Business news and analysis. Here. The policy, the players, the politics, the president s, the world. Your world. It starts now. Welcome everybody, im neil cavuto. On top of a raging bull that you saw coming. More than 3,400 days ago. What started in the midst of a meltdown has redefined the country many thought was permanently down. Out of money, out of credit. We were told, out of hope. But not. Today, we follow the green. You notice that i did not say red or blue or conservatives, or were liberals, republicans, or democrats. This is about you. How you pick yourself up and dusted yourself off. You refused to believe that the American Dream is dead. It wasnt then, it isnt now, for the next hour we will show you how it all happened. With susan lee on how we
overcame a financial crisis to become a financial powerhouse. Why so worried On Capitalism . Value investor on why he is still gung ho On Capitalism. And then came a cme chairman on all that glitters, why this Technology Terror is not like the last one. Then, a look back at the giants at who fueled this historic bull run and when we had them on the show. Apples steve jobs and microsoft founder bill gates. Lots to get to, so lets get to it with Susan Lee Outside the New York Stock Exchange where it all went down. Hey, susan. Hi, neil. A bull market is about 20 . The longest stretch in history. Not necessarily the strongest,
still, a long road back from the financial crisis. Markets plunging, and collapsing. Investors panicky. It was a great financial meltdown, but nothing great about it. As quickly as it cratered their stock. Millions lost their jobs, millions more, their life savings. Record numbers saw their values plummet as they were lucky enough to hold onto the homes at all. Anything of value kept losing i it. Bottoming out and hitting lowes on march 9th, 2009 when the s p 500 hit its prophetic low, 666. You knew it at the time, but that would be the worst it would get. Barack obama had been president for a little more than seven weeks, but a massive Financial Rescue of everything from better banks and lenders to General Motors was on. And then, there was Federal Reserve chairman betting trillions of dollars buying back
how does that stack up to other others . Well, when they are up, and it always feels better, neil. This is clearly been traumatic run. As far as im concerned, if i Go All The Way back to 1974 when the Dow In November was 570, give or take a few points, and where we are now at 35,700, as far as im concerned, we have been in the bull market for 44 years. Neil wow, that is one way to look at it. The ties between this run up and The Last Run Up was technology. We learned that the Internet Boom of the clinton era that it was propelled by some companies that did not deserve to be part of the run. The difference that time is that you have a lot of companies with established earnings to justify it. What are you hearing . A lot of Technologies Companies are consumer companie companies. Amazon, netflix, their
subscribers are not going anywhere, if you ask me, any time soon when you look at at e stocks piling up on your doorstep. Not to get too tactical, but if you look at the sectors, there are 11,000 sectors. The Top Performing during this bull run is the consumer sector. If you have tax cuts, deregulation, getting jobs that are starting to pay more money, and Interest Rates dont flare up too much, then you have a consumer that stays strong. That propels the bull market. Neil melissa, when you talk to investors, some feel that they were too late to get into it. What do you tell them . I dont think it is too late. A lot of people are saying that is too late or we missed it, i dont think thats true. Like you are saying earlier today, ben stein on your program said, hey, there are a lot of women that are not investing in the market. There are a lot of people that are not in this market. If the 5 of this market. If i went out and talk to people right now on the street, theyre
grow, we are continuing to innovate and what we are continuing and productivity. I think that is what the runway looks like right now. Neil the economic and in the world. Getting tough on trade. What has you worried is that it could blow up in our face. Well, it could always blow up, neil. Even a broken clock is going to be right twice a day. Stocks are risky at any level. At the end of the day, it is about the fed. Always the 800pound gorilla in the room. It is corporate earnings. At the moment, Interest Rates are at relatively historic lows. We have reasonably accommodative fed. All of which create a very positive backdrop for stocks. I would think that the lines of least resistance for the market are up, not down. Its not going straight up. There will be bumps along the way. Going back in november of 1974,
Business news and analysis. To you . No, let me tell you why. It dates from february till now for eight solid months. The market had rested until 2018. To me, im looking at the market higher because we rested for eight months, we are going to break out. I will say this and reference to your question earlier, most of the time, the market has existed, it is bullish. The reason is, because of a lot of 401 k money and mutual funds in the market, and they go alon along. The chances of the market going bearish is slim to none. It happens for a brief period, and then and recovers. Neil not all the time. Bear markets can last a while, too. Overall. If you look at the life of the market, you are in for the long haul, which people should be for the retirement. That is the point. Neil i want to thank you all, very, very much. You put this one into perspective. I appreciate it. This bull market began, the immediate crisis that existed was 70,000. Now it is closer to 270,000. While back, that is great, right . No, no, no. The investor gets worried. He will explain why. Mark, and something for corrections historically. Im not worried about that. Everyone should watch out below. I dont think bull markets last forever, but i think that we are in a good position with as far as my Retirement Funds are concerned, im happy about it. United states has historically been a safe haven for Investment Peer at that is accelerated over the last couple of years, especially with what has gone on around the world. D, prevagen has been shown in Clinical Trials to improve shortterm memory. Prevagen. Healthier brain. Better life. Plaque psoriasis or psoriatic arthritis, Little Things can be a big deal. Thats why theres otezla. Otezla is not an injection or a cream. Its a pill that treats differently. For psoriasis, 75 clearer skin is achievable, with reduced redness, thickness, and scaliness of plaques. And for psoriatic arthritis, otezla is proven to reduce joint swelling, tenderness, and pain. And the otezla Prescribing Information has no requirement for routine lab monitoring. Dont use if youre allergic to otezla. Otezla may cause severe diarrhea, nausea, or vomiting. Tell your doctor if these occur. Otezla is associated with an increased risk of depression. Tell your doctor if you have a history of depression or suicidal thoughts, or if these feelings develop. Some people taking otezla reported weight loss. Your doctor should monitor your weight and may stop treatment. Other side effects include Upper Respiratory Tract Infection and headache. Tell your doctor about all the medicines you take and if youre pregnant or planning to be. Otezla. Show more of you. I dont care where we go and i dont care what we do just take me with you there are roadside attractions. And then theres our worldfamous onroad attraction. The 2018 glc. Lease the glc300 for just 459 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Show of hands. Lets get started. Who wants customizable Options Chains . Ones that make it fast and easy to analyze and take action . How about some of the lowest options fees . Are you raising your hand . Good then its time for power e trade the platform, price and service that gives you the edge you need. Alright one quick game of rock, paper, scissors. 1, 2, 3, go. E trade. The original place to invest online. I think that the economy is doing better with trump and office then what it was doing. I do see a pickup in the real estate sales. I think we should be fine. I am in real estate. People think that there will be a dip in that year. 52 years, but nobody knows. Neil she is probably right
right. This is all we are doing on your world, the implications of the longest bull market officially recorded today. The implications are here, they are, everywhere. Whether you are a bull or a bear, republican or democrat, conservative or liberal. Your existing home sales dipping in the latest period, and the evaluation of homes and whether that could be a problem going down the road you. Investor called the housing level. I dont know whether he is worried about one at this go around, but maybe he could tell us. Jim, what are you looking at . Hi, neil, it is great to talk to you again. On the surface, we have a booming housing market. Everyone knows that. Houses have soared above where they were in the last bubble. Existing home sales this month and reported this morning, fell for the fourth consecutive time. It took them down to a 42 year low. I think there are problems developing the housing market. One, is the affordability. In 2005, Housing Prices, median family home prices were 3500 above that longterm inflation train appeared we all know that the bubble went out of that. Guess where they are today . We are over 30 above that longterm inflation trend. Neil there are a lot of people with homes that not nearly appreciate it as much as they would have like, out from being under, which is good news for them, but i dont know if i see a devilmaycare attitude, do you . You dont see the devil may care, you dont see the speculation. If you step out of the heartland, i think that the Housing Prices in the heartland in america have not appreciated as much as they have and san francisco, seattle, even where we are in whitefish, montana. Just make him a prices are above where they were at the last bubble peak. We came down real hard after that. I think we are seeing some semblance. I think there is another warning
flag out there and what we call a Housing Bellwether Barometer that we constructed back in 2005 as we were watching for the peak in that bubble. Neil let me ask you. If we have another crisis again to an economic meltdown. And we did everything we did, we are told by politicians who swear on a stack of bibles that we would not do that again. I cannot imagine that if a citigroup or incorporated of america were free falling that we would not come to its rescue. What do you think . That message that we will never do that again goes all the way back to 1982, which you remember as well. Neil i do. An 73, an 74. Every bear market, and we have had a lot of bear markets over the last few years. Every bear market except for one in the past 90 years has taken back one half or more in the previous bull markets game. That means the next bear market could be a bigger one. While we are celebrating this most of what happens in the economy and in the market have nothing to do with the white house. I said that when obama was there, and i say that when donald trump is there. With Liberty Mutual new Car Replacement Insurance that wont replace the full value of your new mom okay we need to get all your School Supplies today. Car done. Hit the Snooze Button and get low prices on School Supplies all summer long. Like these for only 2 or less at office depot officemax. Or make me feel like im not really there. Talk to your doctor, and call 8442342424. This wifi is fast. I know i know i know i know when did brian move back in . Brians back . He doesnt get my room. Hes only going to be here for like a week. Like a month, tops. Oh boy. Wifi fast enough for the whole family is simple, easy, awesome. In many cultures, young men would stay with their families until their 40s. We saw the longest streak of job creation in American History by far. A streak that still continues, by the way. Thanks, obama. President trump the stock market is up almost 35 since the election. But the country is doing actually, very, very well. By just about every measure, america is better, and the world is better than it was 50 years ago, 30 years ago, or even ten years ago. President trump we are now
the greatest economy that we have ever had with the greatest economy in the world. We have gone up 10 trillion in value since my election. Neil all right, start your tweets coming here, because this is where everything hits the road. Is this a trump rally or an obama rally . We have political commentator danny mclachlan, fox news contributor, i always get a ton of grief for this. You say . Here comes the hate mail. I give most of it by president ben per nike, ive always said, you give me 8 years of 0 interest rate, 15 off printed money and 9 trillion ot spending and i will give you big markets and 510 gdp. I give the credit to the people of the country who worked their tails off. I am not so sure that i want to
give it to presidency. But, i do like that the regulation we are getting now and the lower Corporate Taxes, which i think have been a very big help. Neil you hedged your best there. So touche to you. To garys point, without the Federal Reserve forcing Interest Rates down to zero for almost a decade, that did a lot, didnt it . It absolutely helps. I dont know if i could give all the credit to the white house or the president in this rally. Look at where we were in 2008. At the worst part, we had them going out of business. Banks were pumping as much money into the economy as they could. We had faults across the board. When president obama came into the office, it could not get any worse than that. Naturally, this market trend is higher from there. Fastforward to 2016. We have mr. Trump who is running and mrs. Clinton who is running. If President Trump gets elected,
uncertainty, we dont know what his policies will be like, so the market will go down. Complete opposite of what happened. Trump won the election and we have given straight up since there. Im giving it to the policy and the people. Im giving it to obama. Im shocked at how diplomatic my guest have been. I think if you look at this on a pure numbers perspective, we have about 92 months under president obama in this bull market, and about 19 months under President Trump. Clearly, Corporate Tax cut neil he hasnt been in office, 90 months. Some of this is controversial. I have been way too nice in my life. Neil gary, both republican and democratic administrations, when push is come to shelves, and im going back to even before barack obama with george bush. The bailouts with the Banking Industry with gm, they started with him. There was frustration on the part of republicans who realized
that we need the government to get us out of this, and we signed onto it, and they were nervous about it. Did we set in stone a policy where the government comes to the rescue when everything hits the fan . 325, when our 21 trillion eventually goes to 30, and then implodes, i will guarantee you, whoever is in office will get the blame, and then, it will be on the taxpayers back once again. I do recall, at the time, when it came out, you are against it, i were against it, and a few others. But they rammed it through quickly. They think that they are geniuses and heroes. Neil you are right. I remember getting a lot of hate mail from the bush folks at the time. I spoke a little earlier today from fox business, which if you dont get, you really should demand. It has been here since the whole bull market. Nasdaq, former nasdaq head roberts with me, he was talking
about things they could get in the way of this. Jonathan, i want you to react to this because he was talking about political developers they could get in the way of this. Its annoying, the outside noise that could materialize. Palmetto ford, and possibly others. That is under certain future. What you think . I think that the markets, at the end of the day, are going to focus on earnings. It will be the drivers of the market. I am not sure about a 50 year bull market, at the end of the day it was a Record Bull Market or not, what matters are earnings growing. Are corporations doing better . I think the prognosis of that, certainly in the next 12 months is quite strong. Neil what he is saying, if the president survives the scandal, whatever you want to call it, everything will be just fine. We can set that topic of conversation aside. Its all off of corporate earnings and Economic Data we get daily. If they continue to beat or meet the expectations that we see an
outlook moving forward with artists three months or six months, continues to be positive, i think investors are going to continue to feel positive and confident in this market. We talk about trading, and have we missed the run up . This market has a lot more in front of us. Any negative headline that we have seen, talk about paris, china, north korea, we dont even talk about that anymore. Any negative headline that we have seen over the past year, this market has absorbed. It does not mean that this will go up forever, but as of now, it seems that this market is Strong Enough to absorb the momentum. Neil a single issue show. So many thing