A Recession Indicator Appears
MarketFoolery
The Motley Fool
4.7 • 1.7K Ratings
🗓️ 4 December 2018
⏱️ 21 minutes
🧾️ Download transcript
Summary
4th-quarter profits for Toll Brothers soars 62%, but the stock doesn’t respond. Meanwhile RH Holdings (aka, Restoration Hardware) pops on a strong 3rd-quarter report. Emily Flippen analyzes those two companies, and discusses the (potentially) increased likelihood of a recession after the appearance of the inverted yield curve.
Holiday music: “Hanukkah on Japonica” by Panorama Jazz Band
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Transcript
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| 0:00.0 | Thanks to Grammarly for supporting market foolery. Grammarly is a communication tool that helps people improve their |
| 0:05.4 | writing to be mistake-free, clear, and effective. Go to Grammarly.com slash fool and get 20% off a grammarly premium account today. |
| 0:15.0 | It's Tuesday, December 4th. |
| 0:19.0 | Welcome to New York at foolery. |
| 0:20.0 | I'm Chris Hill joining me in studio. |
| 0:22.0 | Emily Flipping, back by popular demand. |
| 0:25.0 | Thanks for being here. Thanks again for having me. It is by popular demand |
| 0:29.2 | although for those who have asked those on Twitter who have asked where is is Emily Flippin and why is she not on |
| 0:35.0 | Twitter? She has not yielded to that demand yet. |
| 0:37.4 | You know, but as the consumer demand rises, I may have to. |
| 0:41.3 | May have to join. |
| 0:42.3 | Well, and we'll get to how Twitter can be helpful for investors. |
| 0:46.0 | There certainly was helpful for us today and we're going to talk earnings, we're going to talk |
| 0:52.4 | housing in a couple of different forms. |
| 0:55.0 | Specifically Toll Brothers and Restoration Hardware. |
| 0:58.0 | Let's start with Toll Brothers. |
| 1:00.0 | Fourth quarter profit up 62%. |
| 1:02.0 | That's the headline. And if that was the only thing that mattered, |
| 1:06.1 | then you'd be very confused by the fact that the stock was down. The stock's not as not down as much as it was. It's down about 1.5% right now as we came into the studio, it was down a bit more earlier. |
| 1:18.0 | When you look at what's going on with Total Brothers, what do you see? |
| 1:23.0 | Well, I think we're looking at the housing market in general and a smaller part of that |
| 1:27.8 | housing market, the kind of niche, high-end, very expensive housing market. |
... |
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