Fox Business
Expand
Browse All Video
Watch Live

You're watching...

U.S. Financials The Safest Bet in the World?

Details

  • Description

    WBI Funds CEO Don Schreiber on the outlook for the U.S. financial sector.

  • Duration 3:41
  • Date

Clips

Also in this playlist...

Financial Services

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

Be scared to get into US financials.

Don Shriver says US financials are actually the safest bets in the world map dotted the CEO and co portfolio manager of -- on spending the last hour of trading what that's the safest in the world.

When -- four billion dollar losses.

Granted in the grand scheme of things that's not a lot for JPMorgan's balance sheet but head they pop up like that's.

It is and I mean I really think that they had a bad -- that got away from them and their being.

Castigated for that you know in the media very heavily.

But in fact the US banking community is probably the safest rates now in the world.

We have -- -- -- on I mean that's like saying.

The dog with the least fleas you've heard all of the -- -- -- I it you write it they're being castigated and it it'll be losses that they absorb but have to -- a much more sensitive and -- markets such as the -- we saw back in 20082009.

Could this cause real problems for the taxpayers out there the viewers who are watching right now.

I think that taxpayers should not be bailing out you know the banking system especially with this kind of proprietary -- -- proprietary trading.

I think that you know if the banks are gonna continue to trade from their -- their own book which is questionable I really don't think that that's gonna continue to much longer.

Then I I think the US taxpayer can't be the backstop for that I don't think that this in any way -- US financial system.

Banks have a lot more cash than they had before you know regional banks not the major money center banks that had a big kick up.

In 2008 and early 2009 because of the leverage products that they were using tremendous leverage a lot of that's come off I think a lot of that is better.

I am surprised that they continued to pile on to this trade.

As it went bad and that's it was -- coincides by members of the financial media -- let me bring it in Europe you're rather sanguine.

About the risk of contagion from Europe here to the United States I think the US economy is a lot stronger than most people think I continued -- Believe that I see US corporations.

Consumers.

And companies spending in the united -- -- We look better and better all the time we've got our thirteenth quarter in a row.

Of record earnings growth so I think that we're really pretty strong -- government has been able to shed expenses in the United States.

We've lost a lot of government employment which is made -- jobs number look bad.

As private jobs have come up.

In fact the US economy is rock and enroll -- and is really good news for everybody in the world right now Europe.

Is going to solve the problems the move away from just austerity.

Cutting expenses.

And raising taxes is a very positive development in my opinion.

They had the wrong prescription.

You're making everybody sicker not better OK but -- approve the US economy rock and roll and we could argue about that's on the house come home but.

If you were to pick a stock in Europe right now.

What would be you're obviously not shying from some of these -- yeah we have some names like in the pharmacy sector we own Novartis.

Novartis has a very high dividend yield broke through -- close to 5% by the -- Swiss based so it's not in the -- some bright and we've got a that that company people continue to get sick unfortunately.

And the use more.

Pharmaceuticals.

Companies have read.

Inflated or or gotten their pipelines moving again in terms of -- drugs and these companies have had really good.

Financial momentum over the last couple years Don likes dividend playing names as many people do in this very nerve racking up a -- going to be naming them coming up fifth.

Load More