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FBB Capital Partners portfolio manager Mike Mussio gives his outlook for the jobs report and where to invest in today's market.
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-- Nicole thanks so much so stocks bouncing back from early losses a trio of central banks around the world taking action to try to stimulate their economies once again.
But my next guest isn't expecting the Federal Reserve's.
Join the group joining me now is Michael -- -- -- portfolio manager at FBB capital partners.
Thanks so much for joining us I want to before we get to Central Bank I wanna ask you.
About one -- the other biggest stories of the day which is the jobs report -- -- today's a little better than expected already we're seeing people like Goldman Sachs ratcheting up their expectations for tomorrow.
What's your prediction.
Body consensus is around 95000 or a 100000 jobs I can't creeping higher today.
I think.
-- where we've come from as important.
Last month was.
Some 70000.
-- two months before that were weaker.
And are actually revised lower both months.
In the last time we saw strong job growth about 200000 was so way back in February so.
You know I don't know where these sort of final number is gonna come in tomorrow but it's certainly the the trend has been over the last three or four months has been lower that it needs to be served -- of the economy to really turn around.
-- -- -- all the way around it right now we're looking -- market the Dow is down eleven it seems like investors today are sort of talking themselves into 'cause the -- -- negative were well off lows that we saw earlier in the session.
-- -- -- themselves into that there's some good news in here we might see some tomorrow.
I feel like we're maybe setting ourselves up for big disappointment -- I think it could be you know I had everybody's going to be no waiting around 8:30 tomorrow morning to see where that number actually comes on comes in we've got a couple weeks.
Down there -- then what will get the kind of the first to read on the second half.
Q2 data with the Beige Book and then about ten days after that toward the end of the month we'll get the first number for Q2 GDP but.
That the data.
On on the whole is definitely.
Signified.
Kind of slower spring.
Quarters certainly from the first quarter.
Sure and as we look at central banks around the world space certainly see things slowing we saw the ECB this morning take action although.
Even though rates are incredibly low money is basically free they didn't take even more dramatic action -- I guess somewhere may be running for.
What I'm -- what's your interpretation of that when you think the Fed does going forward.
Well up our interpretation is this.
-- that that's the ECB in Bank of England is they're actually playing catch up a little bit to the Fed I mean let's.
Let's not forget that ECB just not their rate down a quarter point as the first -- -- below 1% hammers out.
We minute zero to a quarter for going on for years house.
That's true and that's a choice so I I think I think this.
-- -- Fed bought some additional time with extending Operation Twist -- I don't know what else they can do from an easing standpoint right now anyway.
And absent something a little bit more cataclysmic.
I think they would like to see some actual growth.
But we're just in that period of the year this -- a similar story last few years where things are slow down at this point -- kind of see where that takes us so.
How does that how do you best based on that.
But you have to -- first -- all and then and they didn't want you to I don't have been asked what costs.
All right so you can sit and 0% money market in and earn a real return of sub zero or you can buy a ten year treasury at one point five -- one point six wherever it is today.
Blocking any real return over ten years of but effectively zero or you can buy a you do we're not so we're not pushing stocks for everybody but but most of our clients have a balanced portfolio some stocks some fixing -- and some cash.
And within the equity market you look at those returns in the other the other asset classes and something that's paying a steady dividend that there are that there are increasingly on an annual basis sometimes multiple times a year that's not that bad -- -- I.
I can lose money in -- -- -- you -- -- -- put my money -- shopping -- Clearly be big shopping bag and another denying it after everything that's how imagine I imagine -- little little adventure and suggest a boy yeah.
I you know all these other avenues that might lose money do you think I would be missing out if I do about the rest the year.
Right but for the next six months I have no idea for the next period of a cycle of three to five years yeah I think you probably would be missing out and this is a very real question that I'm I'm having with with family members do -- -- who who want to sell stock.
And I would say look at your asset -- I have a look look at what you want the the portfolio to actually do for you in terms of income in terms of growth.
And then -- work with somebody to find the right balance for you and go from there.
Like this yet thanks for coming -- we appreciate it.
