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-- on the timing is everything -- my next guest is waiting out the rest of the summer.
Before putting his money back to work in the market he's bearing his money in a little chest in the sand on the beach not doing anything until.
All right here's Jim swaps and so you're you're basically saying -- nothing in August and September at the moment.
Well the seasonal are really against us were in a choppy market none of the uncertainties we've witnessed last two -- are gonna go away between now and October so I don't think you have to rush out if you do.
Go what I call the new defenses and and go for yield -- type stocks okay.
-- finds -- -- tight -- of these -- stocks for -- here at the ones not just the ones that pay dividends of the free cash flow growth to back it up because you want dividends to keep working for -- at night while the markets gyrating around and you want the cash -- increased.
Well you jumped ahead to the new defenses and we should really sort of revisit the old offensives which is what people used to jump into and those.
When you look at -- you say those for the utilities and people like utilities because they got deal so what kind of yielding stocks aside from the utilities we talked.
What also there's health care in that group and then there's Telecom look at the Telecom land lines going -- people aren't using land lines and more and then you've got to health care sector under the gun sights of this new joint committee in congress.
Utilities do fit that pattern -- good yields there.
But they've done really well they've held up during this better than other stocks am I the last standing person with a with a plan outlined in my house back.
I think you -- there's probably a couple others -- Kids while Hitler today right and they're using their their cell phone as their watch they don't Wear watches -- -- That story watchers say look going down -- what you see any screaming buys even though you're waiting.
Well I'm waiting I think there's a lot more turbulence to combat screaming buys I think -- in various sectors.
That companies in the US are coming home with -- report cards that show -- across the board and mom and dad are saying -- -- your room it's not good enough.
I -- the markets punishing the stock market and yet these companies are showing increasing margins increasing profits increasing cash flow and less debt.
What else can they do.
Your diversified income fund is not only up year to date which is a harder trick but it's of course up year over year it's up about 6% year to date.
Up 13% -- for year how you've done what your biggest holdings as we look at some of these names.
You've got Simon property a lot of reits JPMorgan vornado Boston properties Pfizer it's it's an eclectic mix it is and it.
And -- and we've got a lot of bonds in their two on the got high yield bonds and sovereigns and her emerging market debt done real well for us.
But the reach a pretty interest came here again we talk about defensive on the Fed same -- -- interest rates are big part of how people value these real estate investment trust.
On the far right part of that screen that precipitous drop a guy like you who's who's running a fund like that what -- -- like.
-- how do you avoid just saying what what of cash out now.
It's gut wrenching yet you go with your -- to go with your instincts what fundamentals really matter and we look at fundamentals and trying to look.
At this portfolio from the bottom up -- net cash flow strong balance -- senator.
That the S&P downgrade of US credit obviously shook the markets didn't check -- you felt that the US should have been double A plus instead of current.
Again on the credit analyst anyway and so I always do my own work and figure out they can have their own ratings but I need to know what those -- standards are and I -- This is paying back to -- yet it's the biggest tax paid their tax collector in the world and it's the best credit still that doesn't -- at the down -- it's -- relative.
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