You're watching...
Portfolio Asset Management CIO Lee Munson and Option Pit Mentoring and Consulting’s Mark Sebastian on the market’s outlook and Amgen’s first-qua...
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
We wanna bring in only months that he is Buiter chief investment officer portfolio asset management and talk about a ball I got to tell ideally you that you say were were.
We're gonna have good times even in the if the market does go down another 5% because that would get the Fed in gear to print more money right.
Yes you know if you look at the S&P 500 S chart.
With what are called inflation breakeven spreads to make -- look it up what that means on on the Internet but basically.
We in the Fed sees inflation expectations below say one and a half percent.
They tend to do things like Operation Twist they tend to Jack up the Dow Jones with reckless money printing and so when you look at these two factors the Fed's gonna talk tomorrow -- nothing's gonna happen.
But for your stock portfolio you need to know where the bottom is before Bernanke's sort of central his Bernanke put it out and so I think if we see the market come down another five or 7%.
Probably -- that's gonna come in there and start the money machine going along.
At full speed ahead.
Let me jump in here we've got Amgen numbers let's get to Adam Shapiro once again how they do.
Right on the large bio pharmaceutical company coming in with a beaten and -- Liz earnings per share of a dollar 61 cents street expecting a dollar 45.
The revenue picture four billion dollars street expecting three point 93 billion of course Bob Bradley the former Morgan Stanley investment banker.
It's gonna take over there as the CEO on May 23 but again to be gonna be in preparation for his taken over.
Let's get Mark Sebastian and Amgen you know this is a company that sitting up twenty billion dollars of cash the question is.
How will they deploy that cash investors wanted outright.
Well -- obviously but you know it's hard target the stock performance.
It's done really really well and they beat again stocks that are touching their 52 week size.
Should beat earnings and -- coming -- this is just a stock that just.
Keeps going north and -- -- -- it's kind of the same questions and apple where pay apple gives out of a nice big dividend.
Has the stock really performed while some say they -- that dividend yeah and then all of sudden look at what's coming happening -- -- there's.
Positives and negatives.
Dividends you know -- I think we have more breaking news this time not on numbers but Shutterfly scotsman news -- coming -- with what's happened.
Cab -- Wall Street Journal is reporting is that Shutterfly is going to -- Kodak gallery from Eastman Kodak no other bidders coming forward.
For the online photo service from a Kodak according to people familiar with this.
Kodak is of course selling -- there operating in bankruptcy.
But apparently -- -- a flight made an offer to go forward for 23 point eight million.
But again they will be acquiring Kodak gallery from Eastman Kodak.
Liz let us let us bring back -- months and into the picture to get his reaction and -- Jan.
What do you think about this drug company they have a couple of it interesting things going for the not least of which that's when he billion dollar -- -- cash.
You know I've I've always been a hater health -- I reluctantly on Pfizer for the past six months.
I think we got to look at is are they ever gonna -- for the clash I don't think they're going to and I think for them to make strategic.
Buy -- and and I think it's not gonna really get the earnings and we think it's gonna be.
I would say this is more like the apple trade -- is -- Biotech it goes up its momentum -- as long as the market can sustain it.
It's gonna keep going up I would be -- -- -- I would find things they can put all of their money to you so love it.
-- at least a reluctant firefighter mean it's that near at its 52 week Qaeda -- -- is at a very nice dividends looking.
Overall though -- quickly about the sort of macro picture here.
You're an equities guy obviously but -- do you see any position at this point with with.
Somewhat of an opaque future for the next couple of months globally do you see any point in owning certain fixed income and if so what.
Absolutely everybody needs to have some fixed income and I know about.
What's gonna happen a year or two from now when the rates you're gonna like saw people in the gut.
But if you look at.
You know mediocre.
To junkie corporate bonds here in the US I would avoid -- currency risk.
Look for say junk bond bullets they only go out a few years is a great thing Guggenheim has that ticker BS JF that I own.
That only goes out a few years he's got five and a quarter you can find short term intermediate.
To short term corporate bonds they don't have to have a great quality because the economies and OK I think that's where he should have more of your bond portfolio and avoid the Treasury's avoid stuff going about ten years.
And I think that you can still have diversification a great portfolio going for.
All right we have earnings from my company has been profitable for the last eight quarters but the income has been volatile for the past weren't talking about Affleck the numbers are out Adam what are -- Let's go right with the revenue figure six point two billion street expecting six point two billion but on the earnings per share one point 74 dollars it's going to be about in 74 and change street expecting a dollar 65 and David AFLAC incorporated.
Saying that they are raising their sales outlook in Japan but they're declaring as second quarter cash dividend as well as soon as we get this for you we will bring you more.
That is important and they have significant.
Exposure mark to European financial debts so at what -- you look at that this is getting a little nerve racking.
Well you -- but they're actually a more interesting Japan play I think I think it really interesting -- elicited the fact they raised their guidance in Japan.
You note that one of the major things that people and talking about is you know Japan recession -- slowdown.
On if Japan is is the raising -- Japan that's good for -- -- that's good for China.
And it back hardly good for Europe.
You know the -- -- such a huge story.
Am -- it's part of hone in on a company like AFLAC.
Would you really -- -- look at the entire financial sector if you wanna kind of look at kind of the European play if you think the European plane is going to be about one.
By color your stock positions.
I would not be in -- -- plays if you think.
I don't like owning bonds when you can go out and buy options it with low volatility right now and -- your whole portfolio.
I think every customer.
Should be in -- apple -- S&P collars and protecting their portfolio and a market like -- good advice I mean we got them the -- below 19%.
That's not exactly sky high if you consider long term -- -- Y percent.
Paid -- Munson Mark Sebastian guys thank you very much mark we're gonna get back to you as soon as -- would be closes.
Get some comments about what's likely to happen tomorrow thank you gentlemen thank you so much.
