I'm Jim Kramer and you're about to hear a sample taken directly from today's

CBC Investing Club morning meeting.

The market is very sloppy as we predicted.

We've been saying it's going to go lower.

It's one of the reasons why we sold some products from gamble, try to get up to 10%

cash.

What's happening is that the numbers are not good. They're unbelievably good. Starting with

ADP employment, Jeff, $497,000 higher. People expecting $225,000. Yeah, more than double

expectations sets the stage for the jobs report tomorrow. So we'll see what happens there. But

in reaction to that jobs report, you have yield spiking. You have the jobs report tomorrow. So we'll see what happens there. But in reaction to that

jobs report, you have yield spiking. You have the 10 year above 4%, the two year above 5%. You got

odds of a 25 basis point rate hike at the next July meeting, all but a certainty. So we're

seeing some pressure in the markets. We're also coming off a

seasonally strong period right into that July 4,000. Right. We had a lot of money come in,

which was ill-fated. And what people have to realize is people do get things wrong. And one of the

things that they've gotten wrong is the idea that the long bond is worth something at a 4% yield. I don't think it is. Right. And higher rates,

well, how about a 5%? Right. Because a 5% yield, that creates a lot of competition for investment

dollars. For excess cash. Right. Higher rates, creates more competition against the bond

proxies like utility, staples. Yeah, I mean, do you want own American electric power? No, you want this. Right. An American electric power, utility. People like it for the dividend. But if you can get a higher yield on a risk-free rate, why not take it? Also spells trouble for real estate, right? Because they have to take on debt to finance a lot of their growth.

Higher rates also compress PE multiples, which is really what's happening in the market today. Well, you just describe the ideal scenario of why you don't want to earn any of the regional banks.

They fit a lot of that, and the regional banks are deadly here.

A lot of number of cuts in the regional banks. Only First Horizon survived. A lot of these

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