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Palisade Capital CIO Dan Veru on why reducing regulations would help boost job growth and why investors should consider small-cap stocks in this econ...
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-- and that leads us to what's going to happen next what would work here.
Could the job situation now force the Federal Reserve which is meeting next week to jump in.
With more help more liquidity -- policy capital management does here but I'm more -- talking right now about what we were talking about in the commercial break I sitio.
What are we gonna do there is no positive -- he in this jobs report today and -- so there's one thing we haven't tried and that is less regulation.
Well that's right and you know we have a very unique perspective because our clients are fortune twenty type corporations yet the companies we invest in.
Are in the Russell 2000 and up to midcap type companies.
And the recurring theme we hear over and over again as the regulatory environment is just prevented companies from -- -- wanting to spend.
On long life assets or make any major commitments including to.
Hiring people it's what's unique about where we are right now -- companies are rarely in the financial shape that they are at this point in the economic cycle it usually takes.
Several quarters of 45% GDP growth which we've really yet to see that allows companies to deal -- there are ready to -- -- sitting in net cash positions right now.
Very different from in previous period.
By the way folks as you look at the S&P 500 down 31 points that is correction territory same with the NASDAQ right now meaning.
Down 10% from the 2012 highs it it was a great start to this year but you as a guy who manages money.
More than three billion in assets under management.
Again you know you talk about if we made it easier for regulation congress I had no hope cannot agree on anything -- but.
We have actually.
And make companies healthier they've improve their balance sheets so would you still be buying stocks here.
Well as we talked about this before in a slow growth.
Economy like we have right now.
You should be doing what's counter intuitive and putting more money into smaller cap companies rather than larger cap it just feels good to -- what they get hit harder -- wanna buy smaller companies they tend to have more domestic drivers are driving them and the US economy while its tepid.
Is recovering it's one of the few bright spots globally.
Dan is the kind of guy who sees on a day like this that stocks he's wanted to buyer on sale coming up piece naming some names of ones he'd be buying today may be Monday.
He'll be right back in just --
