TheStreet Pro's Bob Lang joins Conway Gittens to discuss whether or not this market rally will last.
Category
🥇
SportsTranscript
00:00Bob Lang is contributor at The Street Pro, and he's joining me here at the New York Stock Exchange.
00:04Thanks for coming by.
00:05Great to be with you, Conway.
00:07So can you describe the market environment that we are in right now, and how does it
00:13compare to Trump 1.0?
00:17Well, the market environment right now, I can't tell you anything but being bullish
00:21right now.
00:22I mean, every single drop that we've had for the past few weeks, certainly since the beginning
00:26of 2025, has been bought by the dip buyers, and that is a great characteristic of a bull
00:32market.
00:33And frankly, until that changes, you have to believe that the market is going to continue
00:37to make higher highs and higher lows, which is our technical definition of an uptrend.
00:43So I think that, you know, bullish until further notice, and I think as the markets reach for
00:50that all-time high on the SP500, which is about 6100, we're almost there, once we reach
00:56that level, it's going to be a decision point to see whether we can take the markets up
01:00even higher.
01:01But by and large, I mean, this market has been very broad in terms of ranges for stocks
01:08to be moving up, and we're seeing broad participation, not just in the technology areas, the MAG7s,
01:16if you will, but also in financials, in industrials, in consumer-related stocks, stocks you wouldn't
01:23think that we're going to be driving the markets at this point in time of the year,
01:27but they are, but they're doing it.
01:28And I'm wondering, you know, we had double-digit growth, not just double-digit, but like 20%
01:32plus growth in the SP500 for like the past two years.
01:39What are you thinking is going to happen in 2025 when you have such strength?
01:44Yeah, I think the markets are pretty much over their skis right now, and I don't see
01:50those big returns happening again for 2025.
01:53Certainly there isn't a precedent for that.
01:56Maybe high single digits to low double-digit returns would be fantastic, especially in
02:02this environment where the Fed is easing up on the gas pedal when it comes to interest
02:08rates.
02:09I think that that is really an important point there with earnings and with the Fed and with
02:14interest rates.
02:15And if all of these are all in alignment, going in the right direction, you could certainly
02:19have a, you know, certainly make a call for stronger markets in 2025.
02:24I just don't see it happening up to 20 to 25% again.
02:28That is going to put the multiple at a very, very high level, probably about 23, 24 times
02:33earnings.
02:34And as we know, if you go back 25 years, back to 1999 to 2000, we had a multiple of about
02:4025, 26 times earnings, and, you know, we know the market crashed right after that.