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Ethan Anderson, Rehmann Financial senior portfolio strategist, weighs in on risk evaluation, Italy and October auto sales.
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US markets and the red sinking on renewed fears of course.
Out of Europe and -- at home 30 wait right now it is now the time to be looking in emerging markets for portfolios except those -- Ethan Andersen and companies.
-- -- -- We're gonna check of the markets selloff going on meet the first see you on today's numbers and what you're seeing are you concerned about markets right now.
Yeah I am concerned about markets right now and it's one of these situations where we've got a very big disconnect between what we're seeing corporate earnings not only in the United States -- across the globe.
And of course what's happening from a top line standpoint.
And you know it's hard to be -- marry those two together for the average investor -- that they can look at the market down today you know some 20300 some points.
And they get very concerned they're saying -- -- the economy is the economy.
Things are looking very good from that standpoint and investors that they have to be able to differentiate between that systemic risk.
And that economic risks risks and I think today what you're seeing is unfortunately more that systemic risk.
You know it than we've been talking so much about what's happening in Greece but we have not mention the work Italy today back to time bond yields.
Are some of the -- watching right now how concerned -- you about -- this is too.
All right I mean imagine you're you're living your house in your neighborhood -- your neighbor you know as we have in financial difficulty and whatnot.
And may not be able to keep their house but they work out a deal with the mortgage company that essentially half of their debt is written off.
That there all of a sudden taking care where it whereas you might be happy for your neighbor happy that you're not -- foreclosure property in the neighborhood it take a look at your mortgage debt gonna wait a second.
That looks like a pretty good deal.
You know maybe there's something there for us I think that's what Italy that the situation -- is looking out right now that a lot of the bond holders are pricing in is that -- -- a lot of these other countries are gonna be looking for a similar deal sort of feared an Italian bond holding taken a look at that situation like.
You know it's great that they came out with a solution here but you know maybe my my holdings aren't as secure as what I was thinking.
Even know what time with you but I do wanna get to some -- a particular General Motors we just on October sales out for -- year over year up 2% one of the weaker frankly.
Of the big automakers but alike General Motors -- -- like Cinemark includes the first to GM why this pick for.
On the general -- it via the US auto -- overall course of they have been through you know that there are tough time as far as our -- debt restructuring goes.
But you know they weren't able to cut a lot of -- to get -- of a lot of those up legacy the legacy debt that they did have.
You know whether or not you think that was a a good deal turner for the American economy are not -- -- not looking debate that.
But as of right now they are lean and mean -- products are better.
On the -- prices are -- you're seeing for vehicles across the board costs are down.
And up from -- a legacy cost standpoint and General Motors that really has a high quality product now compared to the decades that we've seen recently.
And they're expanding into a lot of other markets a lot of those emerging markets and so for that reason we like US -- auto makers in general.
General Motors specifically has a little bit better out valuations and fort and so because of that that's a reason that you see on the screen today.
Now we've got all the numbers so far they've been interesting even Anderson -- and financial -- and thank you for for joining us -- a day like today good to have some ways to look for our for our viewers as far as investments go.
Thank you are right well of a violent.
