Paying a Premium for Growth

Published on
March 27th, 2019
Topic
US Economy, Trading, Equities
Duration
10 minutes

Paying a Premium for Growth

Trade Ideas ·
Featuring Dan Russo

Published on: March 27th, 2019 • Duration: 10 minutes • Topic: US Economy, Trading, Equities

Dan Russo, CMT, chief market strategist at Chaikin Analytics, sees global growth’s slowdown as a bullish signal for large cap growth stocks— especially relative to value. In this interview with Justine Underhill, he breaks down the charts and provides a pairs trade to play his thesis using ETFs and put spreads. Filmed on March 26, 2019.

Comments

Transcript

  • DH
    Daniel H.
    5 April 2019 @ 05:07
    So growth will rise while GDP is weakening and utilities are rising? The divergence between the financial economy and the real economy must be very strong from CB liquidity.
  • BD
    Bruce D.
    31 March 2019 @ 17:00
    You invest in utilities when the are cheap, and pay large dividends, right now, they are VERY expensive, and a bond proxy like REITs. If you want to play the dumb money, MOMO crowd, go ahead and trade them, but when Ute’s are a leading sector, it is never a good sign for the overall mkt.
    • LC
      Lloyd C.
      2 April 2019 @ 06:59
      Unless bond yields are going to zero and the central banks are doing QE.
    • DR
      Dan R. | Contributor
      2 April 2019 @ 18:16
      Thanks for taking time to watch Bruce. I would argue that there are times when the market does well with utilities as leadership. Look at a ratio chart of XLU/SPY from the 2002 low. I do appreciate your feedback.
  • MN
    Michael N.
    30 March 2019 @ 05:05
    absolute zero, proprietary.
    • DR
      Dan R. | Contributor
      2 April 2019 @ 18:17
      Hi Michael. Thank you for taking the time to watch and comment.
  • JO
    Johnny O.
    27 March 2019 @ 17:55
    XTN has no options and is hard to borrow. IYT better but its option spreads are not tight.
    • DR
      Dan R. | Contributor
      2 April 2019 @ 18:18
      Hi Johnny. I address this in the interview. Thank you for taking the time to watch and comment.
  • MS
    Matt S.
    27 March 2019 @ 12:23
    So in other words, stick with the passive investing model of buying an S&P ETF, go long tech!
    • DR
      Dan R. | Contributor
      2 April 2019 @ 18:18
      Hi Matt. I would argue that it is more like active investing using passive products. Thanks for watching.
  • JA
    James A.
    27 March 2019 @ 11:13
    Good snappy chat. Glad to see the technical push backed up with reasoning
    • DR
      Dan R. | Contributor
      2 April 2019 @ 18:18
      Thank you James.