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Tactical Allocation Group CIO Paul Simon on where investors should invest to boost their portfolio’s growth.
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-- bigger go home that statements so yesterday tactical allocation group chief investment officer Paul Simon Says you need to go big and go home.
Because that's where the money is home as in the United States Paul joins us now -- Fox Business exclusive from Troy Michigan and when you say go big and go home -- -- large caps here in the US with a big global footprint define.
Exactly we like -- US large cap growth and and US large cap value and I I would even throw mid cap growth into the mix as well.
We just think that large caps have.
You know underperform small caps here in the US for about the last ten to twelve years.
And they've spent the last 1012 years working off a lot of the rich valuations that -- ended up having in the late ninety's and we think there's a seismic shift going on.
And now large caps are going to be the out performers got going over the next three -- five years.
You know you like TT Epson we've got some on the screen there the people complained to capitalize on the ideas that you have but.
Look -- you're watching the situation in Greece is closely is the rest of us are because it does affect our markets yesterday we were down today we are up by fifty points.
So I guess I guess my question really becomes with the debt crisis hanging over our heads like -- sword of damocles how do you tell investors.
The way to make money.
Well I think the way we make money as we stay with quality we stay with a large cap some and I think last year.
What happened when volatility we actually had our bear market the market was down 20% during the year one point.
-- be it very briefly.
And so I think last year a lot of the headlines.
Really -- their way into the markets and we had a lot of volatility and I think this year is gonna surprise people.
And we're gonna have actually it's gonna be more subdued than it was last journal think Greece.
Is -- -- be -- -- situation that that causes a cataclysmic event.
I think the policy makers in Europe are are attuned to the fact -- what happened with Lehman.
And so I think we're gonna surprise to the upside and I think the way you do it -- you stay with large caps in the US and mid cap and the extent the own fixed income.
You want all emerging market fixed income whether it's bonds denominated in dollars.
Or in the local currency and then what you also -- And this type of environment as you own miners in your own gold and so -- look today.
Let's get to that because -- today up 23 dollars it was down yesterday but it when you look at a move that the the likes of what we've seen today obviously we have a slightly.
Weaker dollar so gold -- oil might move higher but.
-- it's now seventeen and 501740.
-- 48 so it instead of buying the physical gold bullion itself.
You're saying by the miners which have not participated in the bowl party over the past year which miners -- me how to how do you decide which ones to pick their many.
Well yeah we would own the GD -- which is a broad based down mining ETF.
That's got the big large cap names of global names in your right they have not yet participated in the in the run up and gold bullion at least the same same -- -- so.
We think it's contrarian call we understand -- but if you go back and look over the last 20/20 five years.
Any time -- had the miners down like they were last year when the bull bullion price averaged up over 20% from the prior year.
The following year the miners have done very very well so we look for this year to be a bounce back here in the miners.
-- -- -- -- -- Bernanke's view he's being very clear mean they recently came out and said they're gonna keep interest rates global 2014.
Right I think it'll be actually much much longer.
And you and you have to own hard assets and gold silver we think -- of the best way to play that.
Are you also like an emerging market ETF EEM we're gonna put all of your picks up on the FaceBook with one point six billion in assets -- growing -- glad to have Peter Paul thank you so much.
-- thank you Liz I appreciate it Paul Simon is the chief investment officer at tactical allocation.
