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Mayflower Advisors Managing Director Larry Glazer, Loomis Sayles & Co. V.P. Kathy Gaffney and TJM Institutional Services Senior V.P. Daniel Stecic...
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Eric light -- mayflower advisors managing partner also Kathleen.
Gaffney Loomis Sayles and company vice president and portfolio manager -- both of these people you -- found that trying to sort of believe.
They both recommend Europe right now I guess.
Larry.
Even Warren is staying clear Europe right now but you go win where's specifically would you go into Europe.
Share.
Well again despite the troubling trend in the economic data that we saw the past few weeks particularly in the jobs right.
Today's market action here in this country is a good example of how resilient the markets event.
And it showed that the markets are largely pricing -- a lot of the bad news particularly when it relates to Europe over the weekend.
And I think that's a good sign that's a sign of stabilization markets hate surprises and what's coming out of -- is not necessarily surprise.
We talked to investors they want income -- looking for income and look overvaluation.
No place in coming valuation better than it is in Europe.
You need a strong stomach need a long term horizon.
But a weaker Euro is good for European profits European multinationals.
Have significantly higher yields in most cases more than 25% higher than the US equity counterparts.
And dividend and that if he eased significantly lower in many cases 25% discount.
To the US counterparts.
-- valuation it is the contrary call but it's an opportunity for invest -- Kathleen name because as you know -- people piled into the perceived security of US government debt today the ten year note.
Well below 19%.
So so what does that say to you about that -- go -- Flight to quality that the people who are calling for -- to -- -- -- bond bubble if you will to birthday it just isn't happening.
No it's not there are people who are still just looking for safety and they're paying up for it and they're paying quite a price I think.
So what does that say to you about the concerns about year and the investment choices people are making because.
As -- is telling us a lot of people do you -- investment opportunity in Europe.
Not everybody if you look at the US spot market correct.
Yes there are definitely some investors who are looking for safety.
But I think there are also investors who recognized that there is an opportunity.
To be had because the fundamentals are improving and while in year -- that politicians have become.
-- the masters.
Of kicking the can down the road.
There are some great deals in corporate bonds there was -- be specific if he can Kathleen what kind of corporate bonds Euro corporate bonds you look at it.
Well -- that what's going on in Europe is is sovereign debt crisis it's that it's the government debt burden.
But the economies are gonna slow but you'll still see.
People using their phones turning on the lights and so we're looking at high quality corporates in that Telecom and utility area.
And the yields there are comparable with what we're finding here in the US high yield -- Isolate house and it back -- doorway when your thoughts on -- -- outlook hinge on whether that's veteran fixed income wasting it.
Sure why I think -- -- -- some great points and again what we what we be key here is we don't wanna confuse.
Bad data coming out of government's -- governments governments that are imaginary that are in -- with -- that corporate sector in fact corporate sector is very healthy globally in -- you have many multinationals that are competing.
All over the world and they have a global footprint they have to be domicile Europe's of the gonna be penalized accordingly but -- want to seize that opportunity when the markets -- Kathleen points out that creates opportunity.
Not just a corporate -- equities but also -- corporate.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Why is -- you think the debates is down volatility is a little lower according to events today even though we -- this mess happening over in Europe.
Why is the earlier -- Larry pointed out earlier I think the market is digested this and that's a good thing.
The volatilities and -- is wildly it is still there.
And you know something in -- for.
Some unknown event can switch it off but right now looks pretty good.
So what do you think about we do start seeing inflation Yang and the dollar you know continues to weaken -- -- -- turn and oil prices isn't really has -- break out right in oil and other commodities right.
What -- turn around anytime soon.
The oil -- he has turned around a little bit right now and he broke on technical level at a hundred dollar level and -- growth is just scaring the heck out of your market but the more important thing right now.
Is a stability.
I won't stability so long -- somewhat stability.
In in the Middle East right now with Iran.
So on a supply demand basis there was a report out today that.
Supply is -- to exceed demand by 813.
Thousand barrels per day -- thirds 2012.
Given today's production levels so -- Morgan Stanley.
