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Motley Fool Hidden Gems Investing

Fed Warnings, Stock Worries, and Mark Cuban

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.33.1K Ratings

🗓️ 12 June 2020

⏱️ 39 minutes

🧾️ Download transcript

Summary

The market tumbles as the Fed Chairman warns the recovery might take a couple of years. Adobe hits an all-time high on record revenue. Lululemon slips on earnings. Starbucks closes some locations in the U.S. and Canada. Five Below hangs in. Chewy delivers. Grubhub snubs Uber. And Hertz revs up on news that the bankrupt rental car company is attempting to offer a billion dollars in stock. Analysts Ron Gross and Jason Moser discuss those stories and share two stocks on their radar: Fastly and Globus Medical.  Plus, Motley Fool CEO Tom Gardner and analyst Abi Malin talk with Dallas Mavericks owner Mark Cuban about the future of sports, the future of work, and the value of money. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Everybody needs money. That's why they call it money.

0:07.0

From full global headquarters, this is Motley Fool Money. It's the Motley Fool Money

0:20.1

radio show. I'm Chris Hill joining me this week, Jason Moser and Ron Gross. Good to

0:24.4

see you gentlemen. Hey, hey, Chris. We've got the latest headlines from Wall Street. We

0:29.2

will get into the shark tank with our guest, Mark Cuban. And as always, we've got some

0:33.4

stocks on our radar. But we begin with the market in general. The stock markets rise over

0:39.3

the past month. Hit a speed bump on Thursday when all the major indices fell more than 5%

0:46.3

coincidentally or not. This was the day after Federal Reserve Chief Jay Powell gave a press

0:52.3

conference and was candid about his belief that economic recovery in America will take a

0:57.8

couple of years. Ron, I gotta be honest, I was a little surprised to see the reaction

1:03.3

in the market. I know it wasn't just all in response to Powell's comments, but he didn't

1:08.5

really say anything that sounded outrageous to me.

1:11.7

Now, I think we're seeing two related things unfold. We're seeing COVID cases increase

1:17.1

as we reopen our economy. And then as you say, at the same time, we saw Jay Powell of the

1:22.3

Fed come out and say the recovery is going to be long and slow. So I think those two

1:27.2

things cause investors to say, well, listen, the market has had quite the recovery. Those

1:34.6

institutional investors out there that are more day traders than us fools say, I'm going

1:38.6

to take some money off the table. I'm not feeling so good about this. The Fed is saying

1:43.6

interest rates will be near zero through at least 2022, which by the way, sometimes the

1:48.7

market loves to hear. And sometimes the market gets nervous about hearing things like that.

1:54.2

And any given day, you can pick which reaction investors will have. But I also heard some

1:59.4

good things coming out of the Fed, like GDP will be 5% in 2021. They think unemployment

...

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