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Significant monitoring this market rally -- markets are -- today but but just for a moment think about this the -- recipe.
Are right now coming off their worst losing streak of the year.
So ask yourself this should -- be repositioning your portfolio or should you stay the course joining me not that Joseph Doran united capital's CEO.
And -- an -- after the hour Oliver pursche Gary Goldberg financial services president.
All right Oliver I -- to go to you first because I know that in the past you've been talking about getting defensive with with your clients.
Are you making some moves are not changing your funds.
Yes so when the market is selling office of hassle the last few days we look at that the portfolio the whole -- clients.
And we look at some of the big winners to ones that we think are more susceptible to come down and we wrote -- into some of the names that are either more defensive.
Or haven't participated in rally some health -- -- some energy names that haven't participated of late.
Because to -- all about managing volatility Cheryl and that's what our clients are looking for.
-- you're gonna mad about Italy also you know -- to that point also with regards to volume we've seen.
Recently some light volume I'm wondering what you're saying in the -- picture right now as -- saying again.
A lot of these major swings which could be in -- contributing to the major -- that back into help lighter volume in the normal right now.
I think we've had to have very light volume -- -- of the rally and and let's just things still is the the average investor is still taking money out of stocks competitive and into bonds.
Most of this rally's been -- by a lot of individuals which is pretty sad.
Given the fact that it's been amazing rally up about 28% since October.
All right so but again that same question -- you all of with -- to volume pulled -- well you know does this alert you at all concerned you yeah absolutely so we've discovered -- looked at a couple of trends number one the run up has been on relatively light volume as have to sell off last week.
But what's really been concerning us as of late and where our technical indicators are kind of flashing born after reading giving some warning signals is that the -- Jones transport sector in particular.
Has been weak since the beginning of October -- at the beginning of February it has greatly under performed.
The broader market and that tends to be -- pretty weak sign in terms of the sustainability of a rally so that's what's concerning us in the short term and why we're.
Still leaning more to the defensive as of two as opposed to the high octane stocks that are out there.
You know and don't also -- if you look at history were looking at the S&P 500 -- for just a moment you know the technical level that we broke through that thirteen seventy.
Was the key level and all of earthwatch -- that double what about you.
-- we -- we do some I think the thing we tell all individuals that we work with us you're gonna see declines of about 10% every -- twice together.
And and we've seen that suddenly a little less in the last CEOs and at what -- it now.
Is -- right as earnings cycle happens to because you have a soft patch.
-- -- good news is we've had very few pre announcements which is a good a good sign.
-- that we priced and a lot of optimism already and so what you typically see is a little pause.
Decline probably I think then.
Where will consolidate because the markets seldom does that at Pique it's that typically get a -- range.
And so -- I think not unusual that we spend a couple of months to startling around.
White -- little -- -- rallying and feeling better.
-- going nowhere really for a little while and just digest the move that we've had a man.
Have poison for -- for the rest be aware I think taxes and interest rates are really the two things that again that overshadow everything else happening in the world.
Well you didn't -- for a quick are you talking about the at this proposal by the president date they at the end of the bush tax cuts basically where dividend income was gonna be taxed as regular and comes out to mean.
But just think yeah -- would think about that it's a tripling in the tax rate on dividend payments if you make more than 200000 a tripling.
So if if you take an opportunity now however it unfolds you probably want to shift away from dividend paying stocks that have not flexibility.
So I would avoid utility stocks where they have to pay their dividends out because they don't have the choice of giving you.
Buying back stock as an alternative which is a more tax efficient way of getting your payment.
So I -- making large distributions of cash on the balance sheets.
I think that area if you are conservative -- -- and happened on dividend stocks that you think about which dividend stocks you wanna have.
Avoid the ones that have not flexibility.
Oliver rob -- we do have financials are gonna -- -- -- you know earnings season is now underway ever gonna be hearing major financials beginning this week what do you expect.
Well I mean financials have -- very very well so far this year we're still relatively cautious on financials we only -- two names Goldman Sachs and JPMorgan.
We are decidedly wrong so far because we found better opportunities to which have kept up almost as well -- financials but you see a lot of downside -- to them.
Some of the regulatory uncertainty is still there are certainly.
You -- market impact there's a lot of different moves going on globally that are likely to place some Havoc with the way banks especially the big banks.
Are running their businesses.
JPMorgan Wells Fargo we're gonna be her from those guys this week John and thanks about the -- judge Iran united capital's CEO.
All -- -- of course -- gonna stay with me for the rest.
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