Market doesn't think tax hikes will happen: Trader

Market doesn't think tax hikes will happen: Trader

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Language: English

Type: Human

Number of phrases: 162

Number of words: 848

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00:02
SO THEN YOU ASK YOUR QUESTION, WELL, HOW MUCH IS THE MARKET ANTICIPATED THAT ALREADY. >> YEAH. WELL, WE'RE UP 82% FROM THE MARLOW MARCH LOW, SCOTT, SO WE'RE ANTICIPATING BETTER GROWTH I'M NOT ROOTING FOR 10% GROWTH EVERY QUARTER, FOR ARE YOU PROBABLY BECAUSE THAT WILL LEAD TO MUCH, MUCH HIGHER INFLATION THE QUESTION IS, IS THIS AS GOOD AS IT GETS AND WHEN DOES THE FED PULL AWAY. OH, BY THE WAY, TAXES ARE NOW TOP OF MINE, AT LEAST WITH SOME OF MY COLLEAGUES AND MYSELF AS WELL, I THINK WE WILL BE ABLE TO
00:33
HANDLE THAT. BUT NOW THEY'RE AT THE QUESTION MARKS. I THINK THAT'S WHERE THERE ARE SOME SURVEYS OUT THERE LIKE THE RBC SURVEY TODAY THAT WAS A LITTLE MORE MUTED BUT IT IS STILL BULLISH. >> IT IS STILL BULLISH BUT, JOHN, BARCLAYS IS OUT TODAY RIGHT BEFORE WE CAME ON THE AIR WITH A NOTE THAT SAYS THE BIDEN TAXES WOULD SHAVE 8% IN EPS IN 2022 THAT HAS REAL RAMIFICATIONS FOR STOCKS NOW, THE MARKET IN SOME RESPECTS IS OBVIOUSLY VOTING AND SAYING, WELL, WE DON'T THINK THAT THE BIDEN TAX CUTS ARE GOING TO HAPPEN ANYWHERE NEAR THE DEGREE THAT THE PRESIDENT THINKS THEY
01:04
MIGHT OR CERTAINLY WANTS THEM AND WISHES THEM TO THAT'S WHY THE STOCK MARKET IS WHERE IT IS. IF IT REALLY THOUGHT YOU WOULD HAVE SOME TRANSFORMATIONAL TAX CHANGES THE STOCK MARKET WOULD BE ALREADY ANTICIPATING THAT, RIGHT? >> RIGHT, SCOTT. I THINK WHAT THE PRESIDENT HAS LAID OUT IS A PRUDENT PLAN IN TERMS OF PAYING FOR SOME OF THIS MASSIVE SPENDING THAT WE'VE GOT, EVEN THOUGH THE SPENDING HAPPENS OVER SEVEN YEARS AND THE PAYMENTS, IF WE WERE ABLE TO COLLECT THOSE TAXES, WOULD OCCUR
01:37
OVER 15 YEARS. BUT YOU'RE RIGHT THE MARKET IS SAYING RIGHT NOW, WE DON'T REALLY THINK THAT THIS WOULD HAPPEN, CERTAINLY NOT THIS YEAR COULD IT HAPPEN NEXT YEAR? VERY UNLIKELY ALSO, SCOTT, BECAUSE WE'RE GOING INTO MIDTERMS IN 2022 SO I DON'T THINK WE'RE GOING TO SEE IT HAPPENING IN EITHER OF THESE TWO YEARS. THE MARKET BEING A FORWARD-LOOKING INSTRUMENT, IS SAYING THAT, YOU KNOW, WE DO NEED TO FIND WAYS TO PAY FOR IT, WE DON'T THINK IT HAPPENS THIS YEAR IN THE MIDST OF US COMING OUT OF THE PANDEMIC.
02:08
WE DON'T WANT TO JUST HIT THE BRAKES REALLY HARD, AND THE LIKELIHOOD OF THAT OCCURRING DURING MIDTERMS IS LIKEWISE NOT VERY GOOD. >> YEAH. >> SO YOU'RE EXACTLY RIGHT. >> IT DEPENDS. >> YEAH, THE MARKET IS HANDY CAPPING IT, SAYING, DON'T THINK IT IS GOING TO HAPPEN. >> BIDEN IS GOING TO TRY TO GET DONE WHILE HE CAN GET IT DONE, RIGHT? >> YES, SIR. >> HE MAY NOT HAVE THE MAJORITY, EVEN THOUGH IT IS A TIE-BREAKER IN THE SENATE, HE MAY NOT HAVE THAT AFTER THE MIDTERM ELECTIONS. HE WILL TRY TO GET DONE WHAT HE WANTS WHEN HE WANTS.
02:39
HE MAY NOT BE THINKING ABOUT WHAT THE OTHER IMPLICATIONS OF THAT ARE. >> YES, SIR. >> WHETHER THE STOCK MARKET IS GOING TO LIKE IT, ET CETERA, OR WHAT HAVE YOU. NOW, WHAT DO YOU TAKE THOUGH, SARAT, FROM THE FACT YOU HAVE A PRETTY BROAD SWATH OF STOCKS HITTING NEW HIGHS THIS WEEK? FACEBOOK, ALPHABET, MICROSOFT, TALK ABOUT THOSE AD NAUSEAM, I TOTALLY GET IT BUT TALK ABOUT THESE SECTORS, RIGHT? A LOT OF HOMEBUILDERS, A LOT OF RETAILERS, SHIPPERS, FINANCIALS, HEALTH CARE, MATERIALS, A LOT OF BIG-NAME STOCKS THAT OUR VIEWERS
03:10
OWN, SARAT, ARE HITTING NEW HIGHS THIS WEEK. THAT HAS TO BE A BULLISH SIGN. >> IT IS A BULLISH SIGN, AND I THINK THE POINTS THAT WE HAVE BEEN TALKING ABOUT IS WHAT IS THE MARKET BELIEVING GOING FORWARD IN TERMS OF INTEREST RATES. ARE THEY GOING TO BE GOING UP OR IS IT A TRANSIENT TIME OF HIGHER INFLATION? THAT'S WHY YOU ARE SEEING A BROAD-BASED RALLY, NOT JUST IN FINANCIALS AND CYCLICALS AND ENERGY, BUT YOU ARE ALSO SEEIC IT IN THE TECHNOLOGY SIDE. I THINK THE OTHER SIDE, CONSUMER STAPLES IS ANOTHER AREA THAT I THINK OUR VIEWERS SHOULD ALSO
03:42
LOOK AT. WHAT WE'RE HAVING IS EARNINGS ARE STRONG THEY'RE GOING TO GET STRONGER, AND I THINK GOING FORWARD WHERE INVESTORS SHOULD LOOK FOR IS WHAT ARE GOING TO BE SOME OF THE HEADWINDS, BUT AT THE SAME TIME WE'VE GOT AN ECONOMY THAT IS THRIVING AND ALL SECTORS RIGHT NOW SEEM TO BE PARTICIPATING IN IT, TOO, WHICH IS A GOOD THING EVEN IF MULTIPLES DON'T EXPAND, I WANT TO GET BACK TO THE MULTIPLE IDEA, IF YOUR EARNINGS ARE EXPANDING YOUR STOCKS ARE GOING TO GROW AS FAST AS YOUR EARNINGS I THINK THAT'S SOMETHING WE HAVE
04:13
TO LOOK FORWARD TO BECAUSE RIGH NOW THTH

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