You're watching...
MFS Diversified Income Fund Manager James Swanson on Europe’s impact on U.S. markets and where there are opportunities for investors.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
All right our next guest says that is a good time to buy an after this weekend's European Union summit things could start looking even brighter we hope said Jim Swanson chief investment strategist MFS investment management spending.
The last hour of trading at Fox Business exclusive -- let's pick up on this news that -- -- just getting from Christine Lagarde any pushing.
For another installment that's must be honest -- she's been involved in the discussions from the beginning does she have the fire power still to force the French and the Germans to step -- Up here she doesn't and I'd like to think she did that this is another half step it's not up to the IMF the IMF cannot cure this problem.
There's systemic risk out there you can see it Niro Interbank spreads overnight.
You and everyone saying now -- gonna -- -- to Portugal so we need to see this G-20 do something dramatic this week and I think the market have to see that.
Okay what are we talking about here patrol I've got I've seen a trillion euros two trillion euros what do you -- yeah we've got 440 committed to this special funding facility that they've got their you need to see triple us now -- -- in the market is demanding that and that's the minimum you've got to see who can still must focus now on the United States we are right in the middle of earnings season we've heard from the financials -- -- from McDonald's this morning I'm curious what you're looking at a what you're seeing.
How are you feeling about the big multi.
Multi national big caps we've been seeing apartments I'm feeling really good about this -- the seventh quarter where earnings are surprising on the upside and where's this coming from is coming from the cost cutting that we've heard a lot of pundits talk about no.
It's coming also from the top line we got ten to 11%.
Year over year sequential sales growth out of the S&P 500 in Q3 this is supposed to be the quarter we saw margins deteriorate.
Earnings flatten out we're not seeing that's coming from both top and bottom line what is up.
What about large caps that -- large -- like the large types you they've got international reach they've got very good balance sheets and look at the record cash flows they're trading relatively cheaply.
And they've got capacity to raise their dividends if they wanted.
Would you be more overweight do you think it equities as we did have -- be inserted and it got going on whether it's domestic -- international well I'm the business cycle guy and I would say absent this whole thing in Europe watch this business cycle it is a solid business cycle in that case.
Your mid cycle investor -- or two years since the last recession large cap US quality with multi product lines.
Those of the attractive areas let me tell you about some of the holdings that are actually in your fine dot because you're about 37% equity heavily brightest -- but let's talk about some of the specific names that you're holding.
They plan to continue to -- Well we can't talk about individual names here -- we're switching the portfolios around but the sector's I'm overweight here are emerging market debt high yield.
And we have on a neutral weight in real estate investment trusts were basically in income oriented for -- -- showing some of the top holdings that you have.
Right now they're not belong on -- future changes they might be making but I wish you would tell me.
Up side of property public storage.
So Equity Residential sites shop Rodney duke Cunningham that realistic thing going real estate -- is there and one of the reasons you can see that our portfolio is there's been really no new square footage added to the commercial office space sector -- the retail sector.
Even apartment buildings and were seen rising rents for -- to better Connie this is really good if interest rates stay low.
For the commercial real estate Tim's wants and also the name of my former bosses DiFrancesco by the way if it got expert if thank you very much -- have you back in just a few moment.
