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RBC Wealth Management Research Director Janet Engels on why the economic headlines from China, Europe and the U.S. are still creating uncertainties fo...
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And research director Janet angles now with a warning or watch out for three giant elephants in the room -- here in a Fox Business exclusive.
To tell you how to tame them and make some money it while doing it.
-- -- all kinds of headwinds that are facing the markets but specifically to people's portfolios what do you see as these three elephants are calling the three elephants -- the three biggest economies in the world -- Europe.
It's the US and its China.
So from Europe's Europe's perspective there or you recession -- from our viewpoint how long and deep this recession is gonna be will be the question.
The headline the noise coming out of Europe -- intensified.
After being fairly quiet.
At the end of the year in the beginning of the year.
So it's not just Greece it's also what you mentioned about the Spanish banks it's a leadership change since take taken place in France it's additional elections throughout the year.
Which are -- -- cause this environment and the economy to be quite.
Unstable if Greece were to exit because it could be that the worst kept secret of all time if that happens how can anybody be surprised.
Where would we see the cracks and strains first I mean I worry about our US banks other people say the exposures been tapped out.
I think two things you've -- -- -- in the European -- that seems obvious the second.
Place that you would see is probably in Latin America I would think the least you will see in the United States because.
When you look at our direct exposure to the periphery.
Off from a financial institution perspective it's really quite modest the indirect exposure to -- and Germany is larger but I still think it's containable.
OK now let's talk about China that -- we've sort of put that on the back burner -- and now people are worried because China is now.
Rejecting him refusing deliveries of energy and coal because there isn't demand -- -- that should be a warning signal to our viewers that they may want to watch out because that driver of that.
That sort of inhaler so much of our services that we were trying to sell is slowing down.
Right that's the -- you know global growth world now focused on global growth China being the second largest economy in the world growing at a much more rapid pace than the rest the developed world.
Matters an enormous amount so they -- trying to orchestrate the slowdown in their economy.
And maybe -- going too far it's gonna be a little hard to tell we think they'll have a soft landing but the data has not been great has been horrible.
But it hasn't been great and it's really causing an on.
Withstand that one of these elephants stepping up my portfolio -- like regional banks in the financial sector were overweight financials we like regional banks for a couple of different reasons one.
We think that they valuations are reasonable to they have the opportunity increase their dividends we love dividends -- -- -- -- -- comments.
Well we have a couple that we'd be looking at that we can talk about that that -- we'd also like of the Yemeni activity that will take place the super regionals flying the smaller most importantly when you think of all of this stuff going on the world.
Many of these regional banks are in new and from.
All of -- -- the ways that we're hearing out of Europe and they also participate in some regional economies in the US.
Like the upper midwest that are quite strong today that are doing well -- that you couldn't push outside the problem banks and that -- and that's little guys.
Look domestic said the US can't be that bad -- coming up as -- mentioned that with some names of stocks she likes right now.
