4.4 • 3K Ratings
🗓️ 20 June 2014
⏱️ 39 minutes
🧾️ Download transcript
The Fed continues tapering. Amazon introduces a smartphone. And FedEx hits a new high. Our analysts discuss those stories and share three stocks on their radar. Plus, Jordan Ellenberg shares some insights from his book, How Not to Be Wrong: The Power of Mathematical Thinking.
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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. |
0:19.0 | It's the Motley Fool Money Radio Show. I'm Chris Hill joining me in studio this week for Motley Fool One, Jason Moser, for Motley Fool Supernova, Matt Argusinger, and for Motley Fool Pro and Options Jeff Fisher. |
0:28.0 | Good to see you, Jens. Hey, hey. We will break down the latest on tech stocks, bell weather stocks, and more. We will dig into the power of thinking mathematically with best selling author Jordan Ellenberg. |
0:38.0 | And as always, we'll give you an inside look at the stocks on our radar. But we begin this week with the big macro. Fed Chief Janet Yellen announced this week what was widely expected, Mattie. |
0:48.0 | Another $10 billion taper in the Fed's bond buying program. Once again, the sky did not fall. |
0:55.0 | Right. And we talked about this earlier in the week. The thing that gets me about the Fed now is what you exactly what you said widely expected. |
1:01.0 | Everything about the Fed now is so telegraphed. Everyone knows what's coming. And I feel like the Fed is missing a little bit of its independence. |
1:09.0 | I mean, we've sensed basically the end of Greenspan, Bernanke, now Yellen. We've had this very scripted Fed and everything is telegraphed well in advance. No surprises. Nothing I left field. And I just feel like in a way, they lay the carpet for the market for Wall Street every single time now. |
1:24.0 | And I wonder when the Fed recaps its independence and actually surprise us. |
1:28.0 | Yeah, and it probably won't happen any time soon because they're now down to $35 billion a month in stimulus. And at the rate the taper is going, of course, doesn't take a genius to figure out by the end of this year, September, October, it may be done. |
1:42.0 | The bigger question is when will they finally raise interest rates? And that's not expected until maybe the end of 2015, maybe later. |
1:51.0 | And that's when things may really start to change. Yeah, I think Jeff Keaton on something there is just I think that's probably the most important takeaway for us at least in the investing world is that rates are going to stay low for some time to come, which means really again, the market is still a place to be for returns. |
2:06.0 | So while we've witnessed this tremendous bull run here, the market just keeps on shugging up. I don't see any reason for it to stop. |
2:15.0 | And so, you know, I mean, if folks out there who sold in May and went away, I've got to be feeling pretty bad about things right now. And I think this serves as a great example is to why it's a neat little rhyme. |
2:26.0 | And we love to say it every May, but it's certainly not advice that really makes any sense in the long run. |
2:32.0 | Now back to the Fed, I mean, there have been, if you look at some of the inflation numbers, they have been a little bit higher on some of the year or year numbers now. |
2:39.0 | So, you know, again, back to Jeff's point, it's just that's going to be the next big question when those rates come up. |
2:44.0 | And if the inflation numbers continue the way they're going, then actually might happen sooner than later. |
2:48.0 | That would be your surprise. That would be a surprise. Well, if the Fed's $10 billion taper was the worst kept secret in the business world, the second worst kept secret was the unveiling of Amazon's new smartphone. |
3:00.0 | The fire phone can be yours for just $199. It comes with a one year subscription to Amazon's prime service. Jason, the 3D interface is getting a lot of buzz, but is this device going to sell in an increasingly competitive mobile phone market? |
3:16.0 | I would say I am initially skeptical that it will gain a lot of traction. I think there were a couple of big surprises from this announcement. |
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