Finding Value in Equities as Markets Hit New Highs

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Nov. 26 (Bloomberg) -- In today's "Options Update," Bloomberg's Alix Steel and Steve Quirk of TD Ameritrade examine how investors find value in equities as the Dow and S&P 500 trade at record highs in "On The Markets." They speak on Bloomberg Television's "Lunch Money."


You hear things like record highs, highs for 2013 -- where is the value here?

We have a client base with 6 million accounts.

We look at what they are doing and how they are treating these technology needs.

They are still, of course, some of the most popularly traded names in terms of equities and options -- facebook, amazon, all of these names.

What they are really doing at these levels is buying and selling.

We do not see a strong prejudice to thebuy -- toward the buy side or sell side.

People that have accumulated over time are rolling out of it, and the people in it at this point, are evaluating the position and thinking about what it is time to get protection.

Steve, that brings me to the end of the year rebalancing.

Do you think we will see that continue to the rest of the year, or is this year different?

Accepted we will see it continue.

I would also -- i think we will see it continue.

I would also point out that people will hold a position that has had games -- if they elect not to move out of that position, they might just get some protection.

We are at levels where that protection is rather inexpensive.

Maybe by a put instead.

Have you seen this play out?

We have.

Most recently in twitter, yesterday, which sold off, and we saw a lot of puts in november, and in december, and we see a continuation of that, and we think that is a positive.

If the stock does continue to appreciate, they can participate in the gains, but if it turns back, they will have protection.

I am interested in how much cash is still on the sidelines despite the fact we are trading at record highs.

The cash on the sidelines might have been in something previously, and it is waiting for an opportunity or a rollback . i think many people think a whole back of some sort would be healthy if we want to continue the -- pull back of some sort would be healthy if we want to continue the rally.

The pullback that everybody talks about that we have not seen.

Steve quirk, thank you for the insight on the market.

We are "bloomberg west

This text has been automatically generated. It may not be 100% accurate.


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