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Brien O'Brien, Piper Jaffray head of asset management, on managing investments in a volatile environment, and investing in 2012.
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You -- appreciate it thank you can call.
Our next guest as optimistic on stocks -- -- recovery is stronger than the numbers are showing joining us now as Brian -- CEO of advisory research and head -- asset management for Piper Jaffray -- thank you so much for joining us.
Stupid situations crisis in Europe what are your thoughts on you navigate through this DA to date news flow this one step forward two steps back actually seem to be getting out of Europe.
I think the key is is to look at the long term.
If you get too wrapped up with the short term volatility in these markets it's gonna drive any investor absolutely crazy.
But if you go look at buying good stocks at attractive prices you're gonna make a lot of money in the weeks and months ahead.
He continued down it a timeframe for me when -- talk about long term.
And that the Euro -- and gosh do you look at it we're hearing some talk of -- Europe being kind of an interesting distressed debt play right now.
Yes I did Europe is gonna continue to be volatile throughout the year.
We're going to see some time before Europe really get stabilized.
As long as we have a single currency.
Combined with different taxation and different spending insistence that's gonna bound to be be bound to produce volatility.
Armed with the news coming out of there but when we look at stocks within the US especially where we have come out of the economic -- Draw downs that we've experience over the last couple years.
We have real momentum here and we think over the next six to twelve months you're gonna see some real upside opportunities.
Brian -- it's obviously primary day down in Florence and Florida today I was shocked to see in your research that you think an Obama victory would provide the best possible economic outcome.
Do you really think that even for the stock market when he wants to raise the tax on dividend and interest by fifteen to 30% I mean people would buy less stocks would they not.
Well it's interesting when you look at the research.
The historical thinking is that Republicans are good for business but -- only look at the stock market itself.
Historically that Democrats have produced much better returns democratic administrations have produce much better returns.
-- 400 basis points better per year.
Since the mid twenties when Democrats have been in the office in office.
Since vs Republicans.
Traditionally one of the things that does have to happening here is we need to close the spending gap.
We need to increase government revenues and there's two ways do that -- increasing economic activity by getting creating jobs and by.
Creating lower government spending that's one of the things that has to happen -- no matter who's in office she.
And you think that an Obama victory would facilitate those things and I would also go back to the increase in the tax rate on interest and -- I mean it.
The -- to be good for the market how do you address that point specifically.
Look at taxes are difficult issue you have to have taxation to have a government that functions.
When you look at the levels that were at when you look at situations that -- Romney had a 13% tax rate.
Those are too well we need to have some more moderation in the taxing.
-- that takes place across the country I'm not saying that we need to be aggressive in tax increases by any stretch of the imagination.
But we do need to have a bit more fair play in here.
OK so discouraging investment would help.
The stock market I don't know about that but go ahead let's talk about some -- five cents along some ideas -- our investment strategy thinking like this line of questioning that in the -- -- which is great now and you got talent to Brian you know it's not.
All -- easy -- -- energy mainline energy you put your name -- energy specifically good for the individual investor.
Yep I'm -- specifically -- we're like in oil stocks right now.
Natural gas has been a bit overplayed there's a bit too much -- supply in the in the chain in the oil arena are very attractive.
For the individual there's tremendous opportunity BM LP is where we can look at.
Not only.
-- good current income but the prospects for future dividend income increases.
And clearly gonna.
Through the pipeline flows to consumer confidence numbers were disappointed today get you like retail.
-- Confidence number was disappointing yet -- like some of the retail names -- Yeah there's some good opportunity in retail there is some companies that are doing some real restructurings that are extremely positive.
There's a lot of lot of stock buybacks going on.
Good dividend payouts going on so within spot by spot we're seeing specific opportunities I wouldn't buy the whole sector.
But I would buy specific names similar to what your earlier speaker was talking about.
This is -- real stock pickers market this is in a market where you just go on buy it this is a market we buy individual names.
With specific and unique stories behind them Brian thanks a lot.
