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Gary Goldberg Financial Services President Oliver Pursche weighs in on the markets.
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What here in the US is day one of the -- highly anticipated policy meeting investors are expecting chairman Bernanke to announce.
More stimulus tomorrow we shall see but my next guest says a third bond buying program could cause a sell off in stocks joining me is.
All of a Porsche president of Gary gold book financial services all of -- thank you so much for being here is so well first off.
Do you expect some sort of -- stimulus out of mr.
Bernanke QE3 we do is expect some -- most most likely QE3 but there's obviously other tools that they have available.
And we do expect a small pop initially as a result of that but it's likely be very short lived in our expectation that you're expecting a sell -- is that selling on the news what -- -- the market has priced in QE3 and that's where the rally over the last couple of months has come from we've -- significantly -- -- June 4 flows.
And why things investors seem to have forgotten again is when you underpriced risk and under estimate risk.
You get into trouble and I and our view that's where we are today where people are pricing in.
Q -- three their pricing in political action we're ignoring the fiscal cliff that's looming ahead of them so you know we're getting ahead of ourselves and so it's not disaster but take a little risk off the table.
And be careful.
Option prices in terms hedging your portfolio or relatively cheap right now because the market has performed so well because the -- -- solo you know so it's an opportunity to him for investors to avoid the mistakes of the past wouldn't you -- while based on meant that the market is in dire need of a correction.
But I don't like to use words dire because -- that kind of through doom and gloom gonna.
But I do expect a correction the com I think that we've hit the highs for the year are certainly very -- -- them down and so for the rest of the calendar year.
You're more likely to see more market market volatility.
And potential downside risk and significant upside risk especially for US equities so what does well out of this assuming QE comes album hits the -- it hits a dollar which is positive for copies of mean you -- -- -- reports today.
Not as bad as some of the -- had expected but still something that's very positive.
Gold silver are rallying so the technicals are improving there.
Is still seeing heavy Central Bank buying and specially in Asia on the precious metals.
So we think the commodities are well poised we think that from an instrument insulation perspective you by the mega -- -- quality dividend paying stocks.
You also have some pretty good opportunities and some of the very large US European multilayered European blue chips and -- I do I mean if you compare an Exxon took -- towel as an example yep I'm you can buy both of -- New York Stock Exchange both of -- similar businesses similar size.
-- -- -- -- 1% -- dividend and has a lower valuation in terms of PE in price to book so that's attractive to us good point Rudy at a time multiple to thank you so much for being here thank you appreciate it.
Thank you.
And I -- gotta get back to this -- 5 bash apple unveiling its.
