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Penn Financial CEO Matt McCall on why many investors, even overseas, see the U.S. markets as a safe haven.
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Well we've seen it before when investors get nervous.
They stash their cash in a much safer place and surprisingly in a new survey many global investors are shifting their assets to our market so.
Have US markets become a safe haven Matt calls the CEO -- financial group -- -- -- the show.
Are you surprised by -- -- I'm not surprised because let's look at you know what your options really are.
The options are best here United States invest in Europe which as we -- -- headlines every day -- falling -- I can invest in emerging markets in China daily talk but the hard -- are growing as fast anymore so he -- look at all your options and yes the US actually turns out to be the best reward to risk opportunity out there well and you know for a long time during the worst of the worst.
Aaron US treasuries despite the fact that got downgraded that was the choice for a lot of investors out there -- They actually get downgraded and more money went into the treasuries which is almost opposite things they illiteracy you know used -- look at in the grand scheme of things of -- know where's the best place right now to put your money without taking that risk because there's so much headline risk out there's so many black clouds hanging over that.
Why why ability Europe wide going to China -- a potential risk is that they -- -- fall apart so the US now.
Even though -- the growth isn't there we've had.
It's still stable were still largest most productive country -- the world and I think investors can they -- view that.
Our right only 8% of our investors -- believe that the economy is gonna grow or grow at a decent pace.
In coming quarters and that's down from 29% in March what's going on here.
But there's a lack of confidence I believe -- though there's a lack confidence in investors and Americans in general.
That really -- The growth is gonna continue because if you thing about it look at -- -- unemployment rate eight point 3%.
Really if you take -- 2.3 -- dropped out 2.3 million jobs -- last twelve months it -- eleven point 3% so.
We mean.
The numbers may be getting better but as Americans we perceive things is not getting a bit because they're not getting any better.
Then we we've said well you know what I mean don't wanna be in the market that's we're seeing more money kind of go to -- stable high dividend paying companies -- -- And also in the cash -- seen cash levels go up at the same time because people are nervous people are nervous and they don't believe the government numbers at this point they think.
These things are cooked up and they're not really -- where -- When you look out though I mean everybody is working is still trying to -- best and still wants to play the game because they want to retire someday.
What do you like internationally if you if you're not thrilled with Western Europe and I certainly get that lots of troubles where would you put your money.
Well if you -- -- stay United States isn't as -- -- high dividend equity ETF which is a fund.
That invests in a basket of the -- some and a.
Highest paying dividends stocks in the United States and a lot of those are going to be a more stable consumer Staples -- utilities healthcare.
-- at three point 7% dividend you look at that chart Jerry -- extremely well it's.
It's what -- that what's called the risk on trade it was going to risky assets this may lag a bit.
But when times aren't as good and you -- and these are markets down big missile typically do much better -- you do more stable and you bring in a yield of three point 7%.
Well above the two point 12 point two that the ten years paying out of the opposite of that chart we just saw on Citi shares which was plummeting Dow up okay.
So China Brazil where the countries like best.
I like Brazil I and an inexorable trend if you look at the PE ratio of the price earnings it gives you valuation of look of a country.
They're both actually trading below the unites states of the same time the gross much higher the United States up.
If you took the name -- -- just looked at the numbers both Brazil and China would be the better investment.
And actually the -- that the less risky investment but it's not a happening thing you don't China's numbers -- talk about numbers that are fabricated yeah.
I agree and then the growth has gone from 10% down eight a half percent even Italy 6% of still three times the United States so there's actually ETF out there that invested for the EG shares.
Merging market consumer ETF is very how polluted but -- that's gonna do that's gonna actually look at some of the consumers -- -- the middle class.
That us federal money that you -- -- emergence of the middle class and emerging markets.
And the spending money in their home countries invest and retailers autos.
Food and beverage based in Mexico Brazil China all these countries.
And this -- been outperforming the overall emerging market index greatly so if you -- actually drilled down be little more aggressive I think -- one area look.
All right I'm keeping a lot of money accounts stuff I still believe in our market that -- that makes electric -- and it really a.
