Jim Bruderman, 1879 Advisors Vice Chairman joins the Yahoo Finance Live panel to discuss the latest with the markets.
- Back to the markets right now. We've got our guest, Jim Bruderman. He is 1879 Advisors vice chairman. And Jim, it does feel like when you look at the market action today, there's a bit of a pause that's happening among investors, Washington clearly taking the headlines right now as we look ahead to January 20. How are you watching the traits play out in terms of politics sort of being at the top of the focus?
JIM BRUDERMAN: Well, we're looking for [INAUDIBLE] not be at the top of [INAUDIBLE]. That's really [INAUDIBLE]-- is [INAUDIBLE] of everybody's mind. We were hoping that after the elections in November, things would be over. We had Georgia to contend with. Georgia didn't play out for gridlock, which markets love. But we're comfortable-- I think markets are comfortable understanding that we've got an executive and legislative branch with Democrats in it that it seems to be working. That trade-- maybe a little bit of a reflation trade in that.
Not such a bad thing right now. But the truth is the markets would love to see this behind us. I don't think they're especially excited about impeaching the president or the potential unrest of trying to marginalize 70 million voters that have a certain amount of respect for President Trump. I think they'd rather see bygones be bygones, to a large extent, and get on with the business of the nation, especially in the face of the pandemic, and the ongoing support that especially small businesses are going to need.
- Yeah, and a certain amount of respect might be underselling that support just a bit, too, after what we saw last week. And when we think about that here, Jim, I mean, in your estimation, is the market perhaps maybe overlooking some of these risks here? What we're going to see play out in the next week when we hear the FBI warning about some of these issues in violence potentially planned across the country, as well as President Trump not seemingly really downplaying any of that when we saw him go to Alamo, Texas yesterday. Talk to me about maybe why some of these signs aren't manifesting in the market right now.
JIM BRUDERMAN: You know, I'll go back to my previous statement and say that, you know, the markets really would like to see a lot of this simply go away. They're not banking in a high degree of civil unrest. The markets are hoping that things get to a sense of normalcy. I think today's vote is-- it may very well be a foregone conclusion. But I think it's going to be the decision that the didn't elect make, more than anything else, that defined what the outcome is. And I think what markets fear more than anything else is continued social unrest.
And the big question that both sides of the aisle and all of our members of Congress have to address-- how do we minimize the risk of that? Obviously, we're a country that is built and relies on a rule of law. And-- and we expect that-- and we expect that everybody is going to be held accountable to that rule of law. But I do think also, that there's a lot of people out there that feel they didn't get their day in court, so to speak, with regards to how-- with regards to how Trump's-- or with regard to how the election ended out. And I think collectively, the nation is looking for some closure on that. When we have that closure, I think we can move on with what's good about the economy, and some of the other risks that really, the nation should have their eye on right now.
- Jim, away from politics and big news on the corporate front today, with Intel announcing their CEO, Bob Swann, is stepping down. And we've seen some moves here in the chip space. Intel, as you see, rallying right. Now we've seen AMD pull back in a significant way. How are you playing the space right now, given the shake ups that we have seen, but also, the geopolitical implications from the global competition?
JIM BRUDERMAN: Well, you know, I think the-- I think semiconductors in general is probably a better question for-- for, you know, some of our chief analysts. But generally in the space, we like Broadcom right now. We think Broadcom is well positioned to do well in comparison to its peer group, and maybe has not seen as much strength in the run up to that some of the others have. I think Intel is going to continue to face its own headwinds. I think this is just an indication of some of the internal problems that they're going to have to address. And really, it's how they address them, and what their go forward strategy is here. But from a competitor standpoint, they're clearly not the company that were 10 years ago.