U.S. markets closed
  • S&P 500

    3,811.15
    -18.19 (-0.48%)
     
  • Dow 30

    30,932.37
    -469.64 (-1.50%)
     
  • Nasdaq

    13,192.35
    +72.92 (+0.56%)
     
  • Russell 2000

    2,201.05
    +0.88 (+0.04%)
     
  • Crude Oil

    61.66
    -1.87 (-2.94%)
     
  • Gold

    1,733.00
    -42.40 (-2.39%)
     
  • Silver

    26.70
    -0.98 (-3.56%)
     
  • EUR/USD

    1.2088
    -0.0099 (-0.81%)
     
  • 10-Yr Bond

    1.4600
    -0.0580 (-3.82%)
     
  • GBP/USD

    1.3922
    -0.0091 (-0.65%)
     
  • USD/JPY

    106.5500
    +0.3200 (+0.30%)
     
  • BTC-USD

    45,368.07
    -2,079.78 (-4.38%)
     
  • CMC Crypto 200

    912.88
    -20.25 (-2.17%)
     
  • FTSE 100

    6,483.43
    -168.53 (-2.53%)
     
  • Nikkei 225

    28,966.01
    -1,202.26 (-3.99%)
     
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Berkshire Hathaway at record highs is flashing bullish signs for risk appetite: veteran trader

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

All Star Charts Founder & Chief Strategist JC Parets joins Yahoo Finance’s Jared Blikre to discuss the latest market outlook for global stocks and commodities, including crude oil.

Video Transcript

- Let's bring in Jared Blikre for the breakdown of today's market action. He's joined by a special guest, Jared.

JARED BLIKRE: That is right. We've got JC Parets here from All Stars Charts. And I want to bring you in, JC. Let's start with the market overall. You know, I monitor your Twitter feed. And I've got to say, why are you so bearish? Oh, wait, wait-- it's the opposite. Why are you so bullish here?

JC PARETS: Well, when stocks are making new all-time highs, it's probably not evidence that they're in a downtrend, right? And, you know, the truth is, people are afraid of their own shadows. I don't know what everyone's so angry about. You know, the stock market breaking all-time highs, last week the volatility index was pushing 40 with the S&P 500 3 and 1/2% off all-time highs, we've never seen that before. So basically, the fact of the matter is, people are more scared for the least amount of reasons in stock market history. I can't think of a more bullish combination, angry people and stocks in uptrends, I mean.

JARED BLIKRE: Yeah, and you're looking at the commodities market too. I mean, we've got crude oil at a one-year high. I don't think a lot of people thought we'd be holding above $50 here. Let me just get to that crude oil chart. What are you seeing in the market right now?

JC PARETS: I think people forgot about commodities. You know, in the old days, when you and I first got in this business, commodities were booming. Are you kidding me? Oil went to 150. Natural gas was ripping. You know, these Peabody Energy and all these energy and global growth names were monsters. Emerging markets used to outperform. Like, it was a whole different world. And then 10 years ago, everything changed. And it's been a disaster ever since.

So these millennials have never seen an environment that commodities are doing great. They don't know anything about that stuff. I think they're starting to discover it. And us old timers, right-- it's funny to even say that. But the ones that have been through multiple cycles like we have, we remember the good old days. We know that when commodities go, they go. So I think the commodity super cycle, this one has gotten started. I think crude oil trading below zero was what sparked this originally. I mean, I can't think of a better beginning of a commodity super cycle than crude oil trading below zero, right?

JARED BLIKRE: Yeah, you've got to think, that was the market clearing event of 2020. But I know you're also watching financials. We had XLF break into new highs recently. What are you seeing in in the financial space here?

JC PARETS: I mean, you can argue this is the most important stock market sector index in the world. I mean, we don't have bull markets without financials. Financials are still stuck below their 2007 highs. They're pretty much right there. And the way I learned it, the more times the level was tested, the higher the likelihood that it breaks. And if financials are breaking out a 14 year basis, it makes it very difficult for me to be bearish. It makes me want to buy the XLF.

Look at Berkshire Hathaway. It's actually the biggest component in XLF, represents about 15% of the sector. If we're above 235 in Berkshire, you've got to be buying with Warren Buffett. Uncle Warren is going to make us some money.

JARED BLIKRE: I hear that. And he's got a big cash pile too. JC, thank you for joining us here. And I'm going to toss it back to Zack.