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MarketFoolery

Don’t Get a Nasty Burn

MarketFoolery

The Motley Fool

Money, Business, Motley, Business News, Stocks, News, Investing, Market, Fool

4.71.7K Ratings

🗓️ 31 March 2015

⏱️ 11 minutes

🧾️ Download transcript

Summary

With April right around the corner the gang discusses why the month has historically been a strong one for the stock market. In addition, they chat about cable industry consolidation and dive into the listener mailbag to answer an index fund vs ETF question.

Transcript

Click on a timestamp to play from that location

0:00.0

It's Tuesday March 31st. Welcome to Market Foolery. I'm Mark Wreath and joining me in studio today from

0:07.0

Champion shares Pro Michael Olson and from stock advisor Sarah Hove. Happy Tuesday guys.

0:12.1

Hello. Hello.

0:13.0

Hello.

0:13.6

Almost April.

0:14.4

And we're going to talk about April and what it means for the stock market.

0:17.5

But let's begin with the headlines.

0:19.2

One of the big ones today is Charter Communications acquiring Bright House for $10.4 billion.

0:26.2

For those of you who don't know, Charter is the fourth largest cable operator in the U.S. by subscribers.

0:31.2

Bright House is the sixth.

0:32.6

Sarah, lots of consolidation in the cable industry these days.

0:35.8

Are these companies really that afraid of Netflix?

0:39.2

Well, that's a very provocative way to put it, Mark.

0:42.1

That's the honest way to put it but I think

0:44.4

what's happening is that we're just seeing a lot of a lot of fear as

0:50.6

you're pointing out from Netflix and from other changes in the market, but also I think

0:55.2

consolidation is just the key to the cable industry is pricing power and so consolidation

1:01.0

just heightens each company's pricing power.

1:03.2

Makes sense.

1:04.1

Charter will supposedly get some Comcast subscribers

1:07.0

if the Comcast Time Warner mega deal goes through.

1:10.8

But even then Comcast Time Warner, that combination, it's going to be the biggest

...

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