All Star Charts founder and chief strategist JC Parets joins Yahoo Finance’s Jared Blikre to discuss the latest market prospects for global equities and commodities, including crude oil.
Video transcription
– Let’s bring in Jared Blikre to outline the current market action. He is accompanied by a special guest, Jared.
JARED BLIKRE: That’s right. We have JC Parets here from All Stars Charts. And I want to bring you in, JC. Let’s start with the general market. You know, I’m monitoring your Twitter feed. And I have to say, why are you so clumsy? Oh, wait, wait – it’s the opposite. Why are you so clumsy here?
JC PARETE: Well, if stocks are reaching new highs, that’s probably not proof that they’m in a downtrend, is it? And you know, the truth is, people are afraid of their own shadows. I do not know what everyone is so angry about. You know the stock market has peaked, and the volatility index hit 40 last week with the S&P 500 3 and 1/2% discount of all time, we’ve never seen that. Facts of the matter, then, are that people are scared for the slightest reason in stock market history. I can not think of a more bullish combination, angry people and stocks in upward trends.
JARED BLIKRE: Yes, and you are also looking at the commodity market. I mean, we have crude oil at a one-year high. I do not think many people thought we would keep above $ 50 here. Let me just get to the crude oil map. What do you currently see in the market?
JC PARETE: I think people have forgotten about commodities. You know, in the old days, when you and I first started this business, commodities were booming. Are you kidding? Oil rose to 150. Natural gas tore. You know, this Peabody Energy and all these names of energy and global growth were monsters. Emerging markets performed better in the past. Like, it was a whole different world. And then ten years ago, everything changed. And it’s been a disaster ever since.
So these millennials have never seen an environment in which goods do good. They know nothing of the things. I think they are starting to discover it. And our old timers, right – it’s funny to even say that. But those who have been through several cycles like we have, we remember the good old days. We know that when commodities go, it goes. So, I guess the commodity acid cycle, this one started. I think crude oil trading was below zero the origin. I mean, I can not think of a better start to a commodity acid cycle if crude oil trades below zero, right?
JARED BLIKRE: Yes, you have to think that this was the market clean-up event of 2020. But I know you look at it financially, too. We recently had XLF break in at new highs. What do you see here in the financial space?
JC PARETE: I mean, you could argue that this is the most important index in the stock market. I mean, we do not have bull markets without money. Finances are still among their highs in 2007. They are almost there. And the more I learned it, the more times the level was tested, the more likely it was to break. And when finances break down on a 14-year-old basis, it makes it very difficult for me to be clumsy. It makes me buy the XLF.
Look at Berkshire Hathaway. It is actually the largest component in XLF, representing about 15% of the sector. If we are higher than 235 in Berkshire, you should buy from Warren Buffett. Uncle Warren is going to make money for us.
JARED BLIKRE: I hear it. And he also has a big cash pile. JC, thank you for joining us here. And I’m going to throw it at Zack again.