Investors are always ‘nervous’ during an election year: Gregg Smith

Plenty of red ink, left hand side of the screen. Dow's off 120 and Nasdaq's coming back a bit. It's now down just 42 points. Greg Smith with us this morning to look at the market. All right, Greg, welcome back. Good to see you again. Good morning. In the first 100 days of this year, the stock market performed very well indeed. Now, historically, does that mean the rally continues? Yeah. Well, good morning, Stuart. I think for investors living in an election year, they're always at ends and always very nervous. But I think the 1st 100 days of the performance of the S&P this year actually bodes well for the market for the rest of the year. And here's why. And we'll talk a little history and a little statistics for a minute. But going back in time in an election year, anytime you see the market up in the first 100 days, 93% of the time the index actually finishes in the green for the year. There's been three other times in history, three other election years in history, you had nineteen, 9676 and 28 where the market was actually up greater than 10%. And those were great performing years. So, so far this year, we were up a little over 10% in the first 100 days. I think it bodes well for the rest of the year. If you want to go by what history tells us, music to our historical is well done. Greg is AIA bubble. Does it show any bubbleistic tendencies? Well, it's a good question, Stuart. The the the back of the thumb that I always used to have for the market was anytime I would see a company put their name on a stadium, whether it was Enron, Adelphia, CMCMGI, go back in time or I had my taxi driver asking me if he should buy more Qualcomm, as was the case 25 years ago. I would always say we're, you know, could be in bubble territory, but I think many Wall Street professionals today would say that we're not quite, you know, this phenomena doesn't quite deserve the bubble title yet. It's not itsnot.com land, is it? wellitsnot.com land. I think that's a great comparison. You know, it's hard to find the right analog and making a comparison, but if you look back to 1995 to 2000 to the.com bubble, you know, the market went up for five years and in the last two years we had incredible increases in the NASDAQ and that was in the face also of Fed, Fed tightening. And but I think the market today is more akin to 1995. Companies are more tethered to fundamentals and I think that, you know, we're we're not quite in bubble territory, despite the fact we have Mick Jagger style groupies asking the NVIDIA CEO to sign their chest. I'm sure you get that on 6th Ave. every day when leaving the students Endless. So it's endless. Greg, give me 30 seconds. I know you mean 30 seconds. Why you like DraftKings? Lots of people talk about drafting book. Let's just start with the business of sports, whether it's F1, whether it's Kate and Clark in the WNBA, or the increasing rights of professional Major League teams, as well as the associated broadcast rights. The business of sports, the breadth of sports is growing and it's becoming increasingly more and more popular. It's bringing more women into it, again because of the WNBA. And I think DraftKings is becoming the leading player. They have about $37 a share. Where's it going? I think we see this trade it back at 50. They just completed an acquisition of a great company called Jackpocket, which was the leading I lottery company allowed people to play the lottery on their phone and investors in that deal just got cashed out last week. And I think a lot of that stock is for sale now and we'll get cleaned up and we see the stock trade high draft kings to 50 says Greg Smith. All right, thanks, Greg. Thanks for joining us. You welcome back.