Profit from water
Vinny Catalano discusses the latest with the water industry
- Duration 8:34
- Date Apr 12, 2012
Vinny Catalano discusses the latest with the water industry
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They're going to stay.
But he got a lot of with us right now president global investments judges blue -- capital management is biggest day.
I think it's gonna stay I think it's largely a long term side ways.
Top building market right now I didn't even.
Not in a little bit calling it a dead cat bounce today aren't the only home now yeah that's -- -- -- today yeah although those kind of things sure.
I'm much more concerned about whether or not the mega trend the major trend that we're living is topping out or not and I think that we are in the early stages.
-- in the US we've -- elsewhere but we're in the early stages of a topping out process major market top.
That will lead to something pretty nasty in the next few years and then this is a dead cat bounce because it's up sort of it's good traders are usually -- -- traders' market but at the end of the day that the trend is down.
The trend is flat.
The trend is flattering -- -- you're saying eventually it will be down yeah I think that what you'll lose your built -- and that characteristics of a top bar.
Multi month sideways action divergences between and among markets.
And then you get the breakdown at the end and it will be a catalyst and I'm not quite sure what kettles will be that always tends to surprise us -- -- could be the next Black -- Which is what I'm on the lookout for with -- work and I'm doing quite well -- and we have that once before it'll probably happen again while we've got about eight talk I think this.
Naturally it's happened every sand over the -- elaborate and you remember the black -- owns what happened -- of the century I -- like -- matter is that my.
As you write about that but it.
There's a lot of body the things that could it could be and that are pretty obvious rake in -- -- could be I ran it could be.
You know and.
Relation -- my guess is going to be something that comes out of that where the strength of the global economy is which is an emerging markets.
I would not be surprised if something develops somewhere there.
China India wherever and they can seem.
A very small event just like sub prime wise but it's indicative of something that's much more significant and much larger.
That's the focus of the worked and I am doing now that's the focus of the presentations that I give -- these various different CFA society things but I go to give 12 weeks ago when national.
And -- fun and Xbox one but what.
He's -- and then and you saying that.
I mean the take away is something's gonna happen it's gonna pull this market down the -- catalyst OK so then that being said what do I do my money.
Right now what triggered questions right now what you wanna do you wanna be pretty much just -- status quo finale of -- reasonably fully invested in the market good.
I think you wanna start the transition to a more conservative posture.
Then in them in your portfolio exposure but it might mean -- what is this higher quality issues.
You've got a lot of issues that I would probably put apple in this group.
And Apple's a major driver of the markets these days we -- as an issue apple as a as an issue in this regard in that a lot of -- helpful as.
-- priced for perfection check.
Okay -- all right so what are they getting hip -- Yes yes so what you wanna -- managing your portfolio I think it scaled down your risk.
Go to -- quality issues go to less risky issues for a quote conservative.
Issues defensive issues like those kinds of things like what well like that consumer Staples like global utilities.
And then stick with your long term place long -- -- like quarter resources which is when I certainly has huge what you are exactly well you know we're talking more about what -- here today actually okay -- when you're gonna spend over the next couple of decades 22 trillion dollars.
None of the US economy is fourteen trillion.
You're gonna spend 22 trillion dollars.
-- developed economies and developing economies in terms of providing potable water.
A lot of money.
-- -- a whole lot of companies that are and I feel my favorite.
Is not available as a pure play.
And that's the largest in the -- resource area and as General Electric.
GE G megas that.
It's not a pure play so the best thing to do the safest thing that -- gulf a lot of that the GE like about these days yeah exactly wants not a bad debt.
There's really not a bad that in terms of a conservative type of investment bank but.
For the pure play in terms of water resources -- that you go with somebody ETFs for starters PH OC GW.
PI -- we have John Smith coming on later talk about some of those now you physically ETFs.
That's correct OK so where then are you putting your clients' money.
These days well right now again moved in addition to that more conservative mix and owning things -- in -- global consumer Staples area.
There's a couple of other positions and -- -- report clients one of them being global utilities.
This is really uninteresting field expanding global utilities electric in an emerging market correct.
And developed economies so you have you know you -- you're -- Other markets as well as emerging markets and JX.
Is the symbol for that pays -- decent dividend.
Good -- infrastructure building and -- power area not quite as much.
As in the water resources but a good place utility ECB that would as a reference Sachs.
Get -- well one of my talking about -- -- -- -- -- windows and office environment coming up you Larry I think you know we're looking at nastiness is is -- key thing.
If I'm right and I hope I am wrong.
Impact but if I am right and we do -- -- talk secretly hope you're right come on that's I had what do secretly hope that I remember you know it's my job to -- to and -- and I get eradicate.
Yes we do oldest major market top in 2008 and 22009 was -- dress rehearsal.
I think it'd be something really -- remember the government is not in a position to do anything.
You're zero bound on interest -- your Q we need to move 34 whatever up to the eyeballs there's no political will for more borrowing and lending and more debt.
So what happens if when do you see this happening I think -- starting point go through a 2013.
-- and that is an impact could potentially be new president that's correct.
-- -- and then we'll see what the political dynamics of all of that lead to.
Don't know what that means you know we don't know how -- is gonna play out the Democrats -- -- in the senate.
It is stuff like that if you have Romney inherent right and Republicans.
Republicans originally the Dan Clifton from should -- Had said that he thought that the Republicans could win the senate but now I think he's backtracking on that to some degree sort of Democrats are they may be able to hold -- majority.
-- -- a razor thin one.
Okay see you best price right now global utilities water -- more than we do appreciate you're right exactly and I think you know what's a good bet if you -- bonds.
And you get a lot of money into bonds and you've got a nice appreciation like the income.
But you don't wanna sell -- capital gains purposes I don't look at he'd be -- comments -- -- Which is sort Teresa Bob Rowe Frederica can keep it gender and my -- that.
TVS is the inverse single inverse of the twenty year treasury.
-- doubles and triples and things like that and they are -- how they got hit fifty well yeah exactly -- capital confounding effect at all PDF is a good bet.
To make it to offset and to hedge against the positions flying embers to -- -- correct.
I want to one what he's coming right -- -- All of the ones I mentioned before I'm staying right -- already out -- time apple.
I don't know how would you sell out would scale back on apple I definitely what I don't I don't I don't think necessarily look completely out of it.
But I think that.
You need to rebalance your portfolio from time to time if you don't rebalance your portfolio from time to time.
Then the positions where the individual positions are -- whatever they happen to be to get Cadillac they get out of -- and you end up with a disproportionate and I think out and then you become over excellent that's why selling into strength from time to time.
Producing maintaining percentages at the level you wanna so whatever you thought apple should be go back to that level -- -- -- I could -- to tell me get laid out tech and financials you -- way yes.
Canada is that just -- Is financial definitely staying away okay -- under invested but not be a huge amount but let's say 15% of a portfolio vs 20%.
Select tech to rate can't just like exactly wanna be -- if you wanted to.
Usually -- the tech sector these days it is not very different.
Any got a lot of president global investments judges blue marble capital management tell your block.
Well -- this is him.
Eldorado about Blogspot dot com many -- -- and why like Tracey with the law in general about Blogspot dot com thank you thank you.
And getting an advanced -- to learn some yeah and this won't you'll hear a lot about the other music stuff where it's not -- mad panic that getting out of.