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We've got a strategist who says the failure of Germany's bond auction today.
Now is a wake up call for Europe that was a shock the turn out there he is warning stocks now too risky preferring a powerful and it's.
80% commodities and 20% stocks joining us now Spencer patent -- -- investments founder and CEO Spencer thank you for joining us -- here before.
Thanksgiving what are your thoughts hunt started trading session hearing this news out of Germany what does -- say about the European sovereign debt crisis and you west.
Exposure to -- this contagion that we are continuing to -- eight.
It's not good I was really alarmed to see in Germany have such a big issue with the auction and I think it's really a wake up call I it's it's it's certainly didn't go well for Germany but it's not a disaster at this point in time the option was not great.
But I think that there's some safe -- still hear that you can find in the commodity space which is really what I've been advocating here for months is that stocks are just not the place to be -- -- just in the last twenty minutes we saw hundred point download them.
And that's exhausting and and not good for growing your wealth so -- I'm I'm urging people -- to really look at commodities and status.
-- but I'm look at it gold Spencer it's it's stuck in this range it was down there wasn't that as much as the market -- but it was down today about six box.
It seems to be in this range -- about 1660.
Year up to maybe maybe the high seventeen hundreds but that's it.
That's right so gold was down just a little bit today and like you said you know when you look at a Dow that's down 236.
Points and you've got stocks that are losing multiple percentage points having -- just down five or six dollars this.
Really you know looking at a comparative basis is not too bad and and -- you're looking on days like this to find what's not losing your money.
And -- also looking at crude oil today.
It was down about a dollar fifty but it's down just a couple of dollars off of the highs almost from the year it was above a hundred dollars last week so I think that there's some really strong stories in the commodity space that are telling you that.
There's not some Great Recession here in the United States the economy is not falling apart we're still seeing multiple percentage points of GDP growth.
But stocks are not necessarily where we want to be.
All right though Spencer what do you say this stock investors people who prefer stocks would point out T that -- coming up very strong earnings season corporate balance -- Are very healthy you're not getting much for money fixed income either so.
And you're so overweight commodities that a lot of people would be surprised at this point 8% allocation equities.
That's right I think you hit the nail on the head there is that you've got to find where the strongest balance sheets are and so that's why I'm looking for companies like ExxonMobil like McDonald's like apple companies that have a lot of cash on the balance sheet and are also companies that for Exxon has has.
-- commodity related ties tied into the energy space with McDonald's you've got.
Got food costs that are declining as well as -- food place where people will trade down to if you see economic weakness.
These companies of all performed well -- kind of a crisis that we've had.
Starting in -- and and August so I think that it's a Smart place to be if you want to be in stocks and help balance out your portfolio.
But all you have to do is look it's on the momentum names like up.
A Groupon it's down 50%.
From its highs than just we can happen system disaster and and I think that it's this.
Doing terrible things for investor confidence that -- -- it is it's shameful.
Spencer couldn't oil and get a little ugly if if in fact you have Europe going into recession which is a good possibility right now you have China reporting today that they're slowing down I mean.
Where's all that oil gonna be sold to with its is just I don't know if our market is big enough to keep the price up at 9596.
Rise sold -- people have been looking for oil to fall for months and it's just hasn't happened and I think that what you're -- -- a couple fundamental story -- as well as some rumors and and some issues with with possible tensions.
Over on the other half of the world we're seeing a possible no fly zone.
Being implemented over Syria that can be imminent and would certainly be bullish for crude oil prices if not all the conflict that we've had at Libya.
You have five major pipelines that are under attack in different parts of the country is -- have a good hedge against the world.
And then you also have a a strong US economy this -- -- a lot of crude oil so I think that why you could have some weakness in crude oil.
If you have that type of recession you're gonna have a lot worse of the time and stocks than you are in crude oil and interest in discussion.
-- -- Spencer Pratt and.
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