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Mitchell Eichen, MDE Group Founder and CEO, on where to invest today to find consistent returns.
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Amid all those continued volatility in the markets in -- next -- is offering several picks.
With more stability and consistent returns -- -- -- as the founder and CEO of -- group he's ranked consistently as one of Barron's top 100 independent financial advisors and he joins us now.
Miss looking at your notes com.
You'll get the market to be range bound in a -- tight range why.
Well because I think there's so many over hangs on the market right now we know what they are there really nothing new which is the budget is the unemployment situation is consumer situation.
But we've got some -- burgeoning inflation I don't -- European situation been resolved -- a long -- to go these major macro overhang anyone of -- snap at any given moment so.
We have to get through some of these things before I think we can move concern not climbing a wall of worry not don't think so I think we've got to get through some of these things if we can move consistently higher and could take months or could take a year could take until the next election cycle I mean -- -- -- gonna be a tough spot.
Bill for a while so I think we have to find a way to invest consistently.
And predictability of provide clients with you know few surprises.
Mean we're just talking about corporate earnings and Charles mentioned that there's such a -- -- do you not think that the corporate earnings season is gonna be a way to catapult the markets considering.
We're expecting some pretty good numbers all across.
-- -- could be but you know a lot of times you know an earnings game is a little bit -- you know they lower the bore -- in the intentionally -- beat the boys you have to do little cynical.
No I think when it comes to Wall Street the corporate earnings game.
They opened at the end of the day you've gotta have economic growth and we've been growing at one point 8% and it would grow one point 8% with his -- of stimulus has been put into the economy.
You know we're not gonna break -- Well that's not gonna be ads occurring anytime soon -- in the meanwhile we're we're kind of waiting the chorus -- you how do you suggest to your clients that they make money.
Well I think we have to have multiple return drivers there's still ways to make money on the income side in the market we like new dean high yield it's a Muni bond fund that has a 50% non rated ought to doesn't mean John could just need to find convene meetings has -- the S&P ratings -- -- about 77 have percent to trade 7580 cents on the dollar.
So it means you don't want to like we turn and it's not going to be correlated with the stock market we like go.
One way let's go stop -- from -- the because.
Muni bonds have been in the news people are afraid of them people them dumping them is this considered -- high risk play.
You know.
Who should be in the is right now look this is not for this -- -- -- grandmother's Muni -- OK you look at this is -- and hybrid investment we don't -- put it in -- Muni bond market.
You know which is really use super risk control bucket we put this in a bucket.
That really we'll have a quad play equity of clause -- risk but it's not gonna be inequity related -- -- clearly taking credit risk that this is the fun.
That holds about a thousand different names you would -- -- wholesale.
They'll default scenario for this -- really -- tank and is very well managed and again.
He buying predominately non rated bonds which -- more volatile right but it doesn't mean the joke just means of buying the expertise moving to pick them.
That's because they're not necessarily being conservative you are being aggressive but you're just being diversified exactly where else are are you putting your money we like we've always like the master limited partnership space because it's like -- -- pull both New Jersey Turnpike they -- you -- gas through.
And his collector told.
We like steel -- 6% yield.
-- -- tax efficient and then it has the option for growth so again it's very differ return drivers all about not about oil and gas prices could -- stream it's just about.
-- -- -- -- -- -- They also have a market neutral -- -- in a lot of people always ask about this site.
How can -- make money in a sideways market is this how you go about it well NT FS market neutral I think is a great -- we've owned it for years.
It was up about 55 and a half percent -- up a five and a half percent over the first half -- -- -- would have tiny fraction.
Of the market volatility so these are guys that lol look at the -- close look at the -- the Google to -- -- the fundamental the partly.
Technical and the based would you go along and don't short the plane arbitrage game they've been doing -- -- do well.
You know while I get -- I am glad you came on because.
You know very few people talk about how to make money in a mostly sideways market the very -- trading rates we have to admit that's what we've been all year so far.
Well -- I think we do is we have a strategy that basically takes ETFs and options OK so -- ETF we'll give you -- you return pattern but.
That's not a great place to be in the Baltimore it's what you want to do -- want to bend that we turn created a symmetrical return.
So big guys and they -- -- -- all over the ahead president here's what I -- -- saying go but but would that we're gonna have the cutting there because book we really appreciate what you've done so far again.
Because we do a lot of people who do wanna know how can we make money it's I was smart enough planes -- and we appreciate -- commitments I can really appreciate it thanks look at.
