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James Lowell, Adviser Investments CIO, on the European debt crisis and its market impact, and on how to invest in 2012.
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Holiday cheer on Wall Street today with all three indices on track to end the week in the red but.
My next guest -- -- debts historic moments to upgrade your portfolio joining me now Jim Lowell.
The chief investment officer with advisor investments great to have you on today -- I'm happy to have you on because your optimism is certainly well received here.
Why is now -- -- prime time to buy when there is so much cloudy -- around the globe ahead.
Well the fear is really going from the Euro -- that has been here long but against that grain we've seen our own economy maintained.
Remarkable slow growth not know growth trajectories.
They're likely to persist to 2012 despite the fact that maybe we even do see.
Recession inside the Euro zone and so it's clearly not a time for investors to be chasing.
Hot stocks -- funds -- PS.
There's a remarkably good time to be able to upgrade -- -- equity side.
Portfolios funds ETF that really do focus concentrate in mega cap stocks that are not only demonstrating battleship balance sheets.
But really you have some significant dividend yield advantages over even the treasury market as well as long term capital appreciation that we.
Are unlikely to see I hope again in the next decade.
Jim there's such a fine balance though between chasing stocks and then upgrading stocks and then.
We also have the added complexity of European troubles getting -- in no way of our economic take off.
So how insulated can we have be happily played the game and sign that right balance.
It's.
Well we like use -- strategies that basically would enable us -- long term investors to withstand short term bouts of volatility.
Even extreme bouts and so -- fund that I like -- particulars Fidelity.
Emerging markets total emerging markets it's really -- the first balanced emerging market fund out -- just launched they won't find it.
Rated by Morningstar for another three years until their rating service catches up to -- with the manager.
John Carlson has been managing both emerging market debt and bonds for well over fifteen years excellent track record.
It's an area where we want to stay long.
But we also understand that the risks are -- and rampant and likely to escalate not diminish over time.
Another way to do it is to simply look at a fund like Fidelity mega cap stock or.
-- -- like the Dow diamonds really the biggest of the big companies mainly domicile here in the US -- -- revenue.
He's clearly derived on a global basis so you get both the safety of the US.
But also the reach of the global marketplace when inevitably it does.
Some secure a four picking a broad basket of stocks have broad based.
-- it in a basket portfolio are you against specific stock picking.
-- this environments specifically small cap or even medium cap names because it seems a very bullish on these mega caps as well.
I am bullish on diversified.
Actively managed funds as so long as you know the track record of the manager managing those funds.
I'm also bullish on exchange traded funds that are well diversified so long as you know the advisors track record of managing the ATF's.
That said there certainly are areas for traders to step into the marketplace but not an individual stock basis.
Just take the former -- your -- and zinc got a clear example of wanting to play the game but not the stock it's just not a market that's gonna favor individual investors.
Getting any upper hand in terms of stock by stock chances.
Jim one thing you are not -- encouraging our viewers to buy is gold gold is inching up nineteen dollars an ounce a lot of investors out -- saying that this might be a nice debt to buy into.
-- you say not to do so why.
Well -- I think your point that out on -- -- at least 800 hateful email on a golden bar again and everything else from the gold bugs.
But the reality is that I think gold is a broken trade it was a trade that basically built up on the fear of an absolute global market meltdown.
With the US economy maintaining slow growth not no growth with Asian economies experiencing an orchestrated slowdown.
Gold's really only.
Benefit to the upside is the eurozone and -- -- relating to itself.
I think appeared trait is broken I think gold is a broken trade I would much rather be.
Bullish on the greenback and -- bearish on the Euro I think currency plays certainly for traders perspective to make a lot more sense the speculating on gold.
Well Jim well we know those gold bugs are convincing and rowdy bunch we want -- clog your in box here but we very much appreciate your time with -- -- -- At advisor or investment management.
