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B&B panel on how individual investors should handle the volatility in the markets.
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Relatively calm note it's all relative these days after record setting string of booms and busts throughout the week.
Also shouldn't average investors who were biting their nails is a during all these ups and downs be confident about getting to -- into the action again.
For that would bring in our Bulls and Bears Tobin Smith Danny here is Liz MacDonald.
And Kevin -- -- Danny let me start with you meeting get a sell off of the closed -- has to be a positive sign as we look -- -- Monday morning.
In a matter all the machines just went out -- hit I mean this is -- -- really and welcome to the machines this week.
That volatility had been incredible we haven't seen that -- a long time and you -- individual investor still looking at this kind of marketing going -- What am I supposed to do here and and really need to panic and you have to look at the market.
As as just simply reacting to everything that's going on in the world and -- -- a high frequency systems that are gaining each other.
In this volatile volatile space all lot of people are on vacation this week and some of them didn't come back so that's another thing to to keep in mind.
-- -- It was such a hard week that's at the head of the New York Stock Exchange brought everybody beer and pizza sorry.
About that I don't.
Made some coins somewhere somehow did a what was your best during this week.
Well I -- -- IA you know we have the weirdest thing happens after these financial meltdowns and these balance sheet recessions is.
They don't.
And you know cure themselves in two years this is not the normal.
Post recession world for some reason some people haven't got that memo so therefore.
I'm looking for secular growth stuff that doesn't have to do the business cycle the president's there's a job and ETF on cloud computing it's called SK YY.
This thing got hammered about 40%.
Because -- -- says that these scenes just started out miles thousands of miles out.
-- -- If you look underlying this thing.
Which body yesterday and -- followed a more today this is a secular growth story I can live this for the next six months that's three take advantage of the decisions you know -- -- not -- it.
October was down on the floor of the exchange to be looking for chicken and all the -- pizza with a fine He don't compete on the -- I'm a model and it's so -- it got another quarter.
-- tenant that's it -- -- -- point.
I mean there have to be opportunities out there even if even if you're having to deal with the machines driving the prices down and makes the opportunities even more attractive.
And -- I think guy I I agree.
There is that there's clearly is clearly some issues in the economy short term.
But I agree with -- you have to look longer term look for the secular trends we were buyers this week of a couple companies that we thought were very attractive.
Probably keep the first among them would be decent -- -- Worldwide leader in transaction processing I.
They're -- processing close to 10% of global GDP.
-- was transactions are gonna do nothing but increase is that everybody's got a Visa card every.
That every merchant doubt there except that so when you look at it when you're looking for opportunities in -- market like this you what companies that are very competitive.
Very durable competitive advantages to use a warm -- term and I can't imagine anything stronger as a franchise and thesis that we requires a piece of this week.
But we are still a little bit concerned about the overall trends in the in the economy think that there's odds of recession -- somewhat stronger.
Yes but you still wanna be looking for opportunities and buying at a price that pays -- -- take on the rest we think pieces that kind of.
Candidate now.
Palin is Polo Ralph Lauren -- tired -- -- He thought that about half.
So did rioters -- Rockwell Automation we have roper moving higher range I'm going to be our stocks right that's that's what I see on the ticker but.
But honestly again I've I've put another trader who would sit to me were really paying off and have a -- like puppies on the -- as it pertains to what's happening in Europe does that continue through next week as there were concerns about European financial.
Yeah I think it does continue lives and you know we're seeing news reports -- that tot the top money funds in this country are cutting.
Their holdings in Italian French and Spanish bonds so that may be a good indication that we.
The US system is protecting itself without.
The banks are still exposed to the European banks then investments there but I got to tell you something Lisovicz to them awesome whether or not there's a recession.
I look to the big guys on Wall Street -- to bank -- look at these odds.
There's -- lesson of four in ten chance of a recession Goldman Sachs SMP.
Bank of America Deutsche Bank saying that and also what else is promising is that the Barclays US high yield index that's a junk bond and -- loan index did not rise -- -- -- a percentage point.
From week to week just recently where they really spiked higher by twenty percentage points in the 0809 crisis Kevin what about catalysts that -- are you waiting for Ben Bernanke from Jackson Hole in what what are we waiting -- He had acted.
Really turned sentiment to the positive.
Well I think the catalyst there's couple things on number one -- data.
-- thank you tell me I think that's open that yes value is one of the things -- got an earnings yield was the inverse of the PE.
On the S&P 500 which is much higher than treasury yield.
You've got a falling energy price I think is get the oil prices down something like 30% that's eventually gonna filter through to commodity complex.
Give some released Dickinson consumer maybe helped disposable income a bit.
And the overall the overall impetus from fiscal from tightening monetary policy has yet to be felt you look at -- Mortgage rates which are set to crack -- percent.
So -- if you think that they're positive.
So look for those positives but you battle you've also got some negatives thrown in there as well.
For example it's hard to Najaf from month like we've had in August that this that the data we get September's gonna look all that great so it's in this bag look for value look for consistency.
Tell -- what are you looking for here.
Well you know lives.
I I get a hold the position that there is any likelihood after about a third year that you know we have more than likely chance of recession but.
That's simply because it's -- taken so long here I'm looking for actually.
We already have QE3 what when we.
Put this the -- from the Fed saying that we're gonna stand pat for two and a half years.
That's just a new barbecuing -- -- -- duration.
Aspect so I know that the downside is are locked in here I actually like high yield bonds is the other issue right now I -- there's a lot of value in in geyser ever a good balance sheets that I'm -- -- 9% from.
Yeah and I.
Sorry seven just -- -- -- high yield stocks did very well this week -- generally.
Procter & Gamble is another one that pays a nice dividend about over three and a half percent acted very well this week as well okay thanks to our Bulls and Bears hey I.
