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Speaker 1: Thanks for listening to the best of Coast to Coast

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Speaker 1: this highlight from the show, become a Coast Insider and

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Speaker 1: you can listen to the complete program, plus recent episodes

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Speaker 1: about out of body experiences, the scientific search for extraterrestrial life,

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Speaker 1: and biblical prophecies which may have foretold our current state

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Speaker 1: of global turmoil. So head on over to Coast to

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Speaker 1: Coast a m dot com and sign up for Coast

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Speaker 1: Insider to catch up on what you may have missed

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Speaker 1: from Coast to Coast. Now here's a highlight from Coast

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Speaker 1: to Coast AM on iHeart Radio and welcome back to

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Speaker 1: Coast to Coast, Georgian Ry with you. Brad Lemonsdorff is

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Speaker 1: our special guest for the next couple hours of Very

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Speaker 1: seasoned money Manager and Market Strategists is monthly Lymendorff's Market

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Speaker 1: Timing Report newsletter reaches a hundred thousand investors who are

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Speaker 1: interested in his opinion about future market direction to help

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Speaker 1: them make decisions on how they can make more money.

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Speaker 1: Brad also manages a couple investment vehicles what is called

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Speaker 1: the exchange traded is known as e T f s.

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Speaker 1: He's going to tell us about that. They're like mutual funds,

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Speaker 1: but a little different. They allow large and small investors

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Speaker 1: to take advantage of his stock selections. Brad, welcome to

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Speaker 1: the program, looking forward to this. Thank you very much

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Speaker 1: for having me. And your book, of course is called

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Speaker 1: What's Behind the Numbers? And well my partner's book, but yes,

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Speaker 1: that's been a big book for McGraw hill. Soup. Everybody's

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Speaker 1: talking about the market and when it's going to correct,

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Speaker 1: and it keeps going up. What do you say, uh so, um,

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Speaker 1: when you're analyzing the market. Um, it's interesting because what

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Speaker 1: you're talking about are the indexes. So the indexes continue

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Speaker 1: to hit fifty two week highs and they're publicizing that,

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Speaker 1: but if you look at the average stock in the marketplace,

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Speaker 1: the average stock really isn't participating as strongly as the

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Speaker 1: indexes would indicate. Is that a concern. Of course, it

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Speaker 1: is the amount of stops that are participating in a row.

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Speaker 1: For instance, what we've had from the blows in August,

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Speaker 1: so just recently, a push of five or ten up

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Speaker 1: should produce several hundred fifty two week highs during that push,

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Speaker 1: and we're really literally only having a few dozen a day,

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Speaker 1: which is pretty alarming to see such a you know,

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Speaker 1: a thin line up participating. What about the person brant

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Speaker 1: who is not in the stock market at all, listening

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Speaker 1: to the show right now with you and me and

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Speaker 1: saying I'm not in the market, What do I care?

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Speaker 1: What do we tell them? Well, I would say that

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Speaker 1: the stock market definitely creates a lot of push and

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Speaker 1: pull within our average daily lives. Um. I was actually

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Speaker 1: talking with someone recently. They were telling me a story

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Speaker 1: about the crash of eighty seven and how how home

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Speaker 1: they just got married there the home pricing market was,

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Speaker 1: you know, way outside of what they could afford. The

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Speaker 1: crash of eighty seven shook up the country, knock some

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Speaker 1: prices down to where they could afford it, and they

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Speaker 1: were able to buy the home that they wanted. So

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Speaker 1: you never know, but it definitely moves, you know, your

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Speaker 1: life around when lots of moneys are moving in and

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Speaker 1: out of the economy. Right if there's any kind of

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Speaker 1: military involvement with North Korea, any kind, whether it's conventional

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Speaker 1: or nuke, what's going to happen to the economy here? Well,

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Speaker 1: I think everybody will freeze up and there's no question

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Speaker 1: that would be very, very surprising, horrific. Um. What I'm

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Speaker 1: here to tell people is that, Um, what I'm specializing

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Speaker 1: in is when people the people are standing on one

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Speaker 1: side of the room, it's time to walk over to

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Speaker 1: the other, or that another way. Your your parents always

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Speaker 1: told you to leave the party early. But who can

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Speaker 1: leave a party early? So when things start making no

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Speaker 1: sense like they did in oh seven, like they did

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Speaker 1: in two thousand during the Internet bubble, you can bet

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Speaker 1: that you know you're going to get some mean reversion

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Speaker 1: to what we've we've seen to the upside. The great

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Speaker 1: late poet Robert Frost once wrote a poem called the

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Speaker 1: Road Not Taken, Uh, and he he took the one

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Speaker 1: less troubled by and claimed that they made all the difference.

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Speaker 1: That's a little bit with what you've just said. Uh,

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Speaker 1: it's really true, you know. Um. During the o A correction, Uh,

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Speaker 1: the average individual account in the United States was it

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Speaker 1: one of the highest cash levels that that that had

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Speaker 1: been seen in several decades. So when you think about

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Speaker 1: your exposure in your account, you're kind of like talking

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Speaker 1: your book, right. So if you're fully invested, you obviously

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Speaker 1: think stocks are gonna go much higher. So unfortunately, in

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Speaker 1: O eight it was so scary that people just started

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Speaker 1: raising cash and selling stocks when they shouldn't have. Now

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Speaker 1: they seem to be so bullish on stocks. This is

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Speaker 1: one of the lowest amount of cash that the average

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Speaker 1: cash on hand has had, so just from a contrarians

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Speaker 1: point of view, there isn't a lot of room, like

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Speaker 1: a lot of people have already reacted to the good news,

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Speaker 1: so a little bit of bad news can go a

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Speaker 1: long way at this point, just because the glass is

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Speaker 1: so full. In our opinion, absolutely, I don't buy stocks

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Speaker 1: bread because I'm you know, in an industry where there

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Speaker 1: may be a time where you talk about a company

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Speaker 1: good or bad about whatever they do, and I never

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Speaker 1: want to be accused of, oh my god, look what

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Speaker 1: he just did. So I don't even buy stocks. I

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Speaker 1: don't even worry about that. But when the market crashed

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Speaker 1: back around seven and eight, I was looking at a

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Speaker 1: stock because I like to look at them, and this

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Speaker 1: thing went down to a dollar forty one to share

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Speaker 1: and it got up to eighty dollars share. Unbelievable. Yeah, yeah,

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Speaker 1: it just shows you, I'll tell you. As a short seller,

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Speaker 1: it's really interesting. So sometimes being a good short seller

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Speaker 1: is losing the least amount of money sometimes, and there

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Speaker 1: were plenty of short funds competitors of our and such

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Speaker 1: that do similar type, you know, investing on the short side,

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Speaker 1: which is, you know what, we make money when companies depreciate.

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Speaker 1: George Charles jumped in big when President Trump got elected, right,

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Speaker 1: I'm sorry, George Sorrels, I think jumped in big shorting

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Speaker 1: companies thinking that the market was going to go way

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Speaker 1: down when Trump went in. Uh and and he easily

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Speaker 1: could you know? He um? You know, he operates um

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Speaker 1: with a lot of sentiment and contrarian orientation as well,

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Speaker 1: so that wouldn't surprise me. I didn't actually see that,

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Speaker 1: but it's interesting that um. Uh So. Anyway, the average

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Speaker 1: person really misallocates his money pretty aggressively. During the O

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Speaker 1: eight and O nine period, we saw a lot of

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Speaker 1: people pulling back when they shouldn't have. They should have

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Speaker 1: been aggressively buying. And at this point in the cycle

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Speaker 1: we see a lot of people getting very heavily invested

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Speaker 1: when frankly, they should be taking chips off the table.

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Speaker 1: Interesting tech now, in terms of timetable, what do you

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Speaker 1: think brand in what's your best assuming there's no military

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Speaker 1: conflict with North Korea. You know, these are unpredictable things

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Speaker 1: that change. But assuming everything is the status quo, what

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Speaker 1: do you think is going to happen and over what

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Speaker 1: time period? Um, well, we were extremely barished coming into

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Speaker 1: two thousands sixteen when we have that ten percent correction.

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Speaker 1: You know, we never really know what type of correction

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Speaker 1: we're looking for, although it always is scary at the bottom.

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Speaker 1: That's that's that's one thing I think, Uh, experience trains

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Speaker 1: you to encounter. But look, I look out about nine

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Speaker 1: to eighteen months. That's traditionally what my my view is.

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Speaker 1: I don't look out much farther than that. So my

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Speaker 1: opinions definitely can change. But at this point in time,

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Speaker 1: you know, we see a lot of the corporate executives

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Speaker 1: that run the great companies of this country, and traditionally

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Speaker 1: they do come out and they sell their own stock

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Speaker 1: as part of a program just because they're giving a

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Speaker 1: lot of stock to run businesses in stock big company

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Speaker 1: stock options and such. But one of the problems right

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Speaker 1: now is is that you're you're at a seven year

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Speaker 1: high and inside are selling so while the markets are

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Speaker 1: hitting seven year highs and the media is making a

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Speaker 1: big deal out of it. Corporate executives are selling it

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Speaker 1: one of the highest cliff they ever have, and that's

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Speaker 1: also a very you know, it's a very bad negative

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Speaker 1: sign to see that. Listen to more Coast to Coast

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Speaker 1: a m every weeknight at one a m. Eastern and

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Speaker 1: go to Coast to Coast am dot com for more