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Himmler: Bearish for Next Few Years

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  • Description

    Integrated Asset Management president Ken Himmler gives his outlook for the markets.

  • Duration 3:37
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Later this month.

While Dennis -- take a look at the markets in their right behind me how markets are rallying for the second straight session but my next guest the joins me now -- Says he's still bearish for the next three to five years Kemp and -- I've integrated asset management says market volatility is making it difficult to invest.

Month to month if you so overall you're still very bearish markets three to five years what do we get stimulus what -- we get.

More GDP growth dressed in the share with the change of my.

Not at all and the reason is is that if we look back over the last ten years we've been in a bear market -- -- the shortest bear market.

It's been seventeen years were only twelve years into that so I don't think that that's gonna make that big of a difference at least for the people that we serve which are.

Those baby boomers those people from fifty to sixty years old.

That have accumulated some net worth that they don't wanna risk that network so that short little blip is not going to save their retirements.

You're looking at dividend -- your focus on an 88 in the generation a lot of our viewers obviously pulled back had a court let's talk about Duke Energy this is your first -- -- want to show our viewers.

The fight -- as you say to look at do as a five year story not a one -- story alive well actually we look at five to ten years will use Warren Buffett's terminology.

But don't ever -- stock in -- you plan on keeping it pretend you can -- makes me just a little bit nervous have a looking at over five years writing obviously -- about you -- 2000 today -- lost money absolutely and that's why with our retired clients what we make sure they had is guaranteed income for the first ten years.

That way these blips don't make a difference to what their lifestyle -- These are inflationary.

Protected stocks.

Meaning they're there to bail them out after ten years when inflation starts to get to a a cable I do wanna show up I -- just the one year advocates -- -- wanna point out this the stock is up 22% over the last year I know you're telling me short term threat to our viewers to look at short term.

Plays with a lot of Kimberly-Clark your next one here's the one -- the stock is -- -- 66 right now up 22%.

Over the last year.

-- we're not so concerned about what that short term -- -- -- what we really look at just what Warren Buffett does what's the free cash flow are they giving the dividends to the -- to the stockholders instead of flaunting that money or wasting that money.

-- this company is specifically is doing that they are treating their shareholders correctly but what we're doing with retired clients.

We're actually taking these dividends were dividend reinvesting.

For the were buying some shares low some share.

Hi okay average price so Kimberly-Clark if you wanna look -- -- the pasture where would you and your point would have been on a chart with Kimberly-Clark we might have dollar cost average Indian steel and really targeted to specific Internet and can look like okay -- Verizon we're just from talking about -- -- there's a lot of chatter market chatter about horizon and Samsung in the galaxy.

Overall though the stock is a 4158 you like this again for the dividend yield correct absolutely dividend yield plus the covered call -- that's the opportunity on all four of these stocks.

Again if you're looking at a ten year holding period somewhere between -- three to 4% dividend yield.

If the covered call strategy works correctly that's another two to three well here's the last year for a name like Verizon let's just really quick show the -- -- because that's kind of where what you're talking about as a volatile charted -- you know eight.

-- 2010.

Absolutely.

So what we're doing here is we're taking those dividends were really buying shares at the lower price so at that ten year maturity date and we're getting the average price of that stock OK well a quick July kinds -- got to run here but -- the site is -- 347 -- -- final.

A dividend play and obviously -- it is only catch up our hey Ken -- yes I can't hello excuse me thank you very much appreciate it.

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