Why You Need to Be in This Stock Market Now: Adams

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

June 9 (Bloomberg) -- Gina Martin Adams, senior U.S. equity strategist at Wells Fargo, and Bill Janeway, senior advisor at Warburg Pincus, discuss the current market and investor sentiment as the DJIA flirts with 17,000 and what’s behind the $17 billion valuation of Uber. They speak on Bloomberg Television’s “Bloomberg Surveillance.”

You've been, yeah, i'm on board, but as we marked 17,000, the cne end to this bull market -- do you see any end to this bull market?

You have to be in this market?

You have to be in this market as long as the price trends are very solid.

You have to be pretty selective in this market.

It will be tough to buy and hold the index as the bull ages and make consistent high returns on the index.

But within the index, the opportunities are still there.

You've got a real eager -- not so much to the retail investor, but the high net worth investor bounced around by this financial crisis.

What is the mood you see when you go out to clients?

Still some reluctance.

When i go to client meetings, what do i buy.

He valuations are pretty expensive.

Again, looking beneath the headline.

It is not just a by-and-hold-the-index anymore.

It is expensive to buy stocks.

I am thunderstruck by the lack of enthusiasm.

I just don't have a handle on that other than this weekend.

It is not like dow 11,000 or dow 12,000 in 2006. the traders i talked to her so depressed even though the market is so high.

Part of it is momentum stocks have been -- have not been holding out.

Of course, we saw the crazy valuation which saw for uber.

We could see a $17 billion uber.

Is it worth it?

The critical part is that it was established by people who were buying a liquidity.

Mutual funds that are market players that get to change their minds on a dime or at 17,000 do not get to change their mind.

If they decide maybe it is only worth 12 million, maybe it is only worth 30 times revenues instead of 60 times revenues, that is the critical issue in this kind of momentum investing in technology, whether you are buying liquidity and you can change your mind or whether you are stuck until the environment changes.

What does it tell you when a startled mutual fund is going that far out on the risk spectrum and bidding on -- and betting on something that has yet to be proven?

When the market-oriented investors came into the late stage private deals on the grounds that they were going to make money on the ipo that had not yet happened, that was the time that we took my entire portfolio and give it to the market in 18 months.

$12 billion.

That is why i'm here.

[laughter] is it lemmings off a cliff again?

First of all, the point that you can't be out of this market, momentum investing is absolutely built into the market process, particularly when you have professional money managers managing other people's money.

If you are not in the market, if you're not following the trend, they will take some anyway.

So momentum investing is built-in and the momentum will continue until it is being reversed.

But second, on the technology side, you also have to remember that back in 99 -- in 1999-2000, uber has identified that we are not through with the digital revolution.

The opportunities to invest and the new services that were unimaginable.

This perspective that there is no limit.

That is what pulls and the investors who think they are marketed.

One of the few people that actually gets what innovation means, we will talk about that through the morning.

Would you buy into an uber ivo with a $17 billion valuation?

It is a fascinating story.

Uber and their ipo at $17 million.

Let's get to monday company news.

Netflix holds its annual shareholder meeting today.

And proposal to separate the roles of chairman and ceo.

Both are currently held by reed

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

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change