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Jeff Kleintop, LPL Financial chief market strategist, on this year’s spring slide and how to best play it with your investments.
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-- -- what Operation Twist ending we -- slowdown in China and of course European debt worries just continue to hang over this market.
The list just goes on China will this year's spring slide -- as bad as the past -- and more importantly how can you play it.
We're gonna ask Jeff -- top LPL financial's chief market strategist you know what's interesting is that.
They sell in May go away is actually getting a little earlier isn't it it's more like sell in April and then I guess just pulled onto your seats.
Right -- this when did come not in April you know and each of the last two years we saw more towards the end.
End of April but the market's big -- this year on April 2 so we did move up a little bit but hopefully.
It's not gonna go quite as far is each of the last two years did you know we had a 16% pull back in 201019%.
Last year.
Maybe this year a little less of a decline in part because we know that.
Budget debacle situation the debt -- -- debt ceiling that we had in August of last year but also well China's cutting rates this time instead of hiding them.
We've got you know a number of other factors we've got you know housing holding up much better than it did need to the last two years.
Well inflation's falling so there are some positives in the backdrop he still -- -- defensive but there are some opportunities beginning to emerge here in the markets.
-- -- -- you opportunities.
Jeff you know case we go away in April -- should we come back in June like now is there's some good value out -- Well.
I think you might what is still remain cautious in June but that doesn't mean.
Yet to -- cash and it doesn't mean you have to buy treasuries at all time low valuations and instead there's a new safe haven.
There really just emerged -- reemerged let's say woke up after hibernation and that's gold.
Precious metals last week particularly late last week.
Really behave once again like a safe haven rather than an Asian economic barometer remember -- been falling as Chinese economic growth had slowed but just recently.
Has begun to turn around acting like -- -- safe haven.
That might be a place for investors have been cautious -- sitting on the sidelines and to reconsider their portfolio.
Let's you know let's -- about these equity markets and mean it.
June is -- ridiculously busy month -- Europe right we have a bunch of meetings coming up the Greek elections of course our Federal Reserve meeting as well.
So as far as equities go are you kinda just wait into -- independents say to get back again.
-- yeah you know he's certainly got another couple weeks of of a lot of uncertainty were you mentioned a lot of things going on there's quite a few I think perhaps that we might get.
Reasonable clarity towards.
Maybe the mid to latter part of Jim -- we've got the feds meeting as well on the twentieth of June.
Whether they'll hint at it QE3 or not we'll have to see you were leaning in the direction that will likely hear something from the Fed.
That could be a catalyst but we'll have to see what when you do what we do start to see those moves.
You wanna look -- areas like emerging markets you -- to look to the industrial sector technology stocks.
And even some commodities like oil which it -- -- so sharply here so what does the Fed do Jeff we did have somewhat some decent so better economic data today but so far as being.
Certainly pretty dismal of late I'll what does the Fed do if any thing.
-- think the Fed probably.
Does some form of QE3 -- whether that's targeting mortgage bonds.
It we haven't seen mortgage rates tracked down treasury yields as much as we'd like to that would really help continue to help housing in a tough overall environment so.
I think if you take a look pizza last two years you know when QE1 ended it took a little bit of a market pullback for the new QE2 same thing.
We're -- we're likely and that pulled that we've seen the data to tearing here think the Fed probably Dillard takes some type of action and they hinted that on the twentieth of this month.
And that may be targeting mortgages which may mean lower mortgage rates for all of us that's nice but it may also mean some positives here for the economy is as as you would -- -- -- lower rates but I felt across the economy right.
I'm gonna get my sparklers ready for Independence -- that's what -- doing -- racked -- LPL financial's chief market strategist thanks for being with us.
-- thank you while Europe's.
