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Street Talk Advisors CEO Lance Roberts on how investors should adjust their portfolio ahead of summer.
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We've got a market selloff OK -- off the lows of the session but it is so very ugly day here in part because of Europe whole bunch of operations people still worried about China but.
Today is a perfect day to serve as just another reminder that it's time to weed in prune and -- around your portfolio.
To -- further losses to your portfolio this summer you can do this now to make sure you don't -- more later.
That at least as the message from Lance Roberts he's the CEO of street talk advisors he's spending the last hour of trading with us in a Fox Business exclusive.
Teaching us how to use the shears at the gigantic garden -- thought I think it's gotten take a little too far -- the ideas right now.
And just let people do -- -- they should we can improve a little bit their portfolio.
What the question is Weinstein this is the thing to people that's why do you -- imprint -- because if you don't the -- take over the garden until guard.
And it's the same thing in a portfolio if you don't sell your losers get rid of the things are dragging your portfolio down and and trades take some profits harvest some of the vegetables -- of -- garden.
Then it's not gonna grow properly so are you saying if and when the market is down that people should be selling some of what happened decent performance -- absolutely well tendency is not to pay and accelerate that -- it's an important understand is that we want to sell at the top and -- at the bottom of the problem is is that when markets are going up nobody wants to sell anything.
Because go higher.
But the reality is is that as the markets are going up as a weren't January February march.
This is win as things are going up and things are getting extended.
Take little money off the table so you've got a position is only five of your portfolio -- -- a trimming back to five just leave it cash yes pulling cash because you give you an opportunity markets don't go just up all the time to ports up and down.
Exactly so when they come down like and we've been talking since April that we're gonna have a correction.
And now we're having -- correction so now got cash sitting on the sidelines waiting for buying opportunity because I wanna be a buyer -- when nobody else wants so.
I wanna buy things -- things are cheap and we're getting.
Here are.
A couple of headwinds here that are really pushing on the markets not only do we have.
What -- would see is a real -- that's the debt ceiling coming -- that decision once again markets hate uncertainty but.
The Fed's liquidity efforts might be coming to an -- will there be a new one.
Plus weakening US economic factors you know we got some housing numbers today down five point 5% that's -- not a great day to day certainly for pending home sales.
The expectation was for them to be flat.
Sure and look at housing any take a look at -- the economics in general.
We had a boost to the economic output last year because of it the warmest weather and 65 years so housing saw some increases we saw some increases in employment numbers because.
These seasonal adjustments that we -- to just those numbers were skewed by the exceptionally warm weather.
That's now coming out of the picture so -- three asset classes you believe might help to ad is a little bit of fertilizer for the portfolio than -- it's a thing is is that first -- all the markets are selling off today critical support here thirteen thirteen on a weekly basis we look at that market away one Erica that's exactly where we work is that her doctor to get -- gone nowhere a year or so ago all the gains from the first this year gone.
Right so you what we wanna be looking at here is is when -- we where do we hold cash at the moment.
-- short term bond funds are great interest rates -- you're gonna go to 1% 2% on the thirty year so bond funds can still be great place to hold these shelter some cash.
Gold precious metals those have been really oversold here during the sell off.
They got into place to where they actually look very attractive here and if there's concern about market turned certainly in Europe money simple ethical treatment today gold -- And by doing that if is that there will be our plants is with us the whole hour he's going to name some specific names he really.
