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Edelman Financial Group Co-CEO George Ball argues investors should choose a strategy and stick to it long-term despite short-term volatility and risks...
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An investor to do in a wild market like since George and what's really driving it.
Shortfall that's why we brought him and he knows he says get a -- stick with that.
George is the chairman and co CEO of settlement financial group's sixteen billion dollars in assets under management we haul them away from Texas to come here and a Fox Business exclusive.
Are right what we know that Europe is this huge issue.
But there was no -- follow through of the rally yesterday one.
Well they're they're too big drivers to the market -- one his.
Europe contagion the Euro and all that -- the other is the US our deficit political paralysis.
And all that mess so -- -- to -- The problem is that there is nobody.
No one no one in the world who knows the outcome.
Which is either going to be.
Quite catastrophic.
Or quite wonderful so -- -- have a market that moves up sharply to the upside or sharply to the downside and nobody knows which therefore.
The X sage -- the old investor like make.
It's basically quite.
To say -- back to PaineWebber pathetic I think you go way back I got I I go back even further than that let's.
-- -- the canny investor does nothing.
They become either an Austrian urge her hedge -- and they have a plan they have the discipline.
And they stick with it somewhat the -- advice to to all the investors out there is if you don't have a plan.
Make one they could before the new year you can be too late by then.
And stick with -- don't try to forecast the outcome of these two huge things that are moving the market just.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Know how you should invest for the long term do that and.
Don't panic either to the upside -- downside.
Europe.
US and then there's this third component of what is yanking these markets around did you say it's the hedge fund guys well you're you're in the final quarter of the year -- half of all trading volume is hedge fund volume.
People like.
Maybe who don't buy -- -- very often we don't move stocks people like you perhaps in trade all the time governor do moves stocks but is the -- hedge funds that do it and as many people know but not all hedge fund managers get paid -- part of the profits they generate a totally carried into -- carried interest to promote.
Generally to 40%.
And that there are those that say I'm not that cynical that they will buy their own favored issues.
In the last quarter of the year in order to make sure that those stock prices are higher and that -- carry is greater because those are the issues they think are.
The best values in the Best Buy.
So you're saying that there angling to get a banker bonus and that of course is because they get taxed at a different rate than you and me we we -- probably thirty to 39%.
The hedge fund guys because they get taxed at the carried interest rate.
Fifteen to twenty at least as Buffett hates that might as a -- at least this year not.
In.
75%.
The last fifteen years markets going up in the fourth quarter -- up that that may be coincidental may be because the Santa -- -- maybe some other reasons to.
But George is telling us he thinks it may be the hedge fund guys are trying to position things were understandably themselves -- not okay thank you George is going to be naming names coming up in stocks that he likes.
-- -- not even stocks but ways to get in on stocks that make it you better up the downside potential.
