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Global Financial Private Capital Portfolio Manager Chris Bertelsen argues the Fed’s 0% interest rate policy hurts those who are retired or near reti...
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-- -- has historically low interest rates are weighing on people trying to make money and -- what they already have but not to worries got some ideas for joining me now on the Fox Business explicit.
Chris Carlson global financial private capital portfolio manager and managing director you an interest in assertion.
There's a war on those that are trying to retire.
Who's waging this war in your opinion.
It's the zero interest rate policy and I think there's a lot of hype about apple and the German court decision tomorrow.
About the surprise I think will be that.
Ben does not go forward -- QE3 may -- trends around the edges but what he will go forward with this -- zero interest rate policy pretty much.
And what it's done this is really had as you said this a war on seniors and savers and retirees.
People who are retiring with modest or meager means a suddenly have to look and say my gosh how can I live with less than 1% interest rates.
You sit at the market's gonna be disappointed we're gonna be disappointed tomorrow even -- -- guess the top of the show tell me the traders say no we're gonna ever gonna get a -- say.
That's not so fast OK another spread -- the first person -- say that but also.
For those that are retired a lot of those investors rely heavily on dividend paying stocks.
And one of the issues that we have with the fiscal -- coming as the fact that the dividend.
A gimmick to get get the taxes on dividends are gonna jump up to 43% I mean are you worried about that are now.
Yes I'm worried about it and amplifies some of the issues that they've had I mean if you look back to 1982 when people could buy a CD of 12%.
Now all of a sudden they're looking at a situation where.
Whatever they're gonna get for income is.
Is as I said meager at best group so shore.
It's gonna be a real problem for people if we go off the fiscal cliff.
Our other names that you like coming -- obviously I think most of our viewers that are that are looking to hopefully retire -- would go for those dividend has.
Are their names that you likely Milliken eighteen tier like -- isn't a Dow component here or there that that you favoring on the -- -- use -- -- absolutely one of the segments we like the Telecom stocks.
And in a way AT&T is an embarrassment I -- up 23% or so this year and still -- pretty close to 5%.
But all of those Telecom stocks whether it's still -- restaurant Australia.
Whether it's what you Telekom now I don't think Germany's going into the North Sea so I think what we're seeing.
Is a real opportunity if you take a long term view.
What you know AT&T the stock is up about 35% over the last year.
But you're still sick what posing in -- -- new money and -- you would still targets to -- MSN and here's why over the next five years let's say it's only up the dollar every year.
But you're getting a dividend that's slowly increasing so you're getting 5% compound and plus maybe 10% or 15% at the end of five years not.
35%.
But what it means for someone who basically thinks the market -- game they're gonna look at it say while it's a safety net.
Deutsche Telekom up more than 14% as well you mentioned those those while wanted to get an up to our viewers across -- ceiling just a little but don't go anywhere Chris Carlson global financial.
Private capital -- you're managing director he can be back with more investing ideas for all of the.
