Also in this playlist...
This transcript is automatically generated
Certainty in the eurozone tracking down the market today.
We've got a money manager and CEO who says the outlook for the market remains pretty bleak through at least the first quarter of next year.
But drew can Alley still have some ways for -- to make money gives the CEO finale trust -- Good to -- -- thank you for joining us first of all before we get into citizen here is how you diversified diversification is really key to success on Wall Street how're you diversifying your portfolio.
Well what you want is a miles erotic portfolio you have seen a pick up volatility -- -- And that's what we're doing it can -- And so you really wanna be thinking about risk adjusted returns in a marketplace like this and you -- it all for diversified portfolio.
So think about just three big segments of a -- You wanna have stocks you wanna have fixed income and bonds and you wanna have alternative investments -- traditionally these three segments.
Will lower volatility for your portfolio to give you that GM.
See pick up ride.
-- with a possibility of miles -- return down the road before right now we wanna stay very very conservative well.
We know how loudly those engines -- -- -- -- -- -- -- -- -- closing bell but I'll tell you something true you know.
When you look at what you like as far as equities let's start -- part of it didn't.
Dividend play nice we just had a -- last week a set of -- dividend plays because.
Sometimes they're not necessarily that promise in many cases but you're shaking your head.
Yeah I mean that the dividend coverage ratios -- they are very very good with.
Corporate balance sheets where they are their capacity to pay these dividends and in fact expand them is very very good.
And a lot of these are multinational corporations.
-- all of the world.
There of their earnings profile is very very strong I mean this is where you want to be right now in this market place.
You don't wanna forget emerging markets I know it's -- allows a year for emerging markets.
But they still promise the best long term growth prospects you know globally and so that's where you -- -- be right now drew and his equity.
Since you are still kind of bearish on things what about gold that we signed up a little more today not not big dip but down another five bucks right is is it worthwhile to have a percent and gold.
It were still holding our positions although we've held off on buying it for quite some time now.
And we're looking for an entry point here fought for for for -- viewers is is.
Maybe one a look at the gold miners may have your body in the metal at a little discount in the -- these days.
But you wanna take your time on adding to gold these positions I mean think about gold if you're a buyer in India and they buy a lot of gold.
You know as expressed in rupees gold is very very expense what's what is your -- 4% cost what is your re entry I think situated one I.
I would say you have what we're looking for can -- you know we've had quite a bit of volatility in the whole commodity complex haven't way.
And perhaps we're gonna see some more margin requirement changes in commodities and we would like to see some -- requirement changes before we enter or maybe something below 15100 bucks before we've really get.
Interest in gold this point.
Drew can we get back to the fixed income part of your ears and third third third hi there which part of the fixed income just plain Vanilla US treasuries or do you go with something that'll give you more on foreign yield.
Yeah a little more -- can be found in the double want total return fund it's it's agency backed mortgages and not agency backed mortgages bought it very steep discount it's got an excellent yield.
Its really its total duration is much shorter than you would think it would base that you really don't have it.
Exposure to let's say a rising interest rate bombers is much as you would think he would so that's a very good way to -- play that sector.
And then moving on into alternative investments.
You can look at a global REIT.
There's a invesco global reach pays about 4%.
It's invested all around the world.
And it's mostly commercial and retail property so it's not exposed to the multifamily volatility you might via.
Concerned about -- somebody who's not calling for Santa Claus rally right now and not even into that first quarter 2012 the -- what happens.
In the second third and fourth quarters can we start to see some.
Bottoms being really found and some moves to the upside in the overall market picture.
What is all about price isn't it so I think as we move out of the first quarter of next year organ a lot more about certainly.
Our domestic elections seen and in what the prospects are becoming up with the growth agenda.
Perhaps you know some more -- will turn over in Europe and we're gonna find out how all that -- plays out.
But but you know you really want to look for.
Apart all that where you see the bottoming out in the whole financial sector all the banking stocks.
No matter where you look they're all week our -- talking about on the t.'s leading up to this.
You really wanna see that the financial sector find its bottom in some way to work its way out there certainly recapitalization.
Is what we're looking for well have.
We've which today were a bottom for those who are bullish on the -- at this -- if our financial strain nice to see -- happy holidays.
Thank you all -- --
Filter by section