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Kanaly Trust CEO Drew Kanaly and Wells Fargo Advisors’ Scott Wren on how the debt crisis facing Greece could impact the markets in the U.S.
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Betting a Greece's prime minister will survive tonight's no confidence vote.
As stocks did surge right at the close -- double -- -- triple digit gains but should you be so confident about your portfolio with many layers.
Still left unfold in the Greek debt crisis joining us.
Wells Fargo advisors -- direction.
Strategists ran.
And -- trust chairman drew -- Alec thank you very much for coming -- first view.
How concerned are you how what will the ripple effects be say July 15 comes and goes and they don't pay and they do default.
What happens to us.
Oh goodness may well that that's gonna be a disaster I think Charlie's right on terms of banking.
That's that's where your real problems going to be is what happens to the ultimate holders of these bonds.
If it is indeed the banks and the credit insurance doesn't pay off you have a really very very serious problem.
First European banking and then you have to wonder about banks here stateside how many of them are -- some of that data or hold it.
And so it's a very important deadline here presently but I think we need remember.
This is one deadline there's another one at the end of the year.
So I mean.
This this -- -- -- he's not going to that is exactly the point even if Greece does not defaults.
This debt situation is not gonna go away right.
I don't think it is -- I think we're gonna -- be revisiting this for years and I think right now I don't expect.
Three Greece to default now.
But I think it is inevitable you know 2013.
Whatever maybe we'll have some sort of for lack of better term a structured default something like that but.
They're gonna kick the can down the road this time I think they're going to give them enough money.
To make it through.
Probably all of 2012 they're gonna do what it takes then but you know this the sovereign Europe's sovereign debt crisis is.
You know it's in the earlier stages and we've seen these peripheral companies countries having trouble.
But it wouldn't surprise me at all if we started this season fears over the next couple years with Spain Italy things like that -- right so drew with -- all of -- hanging over our heads what kind of starts what kind of positions are mutated.
Well what we're gonna do it can Neely is immediately as we're gonna probably enjoy this rally a little longer and we're going to be looking to move out of some of our riskier equity positions -- -- more defensive.
More dividend place coming up so we expect this rally to.
To continue falter because you gotta remember were also rolling off the issue that we finally decided that the soft patch was it was a Japanese supply disruption.
We're we're finally getting out of -- concern over energy prices at least presently.
Because we've come out of the hundred dollar range so all that's probably gonna vote pretty well for stocks.
We're gonna get the vote we want probably in the next hour or so so we expect this -- to continue but it can -- It's going to be enjoy the rally and they get more defensive and -- short right away you are specifically shorting treasuries are -- not.
Yeah we have we have position it was called TBT it's an ETF.
And it's two times short on the -- -- treasury.
Because the other thing that we're not talking about today is the end of this month.
The that Fed's program -- -- treasuries comes to an end.
Were looking out the marketplace forcing foreign appetite for treasuries is beginning to wind -- still -- but not the rates they were before.
So the question is who's gonna cover the next 600 billion.
Dead that's gonna go away when the Fed stops buying yeah not so -- -- preserve our clients' portfolios and fixed income.
We put the short into place because we feel like.
With that supply gone to fire.
I got I drew like I -- -- and -- -- an -- otherwise we're gonna have to end this segment without go ahead Scott.
-- I think we were looking for coming into the year of the market to finish in the 1250 to thirteen hundred range highs around the middle of the year in the S&P 500 around 14100.
You know we've been close to that level were right at the middle of the year I think the second half headwinds are going to.
You know cause the market so we're not what do you think might give us -- one big -- got.
Let's say Praxair they're industrial exposure healthcare exposure so their defensive -- -- the same time.
It's a good stock it's done well it should continue to do well in this uncertain environment this time out before we have the second leg up in the cyclical bull market good stuff guys thank you very much to Scott ran Andrew right now -- have it.
