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Hefty Wealth Partners CEO David Hefty and TJM Institutional Services’ Daniel Stecich on the Fed minutes’ impact on the markets.
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And -- such let's start with you at this giving it looks like the -- really -- gold today at least temporarily.
Getting acted a little bit I don't I'm not too surprised that -- got this hard -- that is what I am surprises the market's initial reaction offer them -- there's no fruit.
Using I don't think there's any real surprise there.
If you look deep into a little deeper into it maybe -- mean that the economy's on a self sustaining path and they don't need -- -- so it should be good for Iraq.
For the markets necessary or not not so good for the gold.
Well I get short term it was -- -- the markets but let's bring in David a -- for the conversation he's the CEO and co-founder.
-- hefty wealth partners this in the market can't always get what it wants to maybe it's really enjoyed this easy money but at some point the Fed -- to make some type of noise at least.
That things are getting a little bit better here is that how you perceive the markets had a stumble today.
And I -- -- that's right and as we look at the rest of 2012.
There's going to be a paradigm shift of investors looking more fundamentals.
How is the economy actually doing -- stabilizing or has it stabilized.
And our company still going to continue to be profitable line now without this extra federal involvement.
I but I believe today is a little bit a knee jerk reaction again as we as we go forth in the rest of the year.
We're not anticipating Q1 type returns -- up an easy but I at least more volatility could come in throughout the spring and summer.
But all in all it does look like it's it's -- -- a good foundation for some more upward movement in the global equity markets.
David you are you are fully invested but you're a little nervous about this market and and you notice that of course as we all have the -- Is down almost historic -- -- did tick up today would nervousness.
Is it time to may be hedge your bets a little bit of course you can't by the Vick sets an index which you can -- the BXX.
We're sort of track subjects may be hedge a little bit of your money with the -- sex as a guard against some mad danger ahead.
-- -- -- -- -- -- -- Strategies that you can use to hedge out.
What are the things that we do look at and we look at the risk that we see today one is it from now against January -- -- 40% drop in and the -- I -- that perception that really everything's kind of okay.
And and really for the first time since 2008.
Were starting to get this feeling net.
Everything is okay and ironically enough that is one of our major concerns because as we.
Think back -- into the big meltdown in 2008.
Literally a couple weeks before the meltdown everybody said.
Everything's okay.
And an end and then of course that catastrophe Weinstein most investors.
And so right now we do we do see this is -- cautionary however it doesn't mean that we don't believe that.
The path is clear for some more -- know David but I want to press you on this so how do you hedge that that sort of nagging feeling in the back your head.
Well here's what we -- I wish we have a strict sell discipline so I -- if we start to see the prices of our individual holdings start to slide.
Each of our individual holdings has its own unique exit strategy based off the price that that that we have sat.
We start to see that -- we just sell it and not only do we sell it we don't replace it we do not carry a mandate to be fully invested.
As you mentioned we are fully invested today eight.
However.
June of last year we start selling out and it wasn't until.
Early November of last year that -- -- fully invested again.
I'm not so again we've enjoyed this rally.
But if we start to see some things will start blowing our positions out one at a time -- not replacing.
Let me go back to damp down we're not there you're the one in the pets do tell us what was the most surprising reaction in what area -- was gold or oil or just equities in particular.
Where you saw that sell -- today -- right after the Fed minutes were released.
I think more than anything it was equities as as I say I really believe at least in my heart.
That this was expected.
But the reaction came in and came in pretty strong may hit -- hard he kept it hidden until that it has come back later in the day so I would have to say with the equity -- hi Dave have stayed dance -- message thank you very much.
