00:00 Josh Lipton
Well, American investors cheering new record highs, it's nothing in comparison to the recent run South Korean, Mexican, or even German stocks have been on. Yahoo Finance's Rick Newman has been tracking the moves. He joins us now. Rick,
00:15 Rick Newman
Hey, Josh. Uh okay, great. We have a new record high in the US market, but we're only up, uh what is it? A little over 5% for the year. Yeehaw, I guess that's okay. Uh if you look at global stocks not including United States, so that's all stocks in the world except for United States. There's the chart up about 15%. So the gain there has been three times what we've seen in the United States. Uh and if you just go through different markets, uh almost all of them are outperforming the United States. And this is uh a reflection of what we've been calling this year, the so-called sell America trade. Um, you know, since 2015, uh the the US stock market has been the place to be. Um, it has trounced foreign stocks for almost all of that time. But that's beginning to end for a lot of reasons. We've been talking about, we'll continue to talk about too much debt in the United States, uh from the federal government. That's only going to get worse. Uh, we've seen some wobbles in the US bond market. Uh that's not over and investors have been saying maybe it's time to look at some of these foreign shares that have been overlooked for some of this period of time. So great, we have a record high here, but guess what, they have better record highs in many other stock markets around the world.
02:21 Josh Lipton
Switching gears, Rick, in this week's rendition of Trumponomics, you write about dueling Fed chairs, president sets his sights on replacement for Jay Powell. Where where do we stand, Rick, on the latest with Trump versus Powell?
02:45 Rick Newman
Well, Trump's obviously very frustrated. He he can't get the Fed to cut interest rates. He keeps trashing Powell. Um, although Powell is just one of 12 voting members. So this week he floated this idea. Powell's uh term as chairman uh expires next May. So he's got 11 months to go. But Trump floated this idea that maybe he would announce or nominate Powell's replacement soon, um so that you would sort of have somebody, uh I guess sort of playing understudy to Powell, or maybe dogging Powell, or maybe saying, well, Powell's a chair now, but when I take over, here's what I'm going to do. Um, I mean, on one hand, you know, CEOs, excuse me, uh public companies do succession planning and their shareholders want them to do that. You know, we want to know who's going to uh replace key executives. So it's not a crazy idea in that regard, except that, you know, Trump doesn't want continuity and a smooth transition at the Fed. He wants regime regime change at the Fed. So what would this shadow chair do? Would, you know, every time Powell gives testimony or holds a press conference, is the shadow chair going to have his own press conference and say, well, here's, I'm going to tell you all the reasons Powell is wrong? Our our market's going to start getting, uh, you know, two messages on monetary policy, one from the current Fed chair and one from the future Fed chair. Maybe this idea is going nowhere, but if this actually materializes, this is going to cause unnecessary confusion.
05:05 Josh Lipton
And sounds like the next Trumponomics column, which we will have you back on to discuss at that point. Rick, thank you, my friend. Have a great weekend.
05:16 Rick Newman
Thank you.
