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Mayflower Advisors Managing Partners Larry Glazer and Lloyd Glazer debate the outlook for the markets.
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So those concerns over European uncertainty.
Have investors moving toward the safety of US treasuries today but is it time to buy into the European crisis talk distressed -- Well and we have a street fight and it's a very special street -- is a Father's Day street fight between Larry Glazer.
He's -- ball and his father Lloyd Glaser is our -- their boss managing -- -- -- -- flower mayflower advisors good to see a -- mr.
-- mister -- Larry I'm gonna go to you first you're the ball here.
You -- body when there -- blood on the street now hopefully god forbid there is literally blood in the streets and plays like reservist -- Figuratively there certainly is I suspect -- -- and right now right.
No question that it would surprise many investors how resilient the US markets have been -- the last few months considering how scary the global headlines of -- And certainly we look at Europe but also look at the emerging markets we've seen investors running from those markets and safety in -- fleeing to the US and looking to hide more defensive areas.
That's precisely where the opportunity lies for investors they're getting better valuation.
Investors are looking for income they could -- income overseas particularly higher yielding dividend paying stocks from multinationals that happen to -- domicile in Europe.
It also.
Terrific opportunity for investors to generate some growth in opportunities.
For markets that have better growth in the US long term like emerging markets so this is an opportunity it's scary but take advantage of the turmoil.
This is where money is made long term.
RA -- state your more bearish case things -- -- or not is that optimistic -- -- perhaps listening to your son his.
Well there when you young what you -- -- -- -- healing list I guess.
If that would got too much concern with these markets.
There's a lot that that bothers me right now the market's been rallying more on headlines and hope rather than fundamentals.
And I didn't even as it appears that Greece will win yes very good group will win.
On Sunday.
But that's not a solution to the situation.
These countries are all basically in recession did not solvent and I think.
Because of this when you.
And we're seeing China's slowdown would China slows down it's -- -- affect the emerging markets.
And this is why I feel we have to stay.
Back at home in the good -- USA I think that this.
Good value is a lot of quality names of the F and I think at this point you've had a huge rally.
Based on the wrong reasons we've had a lot of short covering an Israeli.
And I think you gotta go back to becoming defensive his blue chip stocks strong balance sheets in this country.
Paying anywhere from three to 4% but companies that have.
Not just been paying dividends but consistently consecutively.
Raising dividends to 25 to fifteen years.
Utilities -- pretty good to at this point 5% and master limited partnership pipelines and these are all it as well.
-- Figure out what we'll get to specific picks right now and and and Larry your investment picks.
Fly in the face of your father's view of -- -- whether world accounting thing you've got a couple of foreign -- you got the French oil company talk -- And have the German -- car manufacturer Mercedes of course I've marked.
Yet.
Yet no question and again I think what's critical here is.
It while we can hide it defensive domestic dividend paying stocks and they will do -- probably beat inflation in bonds in this market.
I think we need to recognize that there's no such thing is decoupling.
We eliminate global economy so I would rather -- companies instead of the US premium for safety.
By the European discount a company like hotel Royal Dutch Shell Diamondbacks.
They're competing all over the world globally a weaker Euro makes them more competitive more competitive in the US companies.
Lower commodity costs.
-- European companies.
And help European consumers again -- this is where the opportunity like these companies are so much cheaper than the domestic peers and have a safety premium built and I wanna I would -- I would I would -- to hot I wanna buy with a theorist but it is drugs coming.
All right -- election coming in -- -- -- here very charming and well spoken.
Sunday ticket because -- -- just thinking about the multinationals is yes they currency advantage you know is there but.
If US based companies yeah are forced to rein in their spending in their -- overseas it could actually have a contagion impacts -- in the US.
That -- there's no question but.
11 fact that I think is very interest thing is that the ten year treasury is -- and the yield on that is now below.
The S&P 500 dividend yield that's only happened twice in the last fifty years that.
This is showing that the USS and S&P.
If you consumed today is that a twelve PE which is historically low.
Going forward if we can assume which he estimates are of somewhere around a 10607.
Dollars for next year.
If you add that to a fourteen PE which is.
Well within the reason.
That's 15100 the S and 15% increase in appreciation those -- the company's that's weren't comfortable with right.
Now under the lottery and lively debate gentlemen thank you so much Larry and -- by the way -- you -- And I still -- -- Boston accent Larry you lost the Boston accent I don't know where that when I.
I have my Red Sox they're back out there.
I think it's always Robbins yeah that's right thank you think it absolutely yeah thanks guys that was -- appreciated.
Well.
