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Jim Boothe, manager of the Nuveen Santa Barbara Dividend Growth Fund, weighs in on the price of oil and its impact on the economy and markets.
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Thank you.
Alright -- -- is just one of the many issues leading to recent market volatility our next guest is working to find opportunities in these difficult times Jim -- -- -- manager with new -- Santa Barbara dividend growth fund.
Their manager there Jin.
Right often that you heard what the deputy energy secretary had to say about oil prices I know that I'm Britney in your notes you've alluded to oil prices really.
Weighing on corporate growth on consumer growth as well what sort of your take given what's happened over the last 24 hours with Ben Bernanke and now today's movement well.
I'm -- to share my expertise that's actually.
We'll help investors in the economy over -- longer run.
Economies generally peak when oil prices get high.
That kind of slows down the economy that's what's happened the last few months oil -- hasn't got high consumers spending is constrained and about a this probably twenty dollars a barrel is speculative in that hundred dollar barrel I think they wanted to -- kill the speculative nature.
Then then then that is counter intuitive overseeing the market was off the valves off over 200 points on what you're telling us is good news for investors -- had -- connect.
It's not good today.
I would say second half of the year you're gonna see a rebound that.
The market went up straight probably since September of laughter.
I really thought this was a temporary correction.
I was and expect mean you know some.
Government -- intervention in the oil market.
I think the -- situation constrained production for awhile and and if they took it on their own measured basically.
You know -- -- speculation in oil price.
Our rate will now -- we do have this government intervention we're seeing a big time drop in oil prices at least for today does this change your investment thesis I know your focus on dividend.
In comes.
Producing stocks.
What's your outlook and house how should investors position themselves.
For the rest of the year.
Fortunately I'm underweight -- -- do have some energy exposure to did quite well -- here.
But there's been a boom in natural resource stocks the last five years energy materials stocks that.
That's that's not sustainable my -- opinion particularly fair.
Healthy economy.
So I think this is kind of temporary glitch you know the market really -- -- -- in my opinion.
Dividend stock.
Generally are less volatile.
And that's probably for investors who want to be in the equity markets if you feel more comfortable they don't go up and down as much as typical.
Equities -- -- Specific sectors that your liking out of -- growth place.
American bullish on industrial stocks I don't think people have appreciated -- Renaissance the US.
Companies have done restructuring and opportunities for them as more oversees -- their sales now come oversees emerging market countries.
So we have overweight and industrials.
Jim birth of new dean thank you so much for being here started me on the spot about -- -- about the oil question that's on and you know it made a lot of sense given what's been happening at the markets and obviously -- doesn't have different.
