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LPL Financial Investment Strategist John Canally on strategies for minimizing the risks to your portfolio.
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-- -- -- the investment strategist for a company called LPL financial.
Has 316.
Billion dollars in assets under management he says he's got a three step.
He's with us from Boston in a Fox Business exclusive.
Up first of all -- -- know what what number job or should we really be working on.
Well I think you know we we got to the low end of the year for stocks on our -- so at the end of last year we we forecasted -- eight to 12% gain for.
Stocks -- -- year week we got there Democrat in February so we started to do you risk then.
Adding a little cash getting a little more sector neutral but no on one jobs report.
If -- like looking at the baseball standings today and saying that the Mets are gonna win the World Series you know they they are three you know.
But there's a long season today I -- -- Well I don't know I don't -- -- Turkish.
Well yeah I can say the same with the ball memorial DNA we had a -- -- with the long season.
-- and it's a long season and you have a way to go we're not but not only baseball -- for jobs as well and so.
I think that the march jobs report was that was sort of a step back.
But I wouldn't be too concerned with just one report if you look at the first quarter and -- and job growth is still pretty decent it was the best.
One of the best quarters for manufacturing in the last thirty years so.
We're we're looking pretty good there and on jobs I think it's just one off related to the normal.
That's that's what really -- the other second Obama ticket.
Sure that's really important 37000.
Manufacturing jobs were created on on Friday in the Friday reports so I'm glad you brought that up there were some silver -- -- back to reducing risk.
You've got some special steps where you advise people how to do that let's start with your number one.
Moving some money from stocks to bonds what kind of -- relief because a lot of people believe the treasuries are little bit of that money.
You know I would agree there and we would agree there you know -- be risk reward in treasuries is not very good right now so what we did was we took a little bit.
Of a step out the respect from.
Buying some mortgage backed bonds you get pretty much the same.
Credit risk you get a little bit more yield and that's sort of cash buffer if you will one step out the risk spectrum so that was -- -- step one.
Step two is -- we kinda -- some more cash overall in our portfolios.
You know because we did get to the lower end of our range for the year.
And then step three was getting a little more defensive with -- sectors.
Gold going out of small cap warrant a large cap REIT reducing some of our risk overseas and bring it back -- -- -- sort of the three things that we've been doing.
Now consistently for for the past probably 6810 weeks.
And you know -- waiting for this pullback to happen we've gotten here over the last couple of days but it may be a bit more -- -- what what's.
Favorite sector right now -- on the sort of that hidden opportunity that Jim -- you know what I was in early on that.
Yeah you know we we we've been what we we like technology we like industrials.
Those two sectors are favorites were right now of course the earning season starts later this week and and we'll have to see there we continue to get.
Decent guidance out of those two sectors were -- more concern lately with the the the energy and materials sector you know oils that back down there -- you know 100 dollars.
There's a big meeting this Friday in -- rant about their nuclear program that could definitely -- by the way but.
But right now tech and industrials our two favorite.
Friday that the markets were closed at least equities but the dollar was still trading and it took a hit.
You tell me how you perceive that and how you then maneuver around a weaker dollar if you think that lasts.
-- you know I think -- saw that that the dollar has largely been declining for.
You know forty years since we went off the gold standard we have to periods of dollar strength sustained dollar strength.
In the early 1980s as we came out of that very deep recession and then in the late ninety's.
During the tech boom everyone of them want to be in the US so that -- the -- although we think will continue its its downward slide.
Unless we have another big flare -- over and -- that would cause.
People to look for safety of those safety -- occurs and do you professional -- is John Q do you gonna put money and any currencies and if so which want.
We we do.
Occasionally take.
Risks there in and currency right now work try to consolidate in in to more.
Dollar based investments so for example if you're in.
Materials -- -- in in energy you're you're kind of betting that the dollar's going to decline.
Pretty sharply we think it's more of a flat market for the dollar.
John -- -- LPL financial investment strategists area is sharing his secrets on how to.
Your portfolio right now.
