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Mark Martiak, senior wealth strategist at Premier Financial Advisors/First Allied Services, on the market advice he is giving to his clients.
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-- joining us now mock up body -- senior while strategist for premier financial first allied securities mark thank you for joining us.
Look -- does seem that as -- just alluded to that the traders believe the markets a little oversold with had a very impressive week as we just said after that all four jobs report.
Where do we go from here well I fully and expect a lot of volatility in the markets throughout the summer.
And I'm advising my clients that they look very carefully both long term and tactically at third at their fixed income asset allocation.
So I think -- safety trader's market right now I think you have to be prepared to respond tactically.
Each and every day so intraday the Nu -- can vary and I think -- to be.
Are very cautious but that being -- does that mean the average.
Investors should be looking at his or her portfolio on a daily basis because you know -- back -- that's its domestic exact.
I great no I I I think that every advisor and myself included you have to keep your clients focus however you have -- And remind them not to get clawed up.
In the news that headlines -- yet headline risk -- as we call it news that might affect their sentiment because I have clients that can get pretty upset.
Over fluctuations in values -- Is either for their equities where they're fixed income.
So what sectors appealed to you in this environment.
In this environment I would tend to be more defensive I would recommend health care.
Utilities.
Tell a very defensive very defensive.
That pay dividends of course if these sectors have stocks to fall 203040%.
To dividends become less important.
However nonetheless they're -- companies -- like consumer Staples as well.
Proven sectors proven company speaking of financials on analysts to ask that could arguably be -- rescue plan it -- -- I agree and I've recommended financials and technology because of the growth.
And finances because of coming out of the -- from -- don't nine from the subprime crisis.
However barring any -- -- seeing risk.
Meaning moral hazard risk -- like we saw recently with the trading teams in London and New York for JPMorgan Chase.
I think -- -- I -- that's the caveat with the financial sector on the fixed income what do you like in particular.
Most importantly I like tax exempt vs -- so by that I mean the municipal.
Bond asset class you can get four and a half to 5% coupons.
And for investment grade municipal bonds and for high yield municipal bonds.
I was buying mutual funds this week -- -- yielding as much as 7%.
Blacks exempt.
So either national work from the respective states option and I and I like specific states such as New York.
North Carolina.
Virginia Georgia they have good fiscal house is in the -- I would tend to avoid states like Illinois.
California and Alabama in particular Jefferson County but the broke states music that that the states they're having the most difficult to bankrupt headcount yes yes yes that's precisely but I.
I really like the municipal bond asset class.
If you're in New York State resident yeah and you wanna four and a half percent tax exempt yeah you've got to go -- and find a taxable yield that's important.
A probably steadily point 6% and you can't get seven point 6% in this and buyer suddenly comes sought cardiac thank you so much for being here is some great advice thank you very much for having me -- -- many Americans.
