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Mark Tepper, Strategic Wealth Partners president, on quantitative easing and its impact on the market, and how investors can make defensive choices.
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Eat -- said mark tepper strategic.
Our president joins me now defensive how -- we be doing.
Yeah I mean for our clients right now you know we're really focused on making sure that we're investing in higher dividend payers.
You know when you're looking at a slow growth economy you're not going to get as much of your total return in the form of appreciation say need to get it somehow some way.
-- they're gonna come in the form of dividends high yield bonds they're still a little bit of value left in investing grade corporates but you really want to avoid the cyclicals right now.
What -- utility is what about consumer Staples -- those defensive plays for you because if you look at.
The ETS and how they have traded in particular with utilities year to date down about 1% that's kind a little bit of a risk on story is that over.
Yet -- this is exactly what happens when countries engage in quantitative easing programs we saw this here in the United States when we went through QE1 in QE2 still.
The market rallies while the programs going on and is -- soon as it comes to an end.
You give that a lot of the gains -- the LTR a lot of Europe was essentially QE3 so what that coming to an end.
Yes it's time to get.
More defense -- some utilities consumer Staples XLP that's up nine months that I percent -- -- the last six months about one -- And the -- you love Biotech you don't does love Biotech you look at for the next ten years.
-- we play Biotech because that's scares a lot of people it's a very volatile.
Business.
Yeah exactly and and just to put it in perspective I work with a lot of entrepreneurs that have cashed out of their businesses and in my job to make sure they don't have to go back to work so the -- attack.
You know we try and make sure that's just a strategic portion of the portfolio 1020%.
But we love the we love the trend of the Asian population in the United States and that's a trend we want to throw ourselves and from a Biotech the best way to play it is not trying to identify the winners and the losers for us we'd much rather invest in -- ETF like IBB year acts BI.
Because it it really gives us a diverse basket of of those Biotech stocks to hold in our -- -- -- here's the thing if you look at the performance over both of those ETF that you just mentioned both of them up 3032%.
Again just in the last six months -- mean if you're trying get.
I hate to say time the market but some people are met between Britain and your point we're that they is that now -- should we wait a little.
Well I think you know again we're looking at this being a great play over the course of the next ten years I think it's really going to be the next.
Industrial revolution the next technological revolution this is the next big thing.
I don't know -- it's gonna happen over the next three months I don't know if it's gonna happen over the next twelve months so this a portion of our portfolio that we have really allocated towards.
That's strategic move of investing in that category over the course of next ten plus years.
It's exciting it's an exciting industry mark -- it in Egypt.
-- -- partners president mark thank you very much for the investment ideas appreciate it.
