You're watching...
Federated Investments E.V.P. Steve Auth on the market’s performance in recent weeks, and the possibility of a market correction.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Their clients today it's diva he says last week's market performance was very impressive in the face of really bad news he's here to teach -- how to take advantage of all the Baptist.
Which thirty billion in assets under management the madness is out there in many forms lots of headwinds you're not threatened by them.
Those are healthy and a good market you need need to have headwinds a wall of worry list last week I love the table and we had China -- -- there.
Weak knees and housing be -- Spanish yields backing up which is sort of the risk on risk off trade.
And we'll -- bad news the -- was down half a percent so you know tells me that there's a lot of money on the sidelines.
Wanting to get into this market.
If I had a nickel for every single person who came on our network over the past two weeks -- -- a correction is coming five to 10%.
Yet the market continues to do what it does off and that's climb that wall of worry at some point though don't we have to have a little bit of capitulation.
We might -- what I can tell people as we've been overweight equities here if we did get a five to 10% correction that be a chance to really look up the -- if you're not ready thereby.
I don't know we're gonna get we've had some you know a couple of bad news weeks here and in the market keeps.
-- higher you know I'm looking at the Dow Jones industrials the only two names lower Procter gamble and Verizon so it is a big day for the Dow thirty it's a big day for the S&P and NASDAQ looks very strong as well.
So the question becomes what do you look for with the S&P 50500.
Stocks to could.
Indicator certainly.
We're looking at 1450 as our next target this chart we put at the end of last year -- -- -- -- not far from there are.
We think we're in -- secular bull market I mean I I think the next stopping after 1450 may take -- a year ourselves.
But it's probably something like 165 profit from what when we get closer to maybe 1442.
Are gonna race that market how to work with you guys.
I would -- not gonna raise that target for the year -- we'll probably reconsider its moves a little faster than we thought it would frankly through the course of the year.
We also look longer term as I -- we we've been telling our clients is secular bull markets stay overweight equities overweight but we're not going to be pulling back car horns even if we have.
We're to look at folks that means -- into stocks that's what Steve is in essence saying but make me money now from the European situation we have EU finance ministers.
Who are meeting in trying to decide should we put in more stimulus to make sure liquidity what -- -- -- to to make sure that.
Europe doesn't stumble and fall like Greece already did.
Is there trade there -- what play that well.
That the other news we get out -- the market is that -- prepared finally concede on that they're gonna double the size of that song celebrating all had a -- -- so bright and I think again I think that's good for risk assets.
In in Europe we like you know Germany and points north frankly.
-- -- -- -- -- -- Above the equator -- Because I think you know the southern it comes to stolen for a bit of law headwind here with economic fiscal serious -- but.
We think would use more -- about Spain.
Is it's it's causing the risk trade to either go on -- go off because people are concerned that we're gonna have decreased three here with Spain we don't think that's the case.
OK so you talk about risk equity.
Those are stocks that might be risky in that region Spanish stocks and do you -- Different names sparkle -- there are some of the airlines out of Spain Iberia I mean what you five there.
We're more playing in Spain if you how to play this stock maybe the bank banks -- -- -- and there's a stock we like.
But we're very very selective in -- I wouldn't be buying Spain all out.
I'd rather -- other assets that are being depressed because a concern that Spain's gonna go bring the whole world down.
You know things like it could so Spain -- might be another Greece no don't see -- worse now that no they're not let it happen.
The Germans are are.
Are negotiating with Spain right now basically publicly that's what we're saying.
But the Germans authority established they're not gonna let something like -- -- down Europe.
Steve has some ideas for you for free so how.
