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  • LONGEST SLIDE SINCE JUNE.

  • JOE: THE QUESTION IS, "WHAT'D

  • YOU MISS?"

  • MATT: U.S. STOCKS MAKE UP THEIR

  • MIND.

  • JANET YELLEN'S RECENT COMMENTS

  • ARE GOOD FOR INVESTORS.

  • CAN THE FUNDAMENTALS IMPROVE

  • ENOUGH TO KEEP THE RALLY GOING?

  • JOE: WALL STREET IS WAITING TO

  • GET MORE ENDOWMENT CLIENTS

  • HELPING SCHOOLS MANAGE

  • INVESTMENTS HAS GROWN INTO A

  • $100 BILLION BUSINESS.

  • CHANDRA: IN BRAZIL, THE

  • IMPEACHMENT TRIAL OF THE

  • PRESIDENT IS ENTERING ITS FINAL

  • PHASE.

  • CAN SHE CONVINCE LAWMAKERS TO

  • KEEP HER IN OFFICE OR IS HER

  • REMOVAL ALREADY A FOREGONE

  • CONCLUSION?

  • MATT: WE BEGIN WITH OUR MARKET

  • MINUTE WITH THE BIGGEST GAIN ON

  • THE S&P WE HAVE SEEN SINCE

  • AUGUST 5.

  • WE POINTED OUT THE LONGEST

  • LOSING STREAK SINCE JUNE HAS

  • BEEN SNAPPED.

  • GROUPLL SEE EVERY SINGLE

  • ON THE 500 INDEX HAS GAINED

  • TODAY.

  • OSP TO SEE WHAT M

  • IS GOING ON IN STOCKS.

  • YOU CAN SEE THE GAINERS.

  • I WILL CHANGE IT OVER TO NAMES.

  • WELLS FARGO, J.P. MORGAN,

  • BERKSHIRE HATHAWAY ALL BIG

  • GAINERS TODAY.

  • FINANCIALS LEADING THE WAY.

  • AS FAR AS THE LOSERS, BIG NAMES.

  • ALLERGAN, BIOGEN, AMGEN.

  • I'M PULLING OUT PHARMACEUTICAL

  • AND HEALTH CARE NAMES ON THE

  • LOSING SIDE.

  • JOE: IN THE GOVERNMENT BOND

  • MARKET, WE SEE A SELLOFF IN

  • SOUTH AFRICAN BONDS.

  • THAT IS ONE COUNTRY -- LET'S

  • LOOK AT THE U.S. FIRST.

  • LOWER YIELDS ACROSS THE BOARD.

  • WE SEE A PARTICULARLY SHARP DROP

  • ON THE 10 YEAR YIELD.

  • THE FACT THAT THE U.S. TWO-YEAR

  • DROPPING LESS THAN THE 10 YEAR

  • INDICATING A FLATTENING.

  • FRIDAY AFTER THE FED COMMENTS,

  • WE SAW YIELDS UP.

  • TODAY A REVERSAL.

  • LET'S LOOK AT A ONE-MONTH CHART

  • OF SOUTH AFRICAN BONDS.

  • THAT IS INTERESTING.

  • GROWING ANXIETY ABOUT THE

  • FINANCE MINISTRY AND POWER

  • SITUATION HAS SEEN A SHARP JUMP

  • IN THE LAST WEEK.

  • CHANDRA: I'M LOOKING AT

  • CURRENCIES STARTING WITH THE

  • DOLLAR.

  • WE HAVE SEEN THE INDEX HIT A TWO

  • WEEK HIGH TODAY.

  • WE ARE PRETTY MUCH UNCHANGED AT

  • THE MOMENT.

  • YOU CAN SEE THE DOLLAR OVER THE

  • PAST TWO DAYS.

  • FRIDAY SEE THE SPIKE ON

  • AFTER STAN FISHER SPOKE

  • FOLLOWING JANET YELLEN'S SPEECH.

  • YOU CAN SEE IT UP .9% OVER TWO

  • DAYS.

  • I WANT TO LOOK AT THE YEN.

  • WE ARE SEEING A STRONGER DOLLAR.

  • THEYEN WEAKENING AGAINST

  • DOLLAR FOR A FOURTH DAY AFTER

  • BANK OF JAPAN GOVERNOR KURODA

  • REITERATED HIS READINESS TO EASE

  • MONETARY POLICY.

  • EYE ON THE REAL AS

  • WELL, IT IS THE BEST-PERFORMING

  • EMERGING-MARKET CURRENCY AGAINST

  • THE DOLLAR TODAY.

  • UP 1%.

  • ON THE COMMODITIES FRONT,

  • LET'S CHECK OUT GOLD WHICH HAS

  • BEEN ON A LOSING STREAK LATELY.

  • IF WE LOOK AT A CHART OVER THE

  • LAST MONTH, HERE IS A ONE-YEAR

  • CHART.

  • WE'VE HAD A BIG RALLY SINCE

  • DECEMBER.

  • BUT WE HAVE TOPPED OUT LATELY.

  • WE HAVE NOT MADE A NEW HIGH IN A

  • WHILE.

  • OVER THE LAST MONTH, A BIT OF A

  • LOSING STREAK.

  • GOLD HAVING A SEVEN-DAY LOSING

  • STREAK.

  • AFTER A TORRID START, GOLD IS

  • FADING.

  • MATT: THOSE ARE THE MARKET

  • MINUTES WE ARE LOOKING AT.

  • WE WANT TO GET INTO THE DEEP

  • DIVES AND TAKE A LOOK INTO THE

  • BLOOMBERG.

  • I WANT TO SHOW YOU THE FUNCTIONS

  • YOU CAN PULL UP BY LOOKING, FOR

  • ME IT IS THE BOTTOM RIGHT-HAND

  • CORNER.

  • FOR YOU, THE BOTTOM LEFT-HAND

  • CORNER OF YOUR SCREEN.

  • I HAVE ONE ON OIL WHICH I THINK

  • IS GREAT.

  • THE ECONOMIST AT BLOOMBERG

  • INTELLIGENCE SENT ME THIS.

  • YOU SEE THE DIFFERENT OPEC

  • COUNTRIES AND THEIR PRODUCTION

  • GOING BACK TO THE 1990'S.

  • ONLY THE WHITE LINE, WHICH IS

  • SAUDI ARABIA, THE ORANGE LINE

  • WHICH IS A ROCK -- IN IRAQ, AND

  • THE BLUE LINE WHICH IS A RUN,

  • HAVE MADE SIGNIFICANT JUMPS UP.

  • IRAN COMING BACK TO NORMAL.

  • IRAQ IS THE BEGINNER AMONG THE

  • OPEC COUNTRIES.

  • YOU CAN SEE ALL OF THE DIFFERENT

  • MARKET SHARES THERE.

  • YOU SAW IT FOR A BRIEF MOMENT.

  • IT IS INTERESTING TO LOOK AT THE

  • BREAKUP OF THE OPEC COUNTRIES.

  • JOE: DEFINITELY.

  • I'M LOOKING AT THE CORRELATION

  • BETWEEN TWO E.T.F. AND I THINK

  • IT SAYS A LOT ABOUT WHAT IS

  • GOING ON IN THE MARKET NOW.

  • THE CORRELATION BETWEEN THE SB

  • TLT.D

  • .HIS IS A 90-DAY CORRELATION

  • THEY ARE THE MOST POSITIVELY

  • CORRELATED IN FIVE YEARS.

  • WHEN EVERYTHING IS CORRELATED

  • TOGETHER LIKE THIS, IT HAS LOTS

  • OF IMPLICATIONS FOR THE MARKET.

  • IT MAKES IT HARD TO DIVERSIFY

  • WHEN BONDS AND STOCKS ARE DOING

  • THE SAME THING.

  • YOU GET NO DIVERSIFICATION IN

  • YOUR PORTFOLIO.

  • IT SHOWS THE IMPORTANCE OF THE

  • FED.

  • TODAY WE SAW BONDS AND STOCKS

  • RALLY AT THE SAME TIME.

  • FRIDAY WE SAW BONDS AND STOCKS

  • SELL OFF SIGNIFICANTLY AT THE

  • SAME TIME.

  • IN THEE ONLY VARIABLE

  • MARKET SEEMS TO BE THE TIMING OF

  • THE FED, YOU GET EVERYTHING ELSE

  • RALLYING OR DECLINING AT THE

  • SAME TIME.

  • WE ARE GOING TO KEEP AN EYE ON

  • THAT CORRELATION.

  • CHANDRA: BY CHART SHOWS A

  • DIVISION BETWEEN WALL STREET AND

  • MAIN STREET.

  • IT IS NOT THE FIRST TIME THIS

  • HAS HAPPENED.

  • I THOUGHT IT WAS INTERESTING

  • BECAUSE IT IS LOOKING AT

  • VOLATILITY.

  • WE HAVE THE CALMEST STOCK MARKET

  • IN FIVE DECADES.

  • THE ON THE SURFACE, WE ARE

  • SEEING A TO VIRGINS IN SENTIMENT

  • -- BEYOND THE SURFACE, WE ARE

  • SEEING A DIVERGENCE IN

  • SENTIMENT.

  • INDIVIDUALS ARE LOADING UP ON

  • PROTECTED OPTIONS AND EQUITY

  • FUNDS.

  • WE HAVE THE WHITE LINE RISING.

  • THIS AMOUNTS TO A STOCK MARKET

  • SHORT ON THE PART OF RETAIL

  • INVESTORS.

  • IF WE LOOK AT THE BLUE LINE,

  • THESE ARE THE FEATURES POSITIONS

  • -- FEATURES -- FUTURES

  • POSITIONS.

  • SMALLER INVESTORS ARE EMBRACING

  • THEM.

  • INTERESTING TO SEE THIS

  • DIVERGENCE OR SMART MONEY IS

  • GOING TOWARDS THE VIX STOCK

  • MARKET.

  • MATT: WE HAVE TO USE THE BUNNY

  • EARS WHEN WE SAY SMART MONEY.

  • CHANDRA: THEY GOT IT RIGHT THE

  • LAST TIME THIS HAPPENED IN 2015.

  • JOE: LET'S DIG INTO THE TRENDS

  • IN THE EQUITY MARKETS AS IN

  • INVESTORS SNAP OF

  • DIVIDENDS, STOCKS ARE PUSHING

  • HIGHER CURRENTLY ABOVE THE

  • 10-MONTH MOVING AVERAGE.

  • ARE STOCKS GETTING TOO

  • EXPENSIVE?

  • JOINING US NOW IS MEB FABER.

  • THANK YOU FOR JOINING US.

  • U.S. STOCKS ARE STILL VERY CLOSE

  • TO ALL-TIME HIGHS.

  • CAN THEY KEEP PUSHING HIGHER?

  • HAVE THE VALUATIONS GOTTEN TOO

  • MUCH?

  • >> THE WORLD LOOKS A LOT LIKE

  • THE WAY IT HAS BEEN THE LAST

  • SEAT OF TIMES I'VE BEEN ON THE

  • SHOW, SO GREAT TO BE BACK.

  • STILL EXPENSIVE.

  • THEY ARE THE SECOND BEST OF FOUR

  • ENVIRONMENTS TO BE IN WHICH IS

  • EXPENSIVE AND GOING UP.

  • THAT IS OK.

  • THE REST OF THE WORLD, WHEEZING

  • EQUITIES IN PARTICULAR, LOOKS

  • MUCH BETTER.

  • A LOT OF THE INVESTMENTS WE

  • TALKED ABOUT, EMERGING MARKETS

  • AND FOREIGN MARKETS IN GENERAL,

  • USUALLY THE REALLY CHEAP STUFF,

  • BRAZIL EQUITY MARKETS UP ABOUT

  • 60% THIS YEAR.

  • THE RUSSIAN MARKET UP ABOUT 25%.

  • WE THINK THAT IS A MUCH BETTER

  • PLACE TO BE THAN U.S. STOCKS.

  • JOE: I HAVE THIS CHART ON MY

  • BLOOMBERG.

  • THE EMERGING MARKETS

  • E.T.F. VERSUS THE SPY.

  • YOU CAN SEE IT UNDERPERFORMED

  • FOR YEARS BUT HAS BEEN PICKING

  • UP LATELY.

  • STILL IT HAS HARDLY RECOUPED ANY

  • OF THE RELATIVE LOSSES SINCE THE

  • PEAK IN 2010.

  • DO YOU SEE OVERALL EMERGING

  • MARKETS HAVING MUCH FURTHER TO

  • RUN RELATIVE TO U.S. EQUITIES?

  • >> THE END OF THE YEAR WAS THIS

  • PERFECT ONE SIDE WITH MANY YEARS

  • OF UNDERPERFORMANCE -- COINCIDE

  • WITH MANY YEARS OF

  • UNDERPERFORMANCE.

  • FINALLY GOT TO CHEAP VALUATIONS.

  • NOBODY WANTS THEM.

  • THAT SETS THE STAGE FOR FUTURE

  • BULL MARKETS.

  • THEY ONLY OUTPERFORM EACH OTHER

  • ABOUT HALF THE TIME.

  • THE U.S. HAS BEEN CRUSHING

  • EVERYONE ELSE SINCE THE GLOBAL

  • FINANCIAL CRISIS.

  • YOU ARE STARTING TO SEE THE

  • SHIFT RIGHT AROUND JANUARY.

  • FOREIGN MARKETS STARTED TO TAKE

  • LEADERSHIP, PARTICULARLY