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Crestwood Advisors managing partner John Morris explains why QE3 won't have a big impact on the markets and where to invest.
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-- you're.
Right the FOMC minutes are coming up the topping our investors will be climb through to find out.
While what may be needed to trigger a third round of quantitative easing but it's QE3 the answer let's ask John Morris managing partner of crest would advisors.
Let me start with the FOMC minutes are you going to be listening closely that if anything particular you're looking for -- that's about to happen.
You're we will be -- those minutes but I don't think we don't expect -- see things sort of really interesting and compelling that's -- that's been said in past months so I think we'll take it with a grain of salt.
And you think that actually we wouldn't see this same run up as a result of more QE3 this time around that's a pretty unique perspective why do you think that.
Well because there has been so much sort of quarter -- quantitative easing either through -- of Operation Twist or other strategies.
It's just having that less and less of an effect whether it's your bond market purchases on the long end of the curve so -- short and if you announce that we just don't think it's gonna have the impact that -- expect Olympic figure what do you think about stocks.
Well we think so also it that's -- -- -- the market right now it's our view that we think that that the Fed will announce some kind of quantitative easing may -- today but maybe in future weeks.
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And we are focused on that but also importantly investors got to think about valuations you.
So how do you play -- that.
Well we need to be able to pick our spots in our asset allocation our security selection -- certain sectors we take -- more attractive like what like business is tied to housing is an example but not housing stocks particularly we like timber lake residential mortgages we think both -- -- some interesting compelling opportunity.
Health care remains and -- -- place mortgages absolutely because we have seen a bottoming out residential mortgages who look at places like.
My Miami or South Florida or Las Vegas Phoenix we're seeing that a trend starting to move up and seeing and we we do expect there will continue -- good upside there.
John -- some interesting ideas thanks for joining us there -- -- more time.
