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Weiser Capital Senior Portfolio Manager Michael Gault on why investors should stay cautious with their investments and how they should adjust their po...
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Well the European Union's new rescue plan to balance the -- -- sinking banks is giving them follow the polls -- Green light to charge ahead.
But Michael Gold senior portfolio manager at -- capital management -- -- -- despite today's huge rally.
Investors still have a major incentive to remain cautious He joins us now -- we're gonna see again good to -- you are coming if I thank you well.
We know what the market thought of Europe's rescue plan their -- -- What do you think of it and particularly when you think of the fact that one of the banks that was in trouble Dexia a French and Belgian bank was essentially nationalize absolutely well it's -- -- I think.
What we take a step back and we look at today's events I think we can draw comparisons to the European announcements similar to what was going on in our country now.
End of 2010 our addiction end of summer of 2010.
When the whispers of QE2 were beginning to fly around but.
What's interesting is that we're and we're having to we don't know what this plan's gonna look like we have no details about this plan right now it's just a commitment.
And so to.
He enthusiastically behind this commitment without any details is a little premature and art in RS estimates so are you cautious on US equities because of that.
We absolutely are I think word the macro picture we're seeing the macroeconomic.
Influences rattle through all all markets.
Domestic and abroad on the equity side -- How are you gonna make us money here I mean clearly you could be an all cash.
Or you could try and get a little beta -- -- -- know that's a great going to get some rest no we.
We promote with our clients at maintaining cash balances throughout the course of their investment cycle and right now the conversation that we're having with our clients is how do we take advantage of the my depress prices right now.
And one way is that we're looking to remain cautious although take advantage is identifying.
Dividend paying companies mainly.
Here in the US.
That are going to be able to pay investors while they wait and also gives investors the opportunity to use that income stream.
In many different ways it in their lives or even reinvesting those dividends as markets continue to go down as a natural dollar cost average what about the bond equivalent of dividend payment which -- Muni bonds which pay out on a regular basis would you go there.
We think that there is opportunity in the Muni market especially -- valuations relative to what taxables are doing of course depending on the on -- client's tax ability.
But if your target -- your objective really is growth I think there's certainly gonna be limited opportunities in the bond market.
Especially as you compared to stocks and valuations to that.
I just if it if I'm looking at companies.
What do you think shows promise here is there a sector that you like or.
Names within a sector sub sector where you say you know there there is a chance to going there at the moment.
They pay dividends utilities you can argue war or some of the other pharmaceutical lanes where people are still going to -- their medicines plus get the dividend.
Absolutely we're looking at companies and the pharmaceutical side and did -- -- on the device -- -- where the Medtronic and Becton Dickinson.
Again companies that have consistently increase there there yield in their dividends to their investors.
But also we're looking at the consumers right now we're still cautious and -- and more favorable to the -- side but certainly.
We're looking at companies like Wal-Mart.
We're -- companies like lows again companies that are stable companies that I have continued to pay their investors to wait for growth especially in uncertain times that we faced continuous.
Michael gulf good to see you Michael thanks very much for continue to appreciate it thank you so much.
Just.
