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Pepper International President Carol Pepper on how to minimize the risks to your portfolio.
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Her is a -- spite of -- selloff today and the dismal state of American job creation but.
That doesn't mean she's not prepared to figure out a way to claim with the bears of summer.
-- -- founder and CEO pepper international she's here in a Fox Business exclusive and I'm glad you are.
You -- -- your clients are high net worth individuals right.
You talked to some of them today what were they saying to you.
Well there's a lot of that uncertainty and fear there's wary that we're gonna go through exactly what we did last summer and so the question becomes how to reposition ourselves to right through another difficult period and and we think.
We imagine you're taking on the bears by embracing them figuring out a way to keep them at bay by feeding them a salmon but highlight that our portfolio what's the -- to protect you from the bear well that there's a few things that are senate's first -- you don't wanna be overly invested in equities so again our clients tend to have at least 30% -- -- -- 30% in short term bonds.
That helps protect you and the downside so you're not all the way into the market.
That's on about two year five year yet know even to you're right now inflation is not an imminent threat to this is the time to stay in short term yes you're not gonna make a lot of money.
But that -- being preserved and that's what you really wanna do right now preserve capital through the summer while the bears are growling.
And Europe being such a difficult situation that we all have to -- let's let's just look at what's on the screen though -- the ten year yields.
At one point 46% so -- fallen below one point 5%.
This to me is dead money I just don't understand what people are joining -- I mean I know there's a lot of fear but goodness gracious you could get a stock.
That might just be flat today but still yields 34% that's right and that's why one of the things that we do look at and we've.
Come up with some ways that the average investor can -- it seems are high dividend stocks looking at things like TVY which he talked about before.
As a way to you know protect yourself because cash flow is still coming yes the jobs report is terrible but remember.
We don't -- jobs -- -- earnings let me explain to people -- -- this is an ETF that has high dividend paying Dow Jones industrial stocks right -- you know -- -- basically select dividend you're exactly right OK but today -- obviously it's it's down just a -- almost -- -- -- -- on everything that are out -- and all right let's talk about a couple of other things -- utilities or another dividend player that's right here that the needs to be I mean that was the trade of last year in two years ago yet well again I think we're going to the same kind of America -- risk on their risk operate the minute and that means every time that we focus back -- the risky things like what's going on in Europe.
Slow jobs numbers scary numbers everybody gets -- -- assets so that anyone -- rotate into things like utility and look -- this is actually perform pretty well yeah accept you as a great safe place to keep part of your portfolio you definitely want to keep.
A lot of your portfolio and less risky sectors of the market over the summer we have tried to educate our viewers about MLPs master -- partnerships these are oil and gas.
Opportunities that have very nice dividends anywhere from seven to 9% I believe that's right and the other basket here that we can talk about yes there is there's one magic new markets come out with -- which has caught the Larry and MLP.
The good thing about a -- and -- that you're basically getting cash flows that are not tied to the market you know it doesn't matter the market suffered down oil and gas -- Still flowing through pipe -- about what you're getting your cash up front of folks weaken weaken beat up anybody we want congress the president to -- this police about this jobs number but.
Part of the worry comes from US companies that are terrified to hire because of things they can't control about that is Europe for example.
We also saw slowdown in Chinese manufacturing that is now real if you believe their data that's attractive but.
You still feel there's an opportunity in China if people want to take a bit more -- that's right because remember the good thing about the Chinese economy -- it's centrally controlled.
And the Chinese Government is cut is recognizing the slowdown and they're saying they're gonna turn this -- back on remember they.
Engineered a slowdown because they were afraid of overheating in their economy.
Now they're gonna open the spigots back up and what does that mean that means that China is probably where we have an opportunity if you wanna take a little bit of rest.
So looking at a little ETF like JG -- C is -- out.
Carol thank you I know you've been fielded calls from worried clock -- day -- a buyer in this atmosphere still.
Definitely -- again I think you have to be long term you can't wary about data day.
Carol pepper we appreciate you being here and talk to our viewers through this that's what we're trying to do here for you yes it's a very scary day.
