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Matthew Lloyd, Advisors Asset Management CIO, on the Facebook IPO debacle and how it demonstrates the mood of today’s markets and investors.
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Much appreciate it -- I well does this -- fumble -- lot of the at advisors asset management.
You know not and the debacle aside and you -- point fingers at who did what -- one was available investors very well could have been sitting there reading it.
What does this do for the overall confidence of the market right now them.
Yeah I think this is very indicative of the overall psychology of the market I think most people probably felt that maybe faced but did three for two stock split.
And then when they found out there wasn't as many buyers and that -- size of the allotment was much bigger.
I think you kind of panic delighting investors in especially look at the amount of -- -- it sold I think it's representative of what's going on the market -- -- very risk -- -- investor out there.
The ten year treasury you know 180 level is just showing us from going back to the dollar a flight to quality so to speak -- carried over to FaceBook in almost every other equity.
We talked about the -- we've -- -- equities so I think is really representative but we also know that when you have these moments that there's also some great opportunities for long term investor.
Massive -- stuff goes until you go to the mall right so -- the market is in theory on sale.
If you weren't it these -- you know six months you really had you what a lot of money on the table so where should we be right now.
I think that the main thing is is a look at risk assets I think the equity assets especially domestic look very attractive large cap mid cap small cap by.
I think go go almost unbiased in that area I particularly like technology I know it's got some you know headwinds are currently.
But when you look at the trading at about a 30% discount to its long term average -- PE multiple.
I'm taken out the 1990s go though there chair and I think you look at the financials with a JPMorgan trade -- half of it's not -- traditional PE multiple.
And that's right now considering -- with the write offs and so forth.
You see a tremendous amount of value there the problem is kind of wanna -- Rip Van Winkle and you know by ending go to sleep for -- while wake up.
But they say everything you just said you know JPMorgan it would you buy it then -- sure it's trading at half but would you -- it.
Yeah absolutely I think this is a tremendous by an opportunity for that.
I think some of the Bellwether technology companies I think some of the consumer discretionary -- you look at what happened with consumer credit number.
I think the consumers and a lot better -- the most people -- -- act.
And even though there's some hiding tepid macro forces that have come in.
Overall it's it's muddling along with the traditional recovery that you would normally see I now I -- a great deleveraging.
I know you like -- your book on the real estate sector as well yeah do before I let you go is that reits or is that more like a Home Depot play.
You know I think you -- do both and and we really -- the hard real estate play I think there's some great non traded reits out there that option tremendous opportunity.
And the one -- up from with real -- is we have one dynamic that is essential right now we're trading about one point 4000001 point five million new households per year.
And were only bill about a third of that new homes you're gonna wipe out inventory pretty quickly over the next couple years now -- create a big spike in prices that people aren't expecting.
Yeah eventually the kids got to move out -- -- thank you very much for being with us thank you --
