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Harris Financial Group Managing Partner Jamie Cox on Europe’s debt crisis and how to invest in this environment.
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I wanna go -- edu and we also general Charlie -- coming out of this great breaking news that essentially the United States Geithner and President Obama think.
But heart like plan would help Europe do you really think that that would happen that if they came up with some Euro TARP are our problems in Europe would be -- -- I don't think they're gonna immediately be solved with any thing I think that Europe has a lot of debt problems that are not going to be solved overnight.
I think -- Euro TARP like.
Program would be very effective in sort of stabilizing the banking -- sector which would sort of eliminate some of that deflationary worry that we all have if there's a default to -- -- Euro nations but I don't think that the Euro harper anyone program was going to be a panacea but I do believe.
That there will be some type of deposits skinny more insurance scheme or something like that it will -- shore up the banks I do believe that will happen and I think it will be positive for the markets.
But I don't think -- -- the ills of all the spending the European nations have had over the past couple decades that's not gonna happen overnight.
-- Are their specific stocks you really like in this atmosphere and this a tough atmosphere to invest in but.
Where would you put your money right now.
Well I think that you have a lot of opportunity -- oil dropping.
-- consumer Staples I think you don't have to I think a lot of retail investors have been afraid to invest thinking that the market is sort of skewed against them.
In my supposition is is that you have an opportunity now while things are -- to ground good quality companies paying yields that exceed the rates of treasuries almost all across the duration -- I think you can end consumer staple name elect in particular.
What you know we've got McDonald's is being kind of thrown around today is what is the best stock -- -- last year maybe the worst performer this year -- actually like it you know if you if you're -- medium -- long term investor it's a fantastic place.
And I think that that's a good place to buy it also banks I don't people don't like them but I think that over time people that own bank shares are going to be rewarded heavily for medium to long term investors have.
Five to ten year time horizons those -- the areas in which you can really get good value and you also like telecoms Jamie IC like Verizon and AT&T.
Yeah what's what's there not to like about telecoms made over the last ten years they've been sort of burning -- -- wireline assets.
In the 1990s Verizon and AT&T had average bills per person of about eighty to ninety dollars.
For household now the average cell phone bills over 200 dollar so once that is lower capital cost higher.
You know -- average revenue per user once they're not to like about those we all carry around mobile devices were using data plans.
That that's going to be a big money maker over time you know by the way you get a five to 6% dividend Brad dividend looks nice with -- low yields on treasury Jamie -- Harris financial group thanks very.
