Why Won't Stocks Go Down? Too Much on the Sidelines

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Aug. 12 (Bloomberg) -- Citigroup Chief U.S. Equity Strategist Tobias Levkovich discusses the markets on “Bloomberg Surveillance.” (Source: Bloomberg)

Their star player.

It is an impressive contract.

We have a contract with the stock market.

It just won't go down.

It will go down a little bit.

There is just too much figuring out how to get on the market, but they missed to a great degree.

Investors who have been waiting for these opportunities to buy have not gotten many of them in the last five years.

Every time we pull back 3% or 4%, there is new money.

Let's bring it up, courtney, if you would, just part of his thoughts here in august.

Earnings are essential to the market pattern giving dpe ratios are unlikely to expand.

That is a buy the dips mentality still seems appropriate.

Where do you buy the dip?

-4%? nobody can predict it.

When you have these particularly sharp dips in about a week and half, you see the money coming in.

The most important question -- you have the jobs listing numbers coming in.

When will the blind needle start to move the other way?

If that happens, you probably have to realign some portfolios.

Yesterday, ira jersey, three point 5% -- he is still standing by that?

We said he was wrong, and he still -- another saying he does not know what it will take for bond yields to rise.

At this point, where are you?

September next year is when rates start to move higher.

Some pressure is starting to build.

What does that mean for you?

It means that yields will move up but at a modest way.

We're looking at three point 5% next year.

If you look at the forward swap contracts, where is the 10 year bond yield implied next year, the market is not anticipating a huge movement.

I hear you say there is no reason to be scared, which is what you are saying.

We have an economy that seems to be finally getting settled.

If you make this rally, should you now buy in?

We think you should be buying inconsistently.

You do not throw all of your money in any time.

We're looking at another 7%, 8% next year.

We will have an important conversation this half-hour about this high-yield flow.

I want to get out in front of that conversation.

The high-yield panic or angst, is a good for your world?

It is not good for small caps.

There is at least a relationship between small-cap performance and high yield.

I think so much money is in the bond market, and so much money salty spreads tighten and tighten, and it will continue to tighten.

The first sign of trouble, people are saying let's lock in my profits.

Which do you like best?

I still like tech.

I have liked it all along.

Waiting for your tech to go on.

The boring tech?

I think you have to be careful getting what we call old tech, new tech.

If you are selling software into a mobile application today, it used to go to a traditional pc.

Is that new tech or old tech?

It is hybrid.

You have to be careful.

I do not like buying the stratospheric pe register.

Facebook, twitter tech -- i am not a big social media fan.

You will not find me there.

The jolts numbers come out today.

People are hiring, but there is still no wage growth.

There is a great chart that one of my colleagues, maxine -- you take a look at his stuff, tom, and he shows the unemployment rate and the employment compensation index highly linked.

If you look at the hiring intention survey, it is a wonderful 12-year lead indicator on employment.

Love that.

We have got a twitter question.

Yeah, we do.

It is relevant given what tobias was just saying, in theory, incomes have gone up.

Are you spending more on your vacation this year?

Tweet us.

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

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