Are we climbing out of an economic hole?
Phil Cioppa examines the trouble with Ireland
- Duration 6:19
- Date Mar 16, 2012
Phil Cioppa examines the trouble with Ireland
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I listen I was gonna is ridiculously flat market these days.
Hilltop was -- this right now managing principal and chief investment officer at horrible financial strategies here again thank you for being here this pre.
-- Pat's day always my pleasure as an Italian and -- it hasn't affected.
-- even in this market we -- you know -- we get 11 -- we need good data we get good manufacturing data jobless claims down ticket consumer sentiments that -- -- -- with the prop.
-- this is the market's gone up over 2% this week it's taken a breather today there's just so much that can happen plus I think everybody's online buying their -- to be honest with you I mean.
Is there either eating their corn beef and cabbage -- there are doing something else but you know over down point 12 right now.
It's just sitting there it's it's not a major deal this week it's doing well the market is still up.
Manufacturing numbers were not as high today that came out as we had hoped right.
But you know there's it's still doing okay -- the market is in somewhat of -- recovery -- still people out there you know.
Calling for recession.
There's always gonna be those -- sayers Tracy you know that as well as I do.
I don't think we're in a recession any longer I think we are climbing out of it I don't really know what we were in because there's different names for it.
But the reality is -- climbing out of the whole things are getting a little bit better now whether the legs are there to keep it going we're gonna have to see we still have a European problem.
And now it's not only Greece but you don't it again apologies to the Irish but Ireland came out yesterday and now they're saying.
They may have trouble with their debt we know Portugal -- and -- that's a problem we know Italy is an issue and now all things China.
China's got to control their manufacturing because they are making too many products.
And they're not able to get rid of them as quickly as they should send that to me sounds like a lot of stuff we can't who -- Exactly because we're so interdependent -- we're just part of a big global market.
We can kinda control are part of the world but just like the segment before we are talking about gas prices.
You know nobody can control that Newt Gingrich isn't gonna get in control -- to two dollars and fifty cents that's a bigger issue it's an international issue.
So we have to take care what we can import export we have to work cooperatively with those nations that -- work with us.
At the same time we have to realize that a lot of this is behind our.
What does that mean for me the investor if I'm not in this market on this in this.
Leave gotta look for that yes that's true but you've got to look for the bright spots OK even Bank of America today is looking good.
I mean it's down just a little it's hurt my little guys have put the price -- and you know American.
-- that geely is doing well so.
What you have to do is measure everything anyone -- Smart as an investor is gonna be across the board you just don't throw your money in financials.
You don't -- your money just an apple you've got to be across the board you gotta create those buckets and when you do that between stocks and bonds and mutual funds and ETFs.
Whatever culture invested -- what you have is -- the steady portfolio what is sectors though that you like going forward.
Well you know the sectors continue to change if -- -- that next Friday could be different but.
Obviously aren't still big on the financial sector I don't think that it's as bad as people think.
I'd probably stay out of some of the big boys but I would definitely be looking at some of the smaller folks that are out there they're regionals the other regionals the locals that are now going on the exchanges.
I also think that you know technology is always going to be a winner however.
-- you need to do with technology is to really look at the company.
Make sure that the numbers on the spread -- are real because so often their inflated because of the popularity of technology.
The thing is -- and we've been talking a lot about tech especially because the NASDAQ is running as well.
We have tech companies that at least have cash on the balance sheets at least are trading at reasonable multiples I mean think they're like it twenty times.
Last year's earnings vs back to do that and I think -- extended eight times earnings right so -- -- the numbers are a little bit more in line.
It seems to make sense well what's happen.
I think there's there's an evening out.
And and things are coming down you know the balloons have been in the air so many times -- different sectors and then there either -- the deflate slowly go where they're supposed to be.
I think what we're seeing in the market right now is the settling down.
Things are where they're supposed to be I think we're gonna see some flat markets I don't think you're gonna see in a dramatic increase to 141000.
But you need this market feels like it's telling people to -- -- -- -- -- It's it could be -- happily write a little pocket after you sit yourself or not sure the legs and we could be flown on air this this rise so I'm not bound to a -- -- this weekend.
-- -- -- -- -- -- -- We should ask your financial advisor -- growth and -- them.
I think you know as I said before what you want to do is really be across the board you don't wanna just be -- one sector you don't wanna just be an equities.
You've really got to place yourself.
All over the place and whether that be investments or variable annuities are even -- But -- my cash.
Kind of flying out of my fixed income -- -- we don't know what's happening with interest rates I don't think that whole lot of anything right now I think sites little bit longer and see.
Because we're just now seeing a revival.
We are revival.
You know the preachers and up their scream and real loud at the -- But we're still seeing some people gathering under the tent.
So this that -- And could potentially have seen its run.
I'm not so sure about that I think -- yet to be seen I don't.
I don't always listen to the -- -- sayers because I find that people really fulfill their own prophecies when they do that.
I think that we need to let the market adjust itself as she needs to adjust yourself.
I don't think that we can tell what what to do -- unfortunate when people come out with those kinds of statements there -- artificially putting on the market something that they see but may not be the -- I'm not talking their book opt into this right so hard -- an average -- -- read through this stuff.
Bill thank you so much for coming in on this precinct Patrick always my pleasure built up -- -- managing principal and chief investment officer -- are able financial strategies.