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Premier Wealth/First Allied Securities Senior Wealth Strategist Mark Martiak and Raymond James Director of Equity Trading Dan McMahon on the outlook f...
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Good source street fight representing the bulls we have mark cardiac a senior -- strategist from here well first about five -- securities and for the bears.
-- -- cannot Raymond James director of equity trading.
So we need to go back from here guys first because we just looked very micro what as Edgar bond but okay debt outlook I'll begin with you because your your bearish here.
I have I listen -- you being bearish over the past even just three months -- model lost money I mean that's that's my concern here that Wall Street continues to climb the wall of worry and people miss out.
It it has and through earnings season and I think you've seen a bit of that as as a reason behind part of the rally is.
Money managers who have a pilot cash on the sidelines thinking they might be missing something -- so having to put money to work you've also seen some short covering.
However it's coming amidst you know that -- the catalyst of late was.
Was the earnings season and we saw a very disparate group of winners vs losers in -- all it was on the positive and you also saw some positive -- -- -- albeit.
You know maybe just Sabre rattling -- a lot of talk coming out of Europe and now that that's all behind us you know what's the next catalyst to take us higher and -- a little bit range bound still.
All right mark let's bring Ewing new -- the -- you say you see the S&P.
And tell what 15100 before the end of the year my question is why because the -- guidance I've seen from corporate manages doesn't really -- that.
Well I believe corporate cash is gonna come off the sidelines very very shortly.
And in fact Dan made up a point about cash being on the so -- there's.
Five point eight trillion dollars in money market funds right now and CDs.
And I'm advising my high net worth and ultra high net worth clients.
Who have any cash on the sidelines that the market is in the process of consolidating for a second half rally some.
I am a bullish and and but I also like fixed income.
The new flight to quality asset classes corporate investment grade corporate bonds.
Year to date 69 billion dollars have flowed into investment grade corporate bonds.
-- while two point one billion -- flowed into US treasury.
Bond funds and ETFs so I I'm advising a well.
Diversified portfolio to mitigate the risk and that's headline risks to.
Specific like pockets of those teeny bit of caution and there are down just because you're there doesn't mean your finding you're not finding ways to invest this money would you like right here I think he -- -- more.
Airs tonight.
You know again given the low rate environment and I slowed -- very moderate growth -- at best you know we're advising people who two by yield.
Real estate we like I MLPs on and in.
For structure -- Matthews we should just let people love master limited partnerships they have a high dividends these are more energy deals.
Spent yet and they do have exposure to energy which we are very bearish on the sector given we think that there's oversupply of the commodity.
But we're also saying you know -- avoid Europe but at all cost because while.
It they're talking big -- have -- -- come up with a solution yet it's not going away.
Monkey like real estate as well how do you play that and do you think were already off the bottom in real estate has so many people starting to predict well we are starting to come off the bottom -- I assume that trend occur over the last few quarters you play it with ETFC player with.
Mutual funds you play -- with reits both traded on the exchange and non traded -- OK but but overall let's get up wider picture here from you guys.
And it did you were joking that that -- sounds a little bit more bearish than you do but everybody's got to be slightly cautious going to what we keep hearing about is that.
The fiscal cliff and now we just had dramatics of UBS -- they'll be like Y two K much ado about nothing but.
When you look at that are there ways to position your portfolio in advance of even perhaps a little bit higher tax rate for a lot of people thought.
-- you know I'm not a a market strategist or or or financial analysts like I would -- begin to tell you how to structure a portfolio you've given tax changes -- Our fiscal problems that may or may not exist but.
You know we we we take a very long term view perspective of the market and so we're just saying stay the course and stick the fundamentals by dividend and you know.
The market's -- -- little bit overpriced here may have gotten a little bit ahead of itself which saw the pullback today any S&P in the Dow.
So you know stay the course but to be cautious at best.
-- would suspect you have the same advice correct.
I do.
However when it comes to asset allocation it all depends on everyone's individual risk tolerance and time horizon.
So I'm advising every different client of mine.
Let's take a very careful look if we have money on the sidelines let's decide how we're going to.
Tactically take advantage of opportunities but long term strategic asset allocation.
Being paid to wait I like to paid to wait theme I think it's very very important in the form of dividend income and bond interest income well it's worked pretty well over the past several months mark party academic man could see thank you so much thank you.
