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Alan B. Lancz President Alan Lancz and ACE Investment Strategies Chief Trader Yu-Dee Chang on the European economic concerns’ impact on U.S. markets...
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-- any time soon.
But we've brought -- to money managers who still see big buying opportunities in the market.
Let's bring in UD Chang and Alan Lance good to see you both -- first to you yet you have to just be concerned you have to think that there's a strong possibility -- if Greece leaves the EU.
There's going to be a lot to pay for some people put the price tag of that close to a trillion dollars -- trillion euros forgive me.
-- no doubt about it that is a major concept and there is a real concern that they will exit EU.
And that's what's being factor into the market right now that's why we're seeing this what and a half percent 9% correction in the stock market I think overall speaking this concept of risk trade and that.
Back that -- still a federal put the Fed put in a market that this -- well result eventually in a buying opportunity at the other very short term basis our indicator tells us that we may not exactly.
Be there yet they may still be another -- 3% to go to the downside but we believe after that another to a 3% it's going to be a buying opportunity.
Alan look this could go on for years -- the EU cookie monster and all of the fears that are going -- so if it hasn't grip.
The best way to look at that okay it is what it is let me get into the market and certain select areas and still make money or just stay away completely.
Now let's I think it's more the former on and what when we're in your studios.
A month and a half ago.
We we you know we're related have very many buy recommendations -- -- we are saying.
To buy and a weakness now -- getting that weakness and now we're starting to find some opportunities.
Whether Greece leaves the Euro.
It's going to be a 23 year process even if they don't.
So we -- they leave you're gonna get a big sell off it's going to be a great buying opportunity.
If they don't I would buy a third of your typical position be very selective like -- side and take advantage of the sell off just like month and a half ago.
You're taking advantage of the buyers by taken some profits.
Alright by the way not that I'd I live in -- polls but UD we should mention 85 there was -- a -- 85% of the Greeks want us keep the Euro so.
There's still questions as to whether they'll pull out of the your not Greeks apparently don't want to but they have to take the tough medicine.
Let me ask about buying opportunities -- you think that financials have been beaten down enough so that say a company like JPMorgan.
Which some people say was beaten down too much -- too much market cap as a result of a bad trade is a buy right now correct.
I think self financials to me you know is might not be long -- -- opportunity was definitely a trading vehicle.
JPMorgan specific what they lost two billion dollars but don't get two billion dollars is only how progress and all of their cash and cash equivalents and first quarter alone there announce earnings of about five point four billion dollars I think.
JPMorgan is actually wanted -- more stable -- while the so called what have their act together banks so I actually believe this is a buying opportunity just look at Wal-Mart back in April during that Mexican crisis they're down 8% now not only they recover diapers that they're back up.
3% above that so I think JPMorgan to me right now is pretty much -- buying out.
He Wal-Mart hitting a multi year high just yesterday are so Alan but he talked about a trading opportunity -- JPMorgan.
You like names like Royal Caribbean and and are -- looking long term or also a trading opportunity.
Now we're -- long term investors listen in it's a situation where.
Royal Caribbean.
NRG energy cap and dole foods are all under book value.
They all have leadership positions.
Trading at multi year lows and this is a time when you want to buy themselves -- you know I can't tell you that's the bottom.
But I you know I would -- positions now and then by more and a weakness and we're long term investors and I think you know they move up.
Back near their highs take some profits like we did a couple months ago I think you're gonna get -- back and forth market.
You wanna trade it short term we're not -- enough to do that just take advantage of these extreme swings.
Okay -- talk about beaten down and nothing is were beaten down the natural gas.
But the question is whether manufacturers.
And utilities and truck companies have figured out a way to use all -- natural gas which might.
Put a floor on the price you think maybe now we've reached the floor I've heard that before -- gotta tell you.
You know what I don't -- tell the truth they figure out how to store how to transport natural gas yes I think on that basis we're not there yet again.
On a trading basis though I do believe natural gas has been beaten down little bit to heart and just by looking at a price action alone.
Is balancing -- We don't believe in single bottoms by the way so now after this first south if we come back and retest the bottom holds the bottom.
I believe is buying opportunity whether you buy the natural gas itself whether use of stocks such as I Chesapeake Energy.
We still like it on that basis beauty Chang alum -- two different perspectives on how to trade but we appreciate -- but thank you so much for joining us.
