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-- -- -- Well my next guest says that diversity.
Is going to be indicate when it comes to investing for 2012 joining me now -- Anderson senior portfolio manager.
Friend in financial.
Diversity yes but you know eat them what many investors have learned especially -- that they just invested in the S&P about -- for ten years and -- lost money.
That they've got to be more specific with how they structure their portfolios stock specific what do you tell your clients right now.
Right now the main reason we're focusing on diversification is because of all the different headlines you are seeing we get asked okay.
Is that market going up this year we had found -- -- -- -- to quote Jeremy Siegel if the world doesn't that's a wonderful time doing -- -- -- from an economic standpoint we're seeing growth in the economy we're -- low valuations from that from an equity standpoint and make sense to be able have have money in the markets however.
We had a systemic fears that that are out there that we're just mentioned regarding China Europe what you know what the US is gonna do with.
With our budget 2013.
In those that have a negative impact in the markets -- people last that's what pressures gonna take place over the next twelve months.
We're not sure how you come back that is with diversification.
You should be completely out of the market you should have some equity positions in there as well as some bond positions.
But in this day and age is lot of other things that you can involved in the portfolio as well.
Are we talked that you do just mentioning about -- -- some aspects of commodities -- a lot of the battles are having issues but there's other ways to be able to access commodities.
As well as far as you know we know the White House responds and -- specifically -- that thinking that with currencies is the.
There have been I'll do it all the commodities if you don't feel like you're actually.
It yet nobody was to have a barrel oil sitting in their apartment let me get to some stock specific ideas from you and particular I was surprised to see.
Did you like General Motors right now that stock.
Got hit in 2011.
A lot of concerns right now that's -- got -- has the got to deal with and the government is still involved in the company why GM.
-- it feels so we're -- General Motors but you know what from a contrarian standpoint that's not that it's not necessarily a bad way to go.
You're looking at a company of course that went through bankruptcy has now come out so a lot of that debt that they were -- with before they had gotten in the way of them being being able to have a profitable operation going.
And we take a look at the products that the putting out there's some top -- GM vehicles they've consolidated on the product lines they'd increase quality overall.
And they're look they're -- very lean and mean they have exposure all all around the world there are big players in China the Chinese automotive industry they're bigger players in Brazil.
But aggrandizement at Europe without which we're looking you know when your chart that's -- was at 39 dollars and change at the beginning of the year if you -- ended GM and the taxpayers did you got burned on that one.
I mean where does it -- -- like a yearly target for you does it get back to thirty dollar.
He would you know it's it's certainly not the net -- not out of the out of the question yet you looking at where they're trading at less than six times forward earnings so even if we do -- -- economic softness.
And you see sales not come and -- strong as what they have you're looking at less than six times forward earnings if your if your long term holder General Motors has to make a lot of sense right now I don't know what other thing that they -- throughout this bankruptcy process.
They are cash rich they have in quite a strong balance sheet right.
Anyway you like technology the other technology -- they get ahead.
The NASDAQ got -- in particular in 2011 do you think that there is that the technology sector is gonna rebound in 2000 well.
I think the technology sector looks pretty good right now in this environment.
For a few different reasons first of all people are at have been you know talking about a lot lately taking a look at you know to keep an -- flat screen TVs decreasing.
Everybody in the brother seems to have an iPhone right now so the question is what's lacks for technology.
He thing to remember there is that the consumer isn't the only purchase -- -- technology.
Commercial purchases of technology are a big part of what that sector does and you have all these corporations that have put off you know -- it.
But off expenditures are put off hiring they've put off you know -- some of their infrastructure and they put off.
And improving their technology.
And out there are starting to open up their wallets and and I spent some money on labor -- -- that infrastructure and whatnot Gosselin spent some money on technology and we think.
That this sector which looks very good from a valuation standpoint.
Should benefit from that and also these companies learn from what they went through ten years ago when the tech bubble burst there also very cash and it very cash heavy.
And are able to withstand any type of that negative -- negative drop in the economy.
OK if it -- again about ten seconds or -- but you still like to sell these group was up 11% last year you'll like it now.
I like utilities for for most people don't want to be able to ease back in the market and diversify their income stream -- but we don't see utilities.
Knocking the cover off the -- from depreciation standpoint.
But if -- taking a look at the yields are you getting from treasuries and some of your other fixed income holdings you wanna diversify out a little bit.
We eighty to wait a little -- back more -- in the equity markets utilities make sense of probably not a lot of brought out potential here.
But that being said -- the stock market does take off this year utilities are probably going to be lagging just like they normally do.
Well what the parliament debated sectors -- -- -- discussed this week on Fox Business -- but says its belt will see what happens even Anderson agreement financial thank you been happening here.
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