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RNC Genter Capital CEO Dan Genter on the impact of Europe on the markets and how investors should adjust their portfolios accordingly.
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As we wanna brigadier and Jan thirtieth CEO of RNC gentry capital management hi Dan first of all let's talk about overall growth fear.
Forgetting about -- for a second although it's it's related to your.
You will head GDP growth at two and two and a half percent who brought that all the way down -- one -- why.
Well I think the middle Tennessee Davidson it's.
Slowing here we had -- rebound off the bottom and and that.
It was going on here I think we just can't ignore some of the affected European and a -- And -- in all likelihood but most of the data is majorities RD in a recession I don't think they're gonna come out of this with a silver bullet fix.
And we're probably going to see where we were having nice export that's going to be -- detail.
I think when you look at that.
Overall -- generally speaking we're gonna probably take about a half even 1% -- GDP growth here but that's not what the bad news the good news is that it's still positive.
And we still are created the positive earnings growth so I think today's market action is showing that people -- -- be invested in this market they don't wanna be -- -- And he catches very unproductive they certainly wanna have a risk off trade and they want to safeguard their money but.
If there's any break in the clouds and we see any risk sunshine they they wanna be in this market now to matter of trying to do it and a low risk environment and try to do it and environment we can try to make those assets productive as you go through the cycling market.
So Dan how do you do that what do you look for when you are actually picking the stock and he talked about looking for companies with earnings integrity.
These companies can make all they want and in the end they can be caught in a downdraft.
Other butterfly flapping its wings over Europe and it comes to our area in just a total -- -- I think you're absolutely right which means you you really have to try to vacate some of the areas that are going to be more cyclical with regards to economic growth.
In a particular very cyclical with regards individual earnings.
So you -- to go to the areas in gravitate that your maybe you're not gonna have the highest growth rate.
But you're gonna have the highest visibility in the highest predictability of earnings growth.
Third is like thank health care consumer Staples -- the areas that again you're not gonna have that rapid.
Very aggressive growth but it's -- be predictable and I think a key in this market is having up of very high dividend.
Because this is going to be something that I feel is gonna be contracted.
Hopefully we have a good outcome of the Greek elections but I don't think that we're gonna -- and answer which is going to be the answer golfers at that point.
-- we muddle through this you have to make the -- Rebecca and productive and that's got to be dividend.
Dan just very quickly a couple of picks you talk about health care you have the opposite of health care Altria.
But you say Altria and oil driller told -- Why do you like these to quickly.
While the ultimate consumer Staples like to once again in line with that being -- -- predictable earnings get a five point 2% dividend while you wait.
Very good multiple hotel I think is one of those unique situations in Europe that you can take advantage of in this -- trading at a fixed -- Top -- production growth is gonna grow even at 7% dividend while you wait.
And so you get -- present in this market out there looks good yeah thank you cheapen at -- dividend that dance interests thank you dance with RNC.
