David Lefkowitz, UBS Wealth Management, and Warren Pies, 3Fourteen Research co-founder, join ‘Closing Bell Overtime’ to discuss today’s market rally, the state of the U.S. economy, and the bond market. For access to live and exclusive video from CNBC subscribe to CNBC PRO:
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BREAKING: Recession News
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
The ongoing global pandemic has wreaked havoc on economies around the world, prompting fears of a deep recession. As a result, investors rushed to make what some have called the “big recession trade,” betting on assets like government bonds and gold as safe havens.
However, according to Warren Pies, a market analyst at 3Fourteen, this trade is starting to get priced out of the market. Pies believes that the rush to invest in recession-proof assets has driven up their prices to such an extent that the potential returns are becoming limited.
Traditionally, during times of economic uncertainty, investors seek refuge in assets that are seen as more stable. Government bonds, for instance, are considered a safe bet because they are backed by the government and are relatively low risk. Gold, too, is often seen as a store of value during uncertain times.
But as the pandemic continues to impact the global economy and governments around the world inject trillions of dollars in stimulus, the price of these assets has skyrocketed. This surge in demand means that the potential for substantial further gains may be limited.
Pies suggests that investors should begin looking for other opportunities that have not yet been fully priced in by the market. He believes that certain sectors, such as technology and healthcare, may offer better investment prospects as the world adapts to the new normal.
The technology sector, in particular, has witnessed significant growth during the pandemic as people rely more heavily on digital services and connectivity. Companies involved in remote work, e-commerce, cybersecurity, and telemedicine have seen their stock prices soar. Pies argues that this trend is likely to continue as these sectors become increasingly ingrained in our daily lives.
Similarly, healthcare is another sector that holds promise. The pandemic has highlighted the importance of robust healthcare systems, with companies involved in vaccine production, pharmaceuticals, and medical technology playing a crucial role in combating the virus. Pies suggests that these sectors may offer compelling investment opportunities as the world continues to grapple with the ongoing health crisis.
While the “big recession trade” may have provided a sense of security for investors during uncertain times, it appears that the potential for significant gains in these assets is diminishing. Pies advises investors to look beyond these traditional safe havens and explore sectors that are thriving amid the challenges presented by the pandemic.
As the global economy adjusts to the new realities of the post-pandemic world, investing in sectors that are poised for growth and adaptation may prove to be a more profitable strategy. Only time will tell if Pies’ advice proves accurate, but it certainly offers an alternative perspective in a market otherwise dominated by recession-proof assets.
Buy ndx and tsla nflx and disney
Putting well-earned money into the stock market can be over emphasized for first-time investors, unlike a bank where interest is sure thing! Well, basically times are uncertain, the market is out of control, and banks are gradually failing. I am working on a ballpark estimate of $5M for retirement, and I have a good 6-figure loaded up for this, could there be any opportunity for a boomer like me? I'm nearly 60.
These clowns missed out lol.. trying to walk back the rally.
In light of the situation right now, I believe I should watch a video on "How to survive the current recession." Actually, it's a complete failure. I was astounded by some people's ability to earn more than $k in a short amount of time. If that's still the case, do explain how.
Many are feeling the FOMO and dips keep getting bought. Many were not in position to get into the AI sentiment until way too late. Guys like this are praying for a recession fear but that's already been priced in. Market will keep climbing the wall of worry until euphoria hits and we get a dip. Just stay invested and diversified including having some cash to buy the dip
We are in Recession. Lies from fed and elites! Employment numbers manipulation
(Imo) The argument of how well markets are doing: what about market breadth?
Why are 10-20 individual stocks carrying the whole market, while the remainder of the SPX is up 1% (iirc)
We are not going to have a recession
(Technical one….maybe.)
( Real deep one?……no)
LOL, the first guy said the most recent earnings season was good. No, no it was not. In fact, it was pretty bad. Negative revenue and earnings growth pretty much across the board. Keep whistling past the graveyard. I will be stepping over your corpse when the rug gets pulled.
Did he say “Cash is King”?
Free beers tomorrow
even though he blocked me on Twitter. I have mad respect for Warren here. He's the man and calls it like it is.
ready for seafood ribs shrimp chicken back on the grill tuna steaks samon
moving on the the 3rd boom imports shoes clothes tv seteros cars products
I've been quite unsure about investing in this current market and at the same time I feel it's the best time to get started on the market. i was at a seminar and the host spoke about making over $972,000 within 3 Months with a capital of $200,000. i will really appreciate any tips or helpful guide.
Honestly, people are calling for a recession that hasnt arrived. Just as individuals have been calling for a housing market decline. Just buy and hold through the tough times. If you sold when most people said too, you would have missed the extraordinary moves in the market recently.
Just assets and ignore the noise.
Clown convention