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Premier Financial Advisors V.P. Mark Martiak on the impact of the election on the markets.
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You're in -- Dow Jones.
-- is approaching but before you get ready to sell in May and go away we have somebody who says this year is different.
And he is expecting returns to grow during the summer months mark Marty actually is the vice president of premier financial advisors and he joins us -- good to see you could just see above some sell in May doesn't work and you say it doesn't work partly this year it may not work this year because it's an election year how does that change things.
It's an election year -- what I see happening is when I look back on the past 65 years dating back to may of 1947.
I noticed that the average annualized return for the S&P 500.
During the October to April has been about fifteen and a half percent.
And maybe September has been about nine and a half percent however I think because it's an election year -- there's more transparency.
With the with the policies that are going on with the Federal Reserve as well as.
The presidency and I like what's going on in the market right now so I think it would be very I think the big mistake if investors didn't look carefully before they just decided that they have to believe in this may sell in -- and go away.
-- -- for taking that a step further and you're saying buy in May.
If if you sort of buy and may is is the theory behind that more of the of the the idea that perhaps -- there will be so much volatility that the in the end you'll see some real gains.
Indeed that's true and in fact that in my historical analysis I've noted that.
There is a a lot of the volatility twice the amount of volatility that usually occurs in election years.
And so you have to keep that in mind every investor has to be aware of their risk tolerance -- time horizon and so forth.
Now if your contrarian so many different ways not a lot of your mr.
doctor about.
You also are big on rates I am on the they're real -- even though we see these very -- -- -- about real -- coming out this week why are you -- -- reits right now well I think -- to date the -- index is up about three and a half percent.
So it tells me that real estate financings.
Are at that are getting done and and getting done quickly and the prices that valuations are very very attractive very very simply as -- -- -- -- is has beaten down on the reits have a good buying with to a good buying life I have great.
And that's exactly why I tell my clients that they shouldn't.
Be prepared to sell in May go away because.
They have to be prepared to be tactical with their investment portfolios and their investment decision.
It's -- where do you see other opportunity aside from the reits.
Where is that next big thing.
Well technology.
Is obviously doing very very well so I'm telling my clients that they should look at technology.
And for how Eric brought to say just technology -- you've got the cloud you've got hardware maker software makers are -- out of the whole social media issue that some people see.
Although perhaps wrongly so as technology.
I think I like technology across the board and -- So I don't recommend particular client companies to my clients but I love the sector because the growth and the -- try to -- -- and though a little bit telecoms.
Telecoms had a nice little pockets of that part of technologies you're big on correct I I consider Telekom a different sector -- I like mobile I looked more of mobile's technology like cloud computing in the technology space.
I like everything that you just mentioned in technology the Telecom -- like it.
Because -- -- paying dividends it's a low beta stock compared to the some of the other tech companies.
What I don't like -- materials right now I think materials has been beaten down.
Even though in spite of the fact we heard good positive earnings from Alcoa to kick off the quarter.
And in recent quarters we -- get those positive earnings reports from Alcoa and we had eventually some lackluster earnings but.
This quarter in particular over 50% of the S&P 500 companies have reported their earnings and -- beat their earnings per share estimates and the revenue.
Let me just say Alcoa had a fantastic quarter and and that they brought along -- -- -- a lot of other.
Materials and industrial stocks in the wake of those numbers but.
Looking at a China slowdown perhaps and what we -- -- slow down 8% growth I cannot be a slow death of that happening but of does that concern you.
It always concerns me that is one piece of news as well as what's continuing to go on in Europe.
That could make investors.
Feel less bullish about the market.
And and I prepare my clients by suggesting that we shouldn't.
Look away from those events that could a car.
In China with slowing GDP growth and in fact even today today's businesses in terms of economic data suggesting.
That were -- 2.2 percent GDP growth and watch for the US.
We could be prone to hearing this kind of economic news here and in China as well as in Europe.
And that's pause for concern so.
There will be some volatility we sort during the first two weeks of of April however the last two weeks we've that we finish up nice very quickly we start with the election and with the election as a matter who wins the presidential election is terms of how the market -- well I wouldn't say it matters who wins but.
Each party represents certain ideas and opportunities certainly for the markets and the markets like transparency.
They want to see transparency so we'll have a better idea as we get from the third quarter of this year and will understand.
And this -- be priced in for the markets.
Mark Martin thinks that I'm mark thank you for having the diocese is -- premier financial at.
