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NewsEdge Senior Director Larry McDonald on how investors should adjust their portfolios in this uncertain market.
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But let's get to Larry McDonald.
He's with new edge and He looks -- convertible bonds high yield bonds all kinds of bonds.
In a time where people are converted to cash Larry or just simple treasuries because -- so nervous and -- smart sophisticated investors.
What you say is the better investment at this point.
Popular today the ten year treasury get down to a less than one point 8% for ten years thirty year treasury strength.
The two point 75%.
So if you look at the stock market there are certain stocks that pay better dividends.
Some of the big blue chips -- Two to 3% more than ten more than thirty year treasury.
Might not get your principal back with these blue chips I mean this is what I'm hearing people say and the concern about that is that they are so worried they're simply going to just.
Basically assured that they look at their principal back but is that is smart investment strategy right now in this climate here.
If you look around the world the US still right now I think offer some of the best value because.
First of -- our economy came into this first -- healthier shape our banks are in better shape now -- if Europe catches cold.
It may drag our economy into a double dip but as Warren Buffett said over the weekend and it's fed governors mincing -- this the morning.
The US economy looks.
-- much more solid than people think at this point in time where are your better ideas to work better opportunities for parking pass that's not in cash.
While cash is always king but I think that what investors should do is if you look at if you wanna get into this market to -- in stages take a bite of the apple now.
But if something happens in Europe over the next couple weeks we have big -- we've got the ECB meeting later this week at the EU summit.
On the sixteenth and seventeenth.
And the you have on the thirteenth of -- of October.
Get this next installment of creek money that's -- we have a lot of drama over the or so if you wanna in this market get in stages -- peace now if we go lower.
-- to your position.
Specter talking equities -- -- talking high yields are talking and vertical bonds and if so how does one get into that while nobody by just one thing would be of this vehicle leave you by some US stocks.
The loan market United States is that the the high quality part of the corporate.
Corporate structures look very good US companies are sitting on two trillion of cash so stick to high quality corporates -- in the and some of the loans in the high -- senior loans.
Mary McDonald of new it's good to see you thanks -- former Lehman tough guy they're making a lot of money for Lehman back -- Lehman made money thank you.
It's actually and we appreciate it alright when we come back.
