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Pavlik: Greece Should Exit Eurozone

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    Robert Pavlik, Banyan Partners chief market strategist, on Greece, China and earnings.

  • Duration 3:32
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Stocks of course falling down a 129 points now on worries about Greece and Spain but the question is -- is sealed his red -- is the selloff and justified.

-- Pavelic doesn't think so Obama as the chief market strategists polled by Indian partners and he joins me now to explain so.

Bob you think this is totally on just five essentially -- cause I would imagine that there's nothing new that we minority know coming out of Europe.

Out of the reports this morning no there's something -- I mean we all know -- having problems and we all know that China is experiencing a slowdown.

-- going to have some problems adding additional liquidity in the system once you have an object emotion -- -- in -- and and that's the theory correct.

My what -- regards to Europe I mean really the best situation for Europe.

Going forward risks for Greece are really exit the Euro zone it's going to be tremendous pressure on the people that live in the country.

But think about all the money that's been flowing into this really and -- Bomb that money could be used other places in Greece has still -- long way to go to turn around their whole financial system.

Bomb it's Spain and Italy that the the -- -- exactly the rest of the world really has to worry about at seven and a half percent the rates are unsustainable right.

Well you know once they sort of can push Greece off the table and and move on -- that they can begin to really address that situation.

I just bring you back to the US.

But despite today's selloff was for the bad earnings -- wanted to talk to about that what she'll take on the -- -- looking Ford and the third and fourth quarters as we get some of this -- -- earnings season has been relatively good so for now granted most of the projections have been -- And so the companies that have been able to sort of report better than expected earnings have been able to clear -- lower bar.

Com going forward is so going to be a tough environment we're facing foreign currency exchanges -- -- I mean companies that do business.

Overseas but they don't understates -- -- absolutely 7% 77 cents on the earnings yeah.

Tom they're gonna still continue to face that because the dollar's going to continue to stay strong relative to the foreign currencies because of the -- I'm uncertainty that's going around of us the world.

However I think if you were able to concentrate any of your portfolio you probably wanna focusing here in the United States because we are still growing at a rate that I think is a.

Where do you like obviously volatility of the volume is being low which -- -- adds to the volatility but what sectors will.

Particular stocks you like well it really to.

Enzyme one's outlook and once time horizon one's risk tolerance of somebody has -- relatively high risk tolerance and -- me -- very long term time horizon and basically.

Are you're taking a look at companies that are underperforming over have been sort of fairly undervalued here.

Let's take example of Freeport -- -- gold copper.

-- natural resources though which makes iron ore pellets does you know both companies do business -- taken a hammering because of the concern absolutely everybody China if you're going to be looking for opportunities these are a couple of names may be a moment Caterpillar even a Cummings.

But as somebody that has the sort of well a lower risk tolerances and -- closer near term time horizon.

We're gonna have to look for the relatively.

-- of safety of -- health care and finance and in Staples.

I mean health -- you know take a look at most of the names Merck we will we own fires -- which we own the banks there or even Bristol-Myers I mean these are companies that are really outperforming.

And maybe even some of the Staples like Coke or Philip Morris international or DI GO Kimberly-Clark -- these companies are expensive.

But you're going to that you going to -- does make a safe place absolutely.

I thought we or any outside thank you so much for being favor welcome heavily appreciate it.

Well --

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