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Uri Landesman, president of Platinum Partners, on his predictions for the S&P 500 over the next several months.
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Yet it right.
Well now some big picture could be yes -- -- 500 dipped below 12100 in the next few months.
Our next guest seems to think so joining us now very -- and president of platinum partners.
-- -- below 2000 brings us back to the fall of 2000 sorry below 121000 brings us back to the fall of 2011.
Why and when do you think is gonna happen.
Things to happen right away actually I think it's gonna happen over the next two months maybe three.
It's gonna happen because -- really just isn't any good news anywhere in the world so.
United States has been a relative safe haven but -- corporate profits are contracting here economy's slowing down is wholly -- so much the Fed can do.
Maybe some uncertainty regarding the election I only see.
Negative things on the horizon what's the biggest negative out there right now do you think you're trying to single biggest negative is Europe.
Where I think that there is an established chance of a real financial shock to the system.
And another major bailout of banks across the continent just not in.
Individual countries and then a close second would be China where it really does seem at least in the short term the growth is slowing dramatically so you're not an equities at all.
No.
We are in equities were certainly not long equities so we think it's very very important for investors to be fully hedged right now I would want.
Exposure to indices.
Within that there are areas of promise as long as you hedge against them.
You like the technology sector Estonian notes but we have -- some very good -- costs and we AMD applied materials and so -- Why do you like tech -- I don't like the semiconductor space which I think is very correlated with the overall.
Industrial production and in demand which is -- all of the world.
I think there are selected names with in let's say software security things like that.
But again it's mostly -- odds in this one off kind of stories more than a sector call.
From Biotech to other folks this -- be your Lotto tickets yet so Biotech the index tends to be very correlated with the risk trade.
But individual names are driven almost exclusively.
By what's happening with their individual -- And you know we're finding Saddam you know micro caps there was some real promise going forward nothing in the financial sector you say avoid -- I mean to me financials globally are -- very hard time valuing them and I just think that there are.
A potential shocks to the system that we're not discounting is suing you hedge yourself how far out are you hedging yourself are you -- -- -- the three months that you feel that's and he's gonna hit I mean at least I mean I would not have naked long exposure.
In my portfolio right now at all easing options to hedge yourself to subpoena on amongst other things yeah what are the other -- also shorting individual names against long names but extensive use of all kinds of options -- is going to be give me something positive he has got -- -- -- -- -- -- -- but jobless claims are they -- down -- 350.
In the latest reading.
Here here's the letter in the tunnels I see it I think the market is going to trough.
At around 11801190.
-- and I think it's gonna be cheap enough the you can see an -- driven rally so.
Rich corporate.
That have good balance sheets but don't have a lot of organic growth stepping in there and buy smaller companies who really gotten taken apart.
During this debt that I'm expecting and I think that will drive the market by December 31 roughly back to where we are today so really coincide with the election to.
Yeah I mean.
Two good things happen in November December -- you know the president is right is no more uncertainty about that.
And is -- -- 40% chance that it's Mitt Romney which I think at least in the short term will be taken much better in the market than a second term Obama term.
And but then we know what's happened with bush tax cuts right so exactly -- the fiscal -- good answers as opposed.
Very thank you so much great pleasure great -- and in a platinum partners think that stuff.
There is a light at the end of the tunnel that is just look at the train coming and yeah.
The global economy certainly on shaky ground and we've just discussed standing Europe things.
