross stores, West Coast shout out to Charlie Munger, chip stocks, retailers, cruise stocks, you name it, all green all the time.
That was Ross as in Ross dressed for less.
That's right, absolutely, for our California friends.
Certainly no Ross stores.
Caleb Silver, editor in chief at Investopedia, I should start calling you Caleb Silver AI.
I think you and I just need to add AI to the end of our names and see what happens.
Katie Green, my man, thank you for being here to kick off our Friday broadcast, all-time highs.
Come back anytime.
Enjoy your weekend.
Thank you.
