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Clearbridge Advisors Managing Director Michael Clarfeld on how investors can boost their portfolios.
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The S&P as we mentioned rising about 14%.
This year and hitting multi year highs last week my next guest says.
He's looking for a flow back -- high quality stocks as the big picture issues the macro economic picture.
Drives the broader market joining me now in a Fox Business exclusive Michael -- -- clear bridge advisors managing director.
That looks like slow money to me I could be wrong but we've been looking so good lately and what I say lately I mean year over year.
That -- It get little topping out doesn't it and that's when the retail investor comes.
Yeah I think we continue to believe that the market is is attractively valued fairly valued but we would agree that.
We're sort of the higher end of the range we'd expect to see right now we've thought for some time that.
We're gonna be shorter range bound -- often.
The risks a downside while there's a lot of bad things the world the markets inexpensive.
Dividend yields are suppose to -- our support companies -- great shape.
So we don't see a tremendous -- -- downside risk but at same time we don't see a lot of upside.
Given jobs -- economy so within that sort of range we expect to see were probably -- the hiring right.
Now clear bridge has 55 billion in assets under management in the fund that you help from the equity income builder it SO PIX.
That's got more than four billion -- look at that I say in how do you decide how to allocate that money.
Is it a day to day basis source -- more year to year happier to have to year.
Yet -- if you get all depends on the farmer -- and right now we actually feel while mention monies never easy.
We actually feel like opportunities we're getting are fairly straightforward and and and in standing -- in plain view.
-- opportunity for us today is these large -- blue chip companies.
We're not trying to read anything it's not rocket science it's almost like mom and apple pie.
Well it's also almost like following his opinion you're you're up 22% year for years so as the S&P -- so -- look at that I say well you're you're matching them.
How do you get above that again what -- until we actually don't and on time compared yourself -- -- -- it will -- or bottoms up -- and and not relative to benchmarks so for example of the S&P would have a lot weren't financials and we do or.
A lot more and other types of cyclicals and we have to mention what border incidents like as some of these names that you have Wal-Mart ExxonMobil.
I look at for example Bristol-Myers you've got -- a couple of a couple of names like.
AT&T and Verizon still add that to me spells dividends yes.
And what we've seen is actually -- we we invest large cap dividend paying stocks.
And they've done very very well and we think they've done -- for all the right reasons which is in this low rate environment people are looking for -- com how much longer to -- -- well I think what we're seeing is we think we're starting to something but shift in that.
What's done really well to date in particular -- -- higher yielding -- -- spectrum so 1818 Verizon which are both good companies have done very well from a stock perspective.
A book probably compared to some other things have while ago.
We think what we're gonna see is that -- -- by handing off of the -- where.
For the last year to actually been the highest yielding set of stocks have done the best we think what's gonna happen going forward and we think it's going to be sustainable.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- We do -- upside there yes although clearly we start buying apple two years ago before they announced dividend 360.
Now what you know and north of 650 if valuation is definitely different area police do so like and we still like probably speaking.
We -- large cap tech is very attractive you've got 93%.
Of your stocks in the US and then a couple of -- about 6% in what does that Europe yet we're little very very Leno and why.
Why not more in -- less in Europe.
Though a war predominately US -- so that's really where our focus is we don't go out and -- to -- -- Asian securities the way we like to do actually is.
When we're looking to play emerging markets are growth markets it's three US company with a big exposure there.
So -- for example AB InBev which is actually headquartered in Belgium but its biggest businesses in the United States Budweiser.
Or in Brazil where that a -- appear player so it's it's using -- developed market to get access to.
An emerging market treasuries thumbs up or thumbs down right now the thumbs down over anything longer than thirty seconds some staff.
A staff of more than thirty seconds I'm not aware of -- 32 -- All right -- coming back because he's got to -- she wants to talk to about one pays a dividend and then one sort of -- forward to his new theory.
Does not pay that they -- dividend that you got to hear about both of these two very different companies the closing bell ring.
