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It's might open tomorrow so while US economic data and Europe's debt crises rattled a market should investors play it safe or is there room that a little risk your -- -- But first street -- get ready everybody -- the well.
Temporal capital partners portfolio manager and for the -- we've got Jason pride -- need director of investment strategy all right.
Gonna start with Tim because you're the -- what makes you -- -- right now.
Sir we think the markets had a couple pillars of support really last 23 years valuation balance sheets operational performance and sentiment most investors have gone away from stocks not towards.
Equities we think what's new.
Has 69 months six amendments in particular is that housing bottomed at some point in the back half of last year to be positive for consumer sentiment spending.
We -- the consumers in the best shape.
They've been in and probably four -- five years.
And you've got substantial liquidity not just from our Central Bank from above from central banks around the world and some that liquidity is gonna find its way in the US equities.
Well Jason what's new for May is -- people like David Rosenberg had been a bear for as long tiger remembers turning a little bullish.
But you say he's he's way ahead of any kind of sit substantive rally.
UN fact mentioned the.
Look we're we're not in recession this point in time but the reality is.
While we may be able to piece together a long term bullish positive argument this is not a straight -- Solution or or progress that we're on at all at this point in time.
There's still a lot of obstacles that the economy are facing both from a fiscal and financial standpoint.
At the government level as well as from a near term economic perspective.
And our economic indicators have turned soft recently despite the possible action now.
Of the Federal Reserve.
And they will likely remain soft throughout the the summer providing.
More downside risk -- near term basis.
Even though we could be long term constructive that downside risk is is something that we have to protect again for or against our client base.
I'm looking at both -- you.
And at a picking these are two Smart guys they both made great arguments for where they stand now comes the real nitty gritty and so like I guess ten you've got to prove to me that I should be on your side is -- the Fed coming in with the government trade of extending that so called Operation Twist.
Double continue to prop up this market you seem to be looking -- fundamentals of companies.
At terra capital partners were stock pickers from our market forecast of so we -- -- businesses that have a sustainable competitive advantage.
-- the potential upside is at least three times as -- as potential downside.
When you look across the markets moment and -- we see great franchises.
Trade in a very attractive prices like an Amazon.
Dot com and what -- make an -- so I mean I've talked to more CEOs who say I'm doing everything right -- executing all of my plants have got great employees we've got great product great ideas.
But every -- -- headline comes out of Europe must goes down.
Yet they are in our trader.
Back and -- several 1008 pounds and got what what you see Liz is as a headline sort of dissipate you get back to valuation he backed fundamentals.
And the market seems a get a -- our view goes way beyond what the Fed may or may not do.
We see great companies great balance sheets at attractive prices and an an asset class that the world -- run away from.
For years now.
Well Jason the onus is on -- -- well five -- -- a lot of your customers saying look.
If you say it's a bad time to get stocks to get into -- -- may -- with a could certain exceptions what do I do just put my money in gold.
Well this is where we.
Think you have to be Smart I would love to take perspective that -- taking into could conclude the long term perspective and and say that every investor that we have is a perfect ten year investor.
That's not reality investors just aren't they don't act like tenure investors when they feel a downturn they tend to react in the wrong direction at the wrong time.
So our approach is let's try to find the best risks out there those don't exist on -- stream of high risk equities.
Or on the extreme of -- overturning its underperforming inflation cash and treasuries and actually exist in the middle of the risks spectrum.
That's high yield bonds high quality equities and more esoteric strategies like like covered call portfolios.
And and hedge funds.
Guys thank you we gotta have you both back because who knows what's gonna have where this market Jason pride.
Tim Holland we appreciate your advice thanks gentlemen -- very Smart guys thank -- -- pick up.