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Paul Pagnato, managing director and parter at HighTower’s Pagnato-Karp Group, on the lessons individual investors can take away from J.P.Morgan’s ...
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Question is what can be individually invest -- from JPMorgan's giant losses.
My next guest says he'll need to diversify not just people -- but -- portfolio manager.
Joining me now is open not a partner of managing director of hightower advisors -- not a copper group and Paul thank you for joining us.
A list of -- JPMorgan's.
Situation to stop falling again is this body of this level.
Well that's that's a great question and actually job.
I we have -- more concerns with not just JPMorgan -- the large -- large financials multinationals.
If you think about it.
JPMorgan has -- probably 71 trillion dollars of exposure to derivatives.
You know with the large mass of global -- that exists out there.
We still think there are some more risks that exists and how can you get a real picture of the risks being taken by these banks have you go about that.
It is very very challenging.
To date no one really has been able put their arms around the global -- picture.
It's estimated that there somewhere between 708.
Trillion dollars of global debt so it's very very very challenging to put your hands around that.
Financials aside -- you say initial term looking at the market yes a very serious concerns what's the top of the list fully -- we do all I would say number one we have by the end of the year the bush tax cuts are gonna be expiring -- that.
When you look at the the analysis that's going to be a three and a half percent hit to GDP.
Our economy is -- growing at a rate of two and a half percent so that alone could really take it down number to.
You have the European debt crisis some bomb there's a strong consensus that Greece may not survive the European community.
And then you have Spain Portugal Italy and others so there's a tremendous amount of turmoil right now over in Europe -- -- A what about over exposure pulled to a European collapse even in Greece fools out there are could claims it could be cataclysmic.
Whereas others who say the firewall is in place to prevent that kind of event what are your feelings -- have got to the markets here in the US.
If Greece were to fail they would be negative for the market.
That would be.
A confidence to cheering factor of course the European community -- then the questions would start to arise as to what country is next.
And there is that there would be a lot of fallout if Greece were to to not make it.
Very quickly got thirty seconds -- you say you like real estate you say -- recession proof really.
There are number of various such as student housing self storage and medical facilities that -- to be very very resilient resistance.
I wanted to to recessions so we favor those properties that can generate 9% or more in cash flow.
Very interest in different side of -- -- they are right poll put knocked up but not a cup group thank you so much for joining us on this Monday we appreciate it.
My pleasure thank you.
