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How to Diversify Your Portfolio Today

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  • Description

    Portfolio Family Funds president Michael Cuggino gives tips for investing in today's markets.

  • Duration 3:15
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-- -- Are all the markets are on -- hair fuelled by upbeat USF economic data and you ECB president -- -- drug of course backing up his -- ever digs pledged to save Europe.

With a rally last and how should you diversify your portfolio joining us now Michael could you know president and portfolio manager of the permanent portfolio family of funds.

Michael -- -- -- with us today you know.

I feel like this market a little myopic or should say a lot my happen because just last week we got an -- manufacturing number that was.

Awful and yet here we are today we -- good data were rejoicing Europe's great it.

Are we done.

Now I I think we're trading on today's news which was favorable towards equities you know last week we traded against -- I mean the markets like that right now because we're getting such mixed -- so we're getting.

You know back and forth trading although the trend as -- -- -- -- supported by corporate earnings in the last year or so.

Our dividend yields are healthy there's still a lot of money on the sidelines this rally hasn't been one with a lot of volume and so there's still room potentially on the upside.

For stocks as long as you have the right circumstances is the all -- all the old.

Wall of worry that stocks up to climb with the elections the fiscal clue of what's going on in Europe the US that the getting anemic US economy.

On the and so there's always negatives out there and the market deals with them sometimes a more prominent on some days than others but today it's a happy days so we're out.

Yes and Verizon raises quarterly dividend in -- -- the world apparently today right and yet we come into this month of September which is supposed to generally be a down month.

Is this a blip or do you eat you foresee below its time I've -- the tides.

Well you know historically that may be true but every year's different so I wouldn't read too much into that.

I think the reality right now is that you know equities are trading at reasonable multiples there are concerns out there though and as long as corporate earnings holed up.

As long as monetary policy remains accommodative.

On and it and there aren't a lot of alternatives for yield more growth right now I think US equities are gonna be attractive and a number of areas.

Let's look -- the fixed income markets real quick as I know you like treasuries and high grade corporates really interesting is we had -- -- last week who said.

Stay away from both of those and only by high yields so how do you make your case.

Well we use a diversified strategy we talked but equities but -- bonds protect us against deflation and recessions.

Anemic economic growth.

Liquidity crises asset bubbles etc.

so we want some exposure in our portfolio to bonds I think in terms of principal preservation and capital preservation.

Our treasuries and high grade corporates will do that obviously -- -- yield basis they're not as attractive is as high yield bonds.

What you do take on let's balance sheet risk so from our standpoint you know asset preservation is a big concern of ours so we're looking took.

Aren't as best we can in this environment with -- -- bought holdings while looking at good state -- second pay off principal and interest on time.

And in -- Amir equity picks FedEx staged street holly frontier as well as gold and silver Michael thanks for being with us.

This news on the Kindle fire unfortunately cut -- they sold -- have you back.

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