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Media Transcript:
Chris Wolfe January 2018
all right record-setting day on Wall
Street with the Dow the Nasdaq and the
S&P; 500 all at record highs in fact the
Dow is less than 80 points from 25,000
chris wolf at first republic' private
wealth management at joseph Sroka at
nova point capital joining us this
morning I'll begin with you Chris good
morning so do you think the Dow if it
closes above 25,000 today it would be
the shortest span 23 days between 24,000
and 25,000 how high is this market gonna
go you know I think what's driving the
market are the three P's its policy
politics and profits the policy is all
about low money at low interest rates
cheap money that's gonna stay around for
a while because there's not a lot of
inflation politics is all about reducing
regulatory burdens right now that's
typically good for profit margins and
finally the profit story the culmination
of those first two is pretty good it's
gonna be up again in 2018 so I think
markets can continue to benefit from
that kind of backdrop and and until
something changes it may be that markets
continue to move higher here so I'm
taking it as yes you think we're closing
above 25k today I've not today I think
it's I think it's somewhere in the near
future markets still have a lot of
momentum around good news and profits so
a your prediction and B I mean we've got
the VIX at the second lowest level in
history where is the volatility where's
the fear I absolutely agree the low
reading on the volatility index is
really what I'm paying attention to in
the market right now the markets really
shrugged off a lot of geopolitical
events and really stuck to the earnings
story so I think as we move through 2018
the thing to watch for is volatility
coming back into the market and a little
bit of nervousness starting to shake out
at that point I think the market gets a
little less speculative and concentrates
a little more on quality you know it's
interesting at the end of last year it
seems like a lot of these big technology
stocks were losing their amazing
momentum that they had earlier in the
year but we're seeing a push again into
technology at the start of the new year
Chris especially with the semiconductors
and chip sales you know use chips and
autonomous vehicles and phones etc what
do you make it the tech sector I think
it's very interesting it's a place we're
actually overweight in portfolios we
like a lot of the technology that's
being used in many different ways we
also think that there is new
markets that will see the use of
technology particularly in Europe and
Asia technology usage has typically been
a u.s. story to increase productivity
but we're starting to see inroads in
Europe and Japanese companies where
they're using a greener degree of
technology and kind of I think that
hallmark here is to think about what
happens when you have robots for people
over the course of the next five or ten
years that's a ultimate use of
technology and ultimately that's
something that's probably very important
for China an Asian manufacturing I don't
want to think about it but yes the the
robot revolution they're coming
Joe Bitcoin this is a very interesting
controversial topic Wall Street Journal
is reporting that Merrill Lynch is
banning the trading of certain Bitcoin
futures what do you make of that
I read the article and I think what
they're doing is they're banning the
Bitcoin features to trade on the CMA and
also I think they're banning their
financial advisers from recommending
their clients buy the Bitcoin trust you
know Merrill has an obligation to
recommend only suitable investments to
their clients and obviously they have a
large you know diverse group of clients
but if they felt they needed to step in
from top down and tell their financial
advisers that they they couldn't
recommend these investments that's their
business decision that's pretty scary I
mean they have issues with the
eligibility and the suitability
according to this article about these
Bitcoin futures and as we wrap this up
Chris obviously it's cold outside up and
down the East Coast we're hearing that
in a in New England there could be some
fuel shortages we've seen the price of
oil go up the past month or so where do
you think oil is headed in the new year
you know our view is that as the economy
picks up we're likely to see the demand
story pick up a little bit we've started
to see more interest in supply coming
online as well so markets are likely to
stay in balance with oil a little bit
higher Chris Joseph thank you and good
luck today in your travels

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