On this week’s show, Karl discusses why the stock market continues to rise. Investors have seen 2 out of 3 things worrying them turn positive. He’ll explain.
Good morning everybody. Welcome to the Eggerss Report. It’s your investing playbook. Thanks for joining me. My name is Karl Eggerss. We come to you each and every week to bring you the latest information regarding the stock market, the bond market, the financial markets. Anything that you’re investing in, we try to give you some information on that. And we also try to give you some useful tips, financial planning, anything in that realm, again, to help you become wealthier over the long term. And, also try to avoid making some of those mistakes.
We all have different experiences. I get to see and meet a lot of people and because of that I see their successes and failures and I get to see some of the mistakes they’ve made and some really good decisions they’ve made over time. So we try to put that all together and bring it to you as well, so that you will become, again, a better investor.
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Speaking of new year, we’re off to a pretty good start if you are long the stock market. If you are short the stock market, thinking it was going to go further lower, you’re losing a lot of money. And if you’re sitting in the sidelines, you, depending on when you did that, maybe you’re a little confused. So we’re going to try and dissect what’s working. Is it going to continue to work? And go into all of that.
So let’s start off just kind of recapping how this week got going. Basically we saw more gains and they were not really focused in one area. I mean technology did very well, but the small caps, which is a spin, hit real hard. The Russell 2000 up almost 5% this week and year-to-date up over 7%. Now look, from the lows of December 24th, Christmas Eve, we’re talking almost 15% for the Russell 2000. The Nasdaq was strong this week. Technology, foreign markets. The U.S. market S&P 500 up about 2 and a half percent. The Dow Jones about 2.5%. Volatility fell, now under 20, under 19. Remember it had gotten over 30, down to 18. So those were some of the major indices were doing.
As far as specific areas, biotech almost over 9% just this week. Railroads, very good to see railroads going up. Oil up 7%. Oil’s had a huge bounce from the bottom, up over 20% or so. Home construction doing well. I think those stocks are undervalued. We own home construction stocks in our aggressive strategy. Those were some of your biggest movers. I mean again, a lot of things were up 3, 4, 5%. A lot of specific areas.
On the down side, not too much in the red this week. We did see a little pull back in the gold miners. We saw a little pull back in the cryptocurrencies. We saw slight pull back in Treasury bonds and silver, copper. But for the most part, lot of green on the screen this week.
So as we continue to move higher here, we’re going to delve into A, why it’s happening, and then B, is it going to continue. Because that’s really the question. In the medium terms, is it going to continue. So Monday came in strong rally, sold off a bit but finished up about .7% for the S&P 500, about 100 points for the Dow. Tech was the strongest at 1.2%.
China talks, the trade talks started. That was what everybody was waiting for. So we started those talks and then we’re also starting to see some, what they call a breath thrust. I know it sounds a little strange, but basically the situation we’re in is that we got deeply, deeply over sold on Christmas Eve. Now what does over sold mean? That means it’s the pendulum swinging and it’s pegged too far to one side. And you know it’s going to go back the other direction. In fact, if you’ve seen those rides at the amusement parks. I think Sea World has it or Six Flags. It’s a big, looks like a big ship and it’s on this arm and it’s going back and forth, and back and forth. It almost looks like it’s going to go all the way around, but it never does. It goes all the way up and then it swings. When it’s about to stop, everybody knows where it’s going.
The stock market is a pendulum like that at times. Now we don’t know exactly when or exact levels, but we do know when certain things line up that are sentiment, right? Too many people fearful and scared. We know that these things are, again, some of these oscillators that we watch are really, really over sold. Then we know something’s coming. And this was really large. So what this breath thrust is that we’ve seen this week, and this is the first since 2012, by the way. It’s when things are so negative and then you get this shot straight up. Since that time, since we’ve seen that, the times that it’s happened, it’s led to much, much bigger gains in the long term. Like we’re talking a year from now.
We saw a lot of these oscillators go from wildly negative, like extreme, too extreme on the up side. And that is a good thing. So what that tells me and what I’ve been looking for is the wash out, which we got. We got a wash out. I mean Christmas Eve, that was it. And I have told you over the last several podcasts that we had been buying on the way down and our growth strategy just basically the S&P 500, because we wanted something very liquid and something that we could trade very quickly. Because that’s how fast the markets were moving. And so the cash we had on the sidelines, we were putting that to work as the market was falling. We got our last buy in on Christmas Eve. So we’re trying to buy into that flush. We allocated some 401Ks that we manage, things of that nature, because it was so extreme.
So we knew we were going to get a rally, but nobody knew how far and how much. So we got the wash out, which are these give up days, right? Just get me out. That freak out session. But what’s followed it is key. It’s not just that people freak out and sell everything. What’s key is do new buyers step in and say I’ve got to buy this dip because it is such a bargain. And we saw that. We saw that big time.
So we got these all basically all or nothing days where everything goes down and then we were followed quickly by everything goes up. So we’ve see the 1000 point rallies, we’ve see 800 point rallies in the Dow. So all that to say, is that we had the flush and we’ve had a bounce. And the bounce has been very strong. I mean the major indices were up over 10% from the low. So that is a really good thing if you’re bullish. And we’ll come back to that in a minute.
Now Tuesday market, and this is the theme of the week, has been very resilient. News that talks with China were going on into Wednesday, and it was, we heard that well, there’s not a deal so we’re going to have to, we’re going to keep talking into Wednesday. And everybody thought this was maybe a two-day meeting, but it was going to be Wednesday. And some sellers started selling stocks and then buyers stepped back in.
Now let me ask you this. Does anyone really think that there’s going to be a comprehensive deal with China done in two days? I mean, really. I didn’t. And I still don’t. What we’re going to see, and we’re seeing it, is China saying we’re going to do more of this and the US will say we’ll do some of this. And there’s going to be some things checked off that are moving in the right direction. But to have a comprehensive trade deal and the have them stop stealing stuff, that is a long process. Months if not years. But some of the big items, yes, can we check those off the list? We can get there and it sounds like we’re moving there. So that’s good.
So it’s moving in the right direction, but when the markets started to sell off and you started to see notes about well, they didn’t get a trade deal done? That’s disappointing. I mean, seriously. So the buying picked back up by the end of the day.
Again, Wednesday we come in again. Theme of the week, resiliency. Market had every opportunity to sell off, but it rallied back and finished up. The Fed Minutes came out and this was interesting. The market was up about 60 points, the Dow Jones, when the minutes of the meeting, and let’s be clear, a lot of people are getting confused thinking the Fed did something this week. These are the minutes from their last meeting in December. That’s what came out. So this is the transcript of basically what’s going on. And it came out and said hey, it reiterated. Powell saying we want to be patient. Good, that’s what the market wants to hear, that they’re on pause until they see evidence that they need to raise rates. That’s very good.
But they also are talking about continuing to shrink their balance sheet, which is kind of quantitative tightening. It’s the opposite of what all you heard for years, quantitative easing. So when that came out, the market starts to sell off. And then lo and behold, again, resilient market moves back up.
Thursday same thing. Again, all of this, this whole theme this week and many of you aren’t watching the markets and the tape as closely as I am, and so, but it’s interesting to watch what happens in trading. And by the way, you shouldn’t be. Okay. I’ve got a problem. But you look at this market and you watch it, what the characteristic looks like, and we go back a few weeks ago – every rally was sold. I mean it would start to rally and it was just pounded lower and pounded lower. Now every sell off seems to be bought, and there’s some times where it looks like it should sell off and yet it still gets bought. So it’s interesting to watch the intraday dynamics.
Same thing on Friday. We saw the market down over 200 points on the Dow Jones, and then it finishes almost flat on the day. And I posted an article couple of days ago on our website, eggersscapital.com, and it was titled Here’s the Test. It was mainly geared towards you technicians or you people that are doing more short-term trading. I say you people like there’s something wrong. It’s, look, we have a vast array of people listening to the podcast. Some are long-term investors. Some are newbies. Some are extremely wealthy. Some are extremely poor. And I say basically starting out, right? They’re just, they’re younger or they just don’t have a ton of money and they’re saying I want to build wealth. So they’re wanting to hear that. So we have people all over the map.
And so I talked to a lot of people and we talk about fundamentals but we also talk about technical. So this article was geared towards those people that like to look at the charts. And it’s very clear, like the S&P 500, that 2600 was a line in sand and we’re sitting at it right now. And so what happens is, the technicians will draw lines all over the charts and what looks like a floor, because it keeps bouncing off of this fictitious horizontal line, when it broke through, which was December, now that floor becomes a ceiling. So we’re at this level around 2600 that
… everybody’s looking at it. So it’s kind of a self-fulfilling prophecy, that’s why technicals works to some extent. So I posted that article, and we sit there right now. And if you think about it, it makes sense why we sit there because if you are still sitting on the sidelines, and you’ve seen the markets rally 10-11%, now’s the time where you go, “Do I want to put new money to work?” It’s already run up, right? But the sellers are hesitant because as they’ve been selling short or whatever, they’ve been getting their faces ripped off because the markets been going up.
So you have this stalemate. So it makes sense that we would pause at this level or go down a little or go up a bit. We’ll see, but this isn’t a natural area for it to pause. And by the way, this V-shape recovery we’ve had has been very quick, one of the quickest in history. In terms of the drop and then going back up and bouncing where it has, has been one of the sharpest and shortest in history.
That doesn’t tell you a lot, but the bears are saying, “Hey, this looks like a bear market rally.” Go back to ’08. We had some of the biggest rallies in 2008. As it was going down, it went down so fast that it would have sharp recoveries. I mean, there was one that was 10 or 11% in one day, but then it would just sell off, so you had this stair step down, basically. And the bears are saying, “That’s what we’re in right now.” The bulls are saying, “We’re not in that. Things aren’t near as bad as they were in ’08, and we’re not having that.” But, you don’t typically see a V like this that just keeps going. So do we expect it to pause and even pull back a little bit? Yes. I don’t know if it’s going to test the lows or even go to the lows. I don’t think that’s going to happen because, again, it’s a very different situation, but here’s what’s going on in the big picture.
So, remember, part of what was happening in 2018, is that the economy started to slow. Not a lot of people saw it and certainly the Federal Reserve didn’t see it. So the Federal Reserve is out there saying, “We need to keep raising rates because we’re going to normalize, and the economy should withstand higher rates, so that’s that.” And the economy was starting to decelerate, which we talked about, and we didn’t say it was grinding to a halt. We just said decelerate. It was slowing down.
So the Fed was a little out of touch, and the economy was slowing down, and at the same time, we have a trade war with China going on. Two biggest economies fighting, which is going to grind everything to a halt, so that’s all a bad combination. So stocks are selling off, we saw that. What we needed was three things to happen. We need the economy to improve, we need the Fed to slow down raising rates, and we need the trade war to at least improve. We’ve had two of the three.
So go back to late 2018, the Federal Reserve Chair, Powell, comes out and says, “We’re way …” He didn’t say, “Way”, but he said, “We’re below neutral. We got to a ways to go.” So the market didn’t like that. Well, then he changed his tune a month later and said, “We’re near neutral.” So basically he was just saying that they’re going to slow down their rate hikes, which the President’s been riding ’em pretty hard the last six months. Has he not? Maybe four months.
So, now he’s changed his tune. Many other Fed reps have come out and changed their tune, and basically now, it’s been said by Powell, by his mouth, that we’re not set on a certain path. We’re going to take this as is. Which means, we’re going to be data dependent. So if the data’s bad, we’re not going to raise rates. If the data’s good, we’re going to raise rates. That’s what the market wanted to hear, so that’s what really … We started to get some short recovery and we had these big up days when Powell said that. So that’s one thing that was checked off the list, is that we have the Fed now on our side, okay.
Number two was the trade war. And as I’ve said, that’s not going to get resolved over night, but are we seeing progress? Are they talking? Yes. Now we’ve seen some false starts here, right? We’ve seen false alarms. Things are going great, and then all a sudden, we’re not talking anymore. So let’s see, but it seems like we’re getting some progress on that. Again, that’s all the market needs is progress. As long as the two sides are talking and they’re making concessions to one another and going in the right direction, that’s a check in the positive box.
The last component we don’t have yet is, we need the economy to stop decelerating and it’s not yet. We’re continuing to get some data that, again, leading, leading data that suggests that the market, or I should say the economy, not the market, is again, slowing down and it’s continuing to slow down. So I think over the next few weeks, maybe even months, you’re going to see weaker and weaker data come out. Again, I think that is something that we need to see that stabilize, okay. It doesn’t need to necessarily ramp up, but it needs to stabilize and right now it’s decelerating. So that’s a problem because regardless if the Fed stops … I mean if the data keeps getting weaker, they’re going to start cutting. That’s not a good situation either because that means the economy’s doing poorly. Again, we’re not there yet, but we’re seeing some leading indicators that are suggesting that the economy’s going to tell us in the future that it’s slowing down. So that is a concern and that’s a big one. That’s one of the big three in my opinion.
Now, again, we always watch the leading economic indicators and those, the basket of them are still okay. But again, I’m starting to see this slowing down a bit, so that’s something to watch and that’s what … See, that’s what the markets been pricing in. It’s been worried about that and so that’s why you’re seeing the selling at the same time is because the Fed was raising rates and what they perceived to be a slowing economy. Now you have the Fed at least acknowledging that, “Okay, we will pause and wait and see what happens here.”
So we’ve got two out three big boxes checked, okay, but we need the real big one is the economy because what is the economy? Ultimately, it goes down to the profits of the companies and that’s what you’re buying when you’re buying the stock market. Speaking of those, we’re going to see the earnings coming out. That’s the next big thing on the calendar here is the earnings coming up for all these companies. What are they going to blame? If they’re bad earnings, they’re going to blame the trade war, right? Apple already did that. Apple already blamed that.
Apple’s got some other issues and they don’t need to be blaming the trade war. They need to not have their phones be $1200 bucks. So they’ve reached a tipping point and their sales are slowing down and they have some major competition in China. So it’s not the trade war, Mr. Cook, it’s actually what you’re doing.
So that’s that. But look, if the earnings coming out, they’re going to blame a couple things. They’re going to blame the trade war, but I also think what’s going to happen is they’re going to be blaming the strong dollar and that is a real concern because the dollars been very strong until recently. Those earnings for those big, major corporations, I think are going to be a little less than expected. Now, the good news is those earnings expectations of what the street and as Wall Street has been expecting has already been coming down at a pretty rapid rate, so that’s why the stock market was falling. They already priced some of that in. So let’s see if some of these companies prove me wrong and actually beat. That would be nice.
And speaking of that dollar, the dollar did start to fall this week and that was a good thing. It’s good for a lot of reasons and it really is, holds the key, for the most part, to a lot of different things is what happens to the dollar drives a lot of different things. Really, since we saw the dollar peak, which was in … I think it was in kind of mid … Let’s call it mid-December, we’ve seen about a three percent drop in the dollar. Now you may think a three percent drop a big deal, but in currency world, it is a big deal, so that will help some of those big, large corporations.
So again, just to recap. Two of the three major things on my list and everybody’s list has been checked off and gone from the negative side to the positive. The Fed is now on our side, a little bit. If they shrink their balance sheet too much, too quickly, it’s just like they’re tightening, okay. So even though they don’t raise rates, they still could be tightening. That’s key, but for right now, they’re on the bull side.
Secondly, we are seeing, again, improvement in the trade war. So the next thing we need to see is actual improvement in the economy, keep this pace up. But some of these things … So going back to what I said earlier about these breath thrusts and this … I mean, we’re seeing some really interesting statistics coming, and I mentioned, I cautioned you on last week’s podcast about data mining because you can almost get anything to fit your story whether you’re a bull or a bear now because of technology and the way we can get data. This is a very swift pullback.
I said it last week and I’ll say it again, this was a multi-day/multi-week crash. I don’t use that term lightly. What I mean by crash is different than a bear market. A crash is a violent selloff that happens in a very short amount of time. It doesn’t have to happen in one day, it doesn’t have to happen in two days. Now you could say that ’08 was a crash as well, but that was a nasty bear market because it lasted weeks and weeks and months and months and a couple of years, right? What we’re seeing right now happened pretty quickly. I mean, it happened within a quarter, three months and a lot of it happened in December very quickly. It was one of the quickest declines that we had seen from a 52 week high.
I mean, there’s all kinds of stats, but when we have a market that was at a high like it was, I’ve told you before, bear markets generally start under different conditions than what we’ve seen. They usually rollover. What we saw, was a market was at a new high and then it started falling. And so when we see that, that the market is at a 52 week high, and then it drops dramatically, the recovery is usually pretty quick and the results are that the stock market is higher a year from now. And when you have bad quarters, same thing. When you have very sharp drops in a month, same thing.
So there’s a lot of things lining up to suggest that, yes, we may get some backing and filling and bouncing around and it’s been a nice bounce that wasn’t a shock that we got this kind of recovery. What’s going to happen over the next two, three months, that’s a little foggier because of the fact that the easy money, so to speak, has been made. Now, we kind of digest here a little bit and we may pull back a little bit, we may move sideways, maybe we go up a little more. But I feel more confident that we will be up a year from now than not, given some of these statistics and given, again, where we were coming into this. ’08 was very, very different and the conditions of ’08 compared to now, very different.
Looks what’s happening to the bond market. See, that’s what’s interesting. I hear a lot of people who are bearish. They say, “Boy, the bond market, the loan market, the credit spreads, all these things are blowing out.” They use these adjectives like blowing out. 2015 and ’16, that selloff we had, was much worse for that than we’re seeing now. And with you see the recovery and some of these types of assets, it’s been really, really phenomenal.
I mean, even if you, you could take a look at, there’s several ETFs now, but there’s a bank loan ETF. We don’t own this particular one or a bank loan ETF like this, but that thing fell from really October until mid-December. It fell seven percent, which is again, this is a pretty stable thing. But since then, it’s recovered almost all of it, about three quarters of it. If we were going through something else, I don’t think that would be happening. We’d see the stock market recover, but we wouldn’t see necessarily the bond market recover.
So, I think, again, this was a bull market correction. I would argue, it’s probably was more like a crash and the reason I say that is because, again, we’ve talked about this in previous
… this podcasts many times that, due to the computers, the algorithms, the speed of trading, the speed of information, that causes more emotion, quicker triggers, people buying and telling quicker, technology’s made it faster. So we’re susceptible to crashes. We’ve seen, in 2010, we saw a flash crash, if you recall. In 2015, we saw the second flash crash. We saw a flash crash this week, but you didn’t even notice it, I bet. It was in the volatility index. There was a day this week that the volatility index all of a sudden just, for no reason, just spiked up and then went right back down. It was very strange, not a lot of people saw it, not a lot of people talked about it. And it was on Wednesday morning. And the VIX literally went up 13 percent and went right back down. Nobody even talked about it.
That stuff is getting more common, that we see these types of … it could be in gold, it could be in a currency, it could be in the bond market, the stock market. So I think we do need to live with more volatility and that’s why 2017 was so unusual, because we had such little volatility. 2018 was more normal. See, a lot of people have it backwards. They say, “We’re at 2018, this is crazy.” It’s not crazy. 2017 was crazy.
What’s interesting, you heard the president talk about we had a glitch, in December we had a glitch in the financial systems. That’s why the market was falling. We didn’t have a glitch. If you thought that was a glitch, why didn’t you think this past week was a glitch when it was going back up?
A lot of people like to blame things when it’s going down, but they don’t blame anything when it’s going back up. We didn’t have a glitch. We have a lot of volatility now. It’s probably here to say, not necessarily what we saw in December, but we’re going to have a little more than we saw in 2017. Market’s do this, right? They sell off. They’re trying to digest news, and then they get overdone and cooler heads prevail and you and I step in and we buy those bargains. That’s never changed. That’s been around for a long time.
The thing we need to watch going forward, that’s most important is what is the economy going to do. I don’t think we’re having a recession in 2019, but we need to watch. We need to see some of these leading indicators stabilize. Otherwise, yes, we could have something that is more prolonged and more negative.
Now, I’ve been pointing this out the last few weeks, and it’s working out pretty perfectly, and it wasn’t my idea, but we wrote an article about it. We talked about it. Talked about it last week, the Paul Tutor Jones effect. The article, what I wrote about, was essentially saying what he said about a month ago was we’ve seen this before. The fed does something that investors don’t want, which is they raise rates, and they keep raising them. At some point, the market starts, they start selling stocks, and the market goes down enough to where the fed says, “Okay, okay, okay. We won’t raise any more.” And the market rebounds. Isn’t that what’s happening right now?
It rebounds, but what’s interesting is as it rebounds, it may even go to a new high. Imagine that. It would freak bears out if we went to a new high, but all those hikes that they’ve been doing, all of a sudden, they trickle into the economy and they really do start to talk hold and they start to really slow things down. That’s when you have a bigger sell off. That could happen, right? That could happen very easily in the next few months. But you don’t go from a high to all of a sudden go into a bear market overnight. It doesn’t happen that way. Could it happen? Sure, but it’d be highly, highly unusual. What’s more normal is you’re at a new high and you get a sharp sell-off and then we really back and we’re on our way, and then at some point, you do go into a bear market because that is normal.
I don’t think it’s yet. I think you can back to the 1998 timeframe. Go back to 2011. I think it’s really interesting. We saw another similarity this week to 2011. In fact, if you put a chart of 2011 on top of the last two months currently, you’d see a really similar chart. What’s ironic about it is do you remember what happened in the summer of 2011 when the U.S. lost its triple A rating by Standard and Poor’s? Well you know there’s another company that also rates our bonds that has them at triple A. Their name is Fitch. That’s why when you look at a bond rating, it’s always AAA or AA or AA+ and then there’s a slash and then there’s a second one. It’s because there’s multiple rating agencies. They all rate these. Well Fitch gave a warning this week. “Hey, U.S., you better get your act together because we may downgrade you as well.”
Isn’t that interesting that here we are 2019 and the situation looks very similar to 2011. Stock market’s selling off very fast, down about 20% by the way from high to low, and went up, maybe it goes back down a little bit and ultimately resolves itself to the upside, and we get credit rating warnings and maybe they actually do it like they did in 2011.
We were all worried about a recession because look we just came off ’08, 09. We were a couple years forward and we were worried that it was going to happen again. A lot of similarities to that.
So, let’s continue to watch, but we’re getting very polarized now where there’s still more bears than bulls from what I see but the bears are screaming right now. They’re screaming that all of this quantitative easing that was done after the financial crisis, it’s coming back to roost now. Economy’s sucking wind. There are a lot of negative reports coming out of various places overseas and even some pockets in the U.S. Again, let’s see if it’s a cyclical slow down or is it secular, meaning it’s going to continue. The jury’s out on that, but for right now we’ve had the relief rally. The easy part is behind us. The hard part is now where we’ve bounced a bit. Now what happens?
Again, if you wanted to sell on Christmas Eve and you didn’t, good job, but now you have the chance to sell if you want. If you want to lighten up. Now, you probably don’t want to. Why? Because it’s going up. See? But, this is the time to reassess and go, “You know what? Do I want to reallocate here?” I would say that on the other side. If you were sitting on the sidelines waiting to take advantage of market drop, you had a 20% drop and more in a lot of stocks, but a 20% drop in the S&P 500 and if you didn’t take advantage of it, what were you waiting for? Because now what happened is you’ve missed some of it. That’s the problem with doing that where you’re sitting on the sidelines waiting, waiting, waiting because when the 20% drop happens and people are panicking, you feel like it’s going to turn into 30 and 40 and 50. But 20% drops are pretty big, and to take a portion of your money that you were wanting to get in there and do it was the key.
All of this boils down to having a strategy and an allocation and then making adjustments. Last year, you could have been doing tax loss harvesting, which we’ll talk about another time, rebalancing some things, swapping out of stocks, upgrading, all those things to do at the end of the year.
Another little trick and we did this with some clients that were doing Roth conversions, you take some really beaten up stocks that are down a lot, you take those stocks, you convert them into a Roth. So, you pay taxes, but you’re paying a lot less taxes because the stocks are down, and now those stocks that were beaten up are the ones moving the most on the upside. They’re growing tax free now. Really interesting strategy. So not only is a Roth conversion a great idea at times dependent on your situation, but imagine doing it with some beaten up stocks. It’s kind of a double boost if you will.
So a lot of stuff to do at the end of the year to add some value here. We were rebalancing things, we were selling some things, and doing tax loss harvests. It was a very busy time of the year due to the volatility.
All right. That’s a lot of stuff, isn’t it? But it’s a lot of stuff going on in the market. Let’s see what next week holds, but again, we’re going to enter into earning season. That’s the next thing to watch out for here. Let’s see what these companies blame, because they’re going to blame something if they didn’t have good profits. But we really, this is something that could tell us what’s happening because we want to see the people that have the boots on the ground which are the CEOs and the managers and the CFOs, we want to hear what they’re saying. And if they say, “Things look really good,” and their earnings are beating, this market’s going higher, you know … Economic reports are one thing, but it’s the companies that make up the economy here. It’s the consumption of you and me, people, and these companies.
All right. Have a great weekend and we’ll see you back here next week on the Eggerss Report. Don’t forget, go to our website eggersscapital.com and our telephone number is 210-526-0057. Take care everybody. Have a wonderful weekend.
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As president and CEO of Eggerss Capital Management, Karl Eggerss may hold securities mentioned in the show for himself and his clients. Just don’t buy or sell anything based on what you get from radio or TV. Use your own judgment or get yourself a trusted advisor.