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Michael Mussio, portfolio manager at FBB Capital Partners, and Joe Manimbo, Western Union Business Solutions senior market analyst, give investing adv...
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Who are people wary of this let's bring in our panel now joining us is Michael -- you know he's.
Portfolio manager FBB capital partners and Joseph men -- -- Senior market analyst.
At Western Union business solutions -- I wanna go to you first we've had a 16% run up since the first of the year course lot of bumps in a -- -- 16% is huge is.
Is it time now when you look at the -- right now what looks to be taking a -- Is now the time to take some of those profits off the table to sell off take your profits and wait for another downturn before buying in again.
Sure.
Four for investors that we work with -- most of these are retired folks are folks nearing retirement and sitting in cash for any kind of long term.
Isn't really an option for more than eight to 10% of the portfolios so.
We wouldn't be you know large buyers here across the board but in specific sectors and for our income oriented clients were were -- stock every day -- though.
To your point it's night for a valuation standpoint things are not as cheap as they were just a month and a half ago.
And we're actually to -- to the upper end of our range.
In terms of the markets will be tuned in here to see what happens with the next earnings season for the third quarter.
But do you think there's a lot of truth behind us that the Fed action and in debt that causing kind of risk assets commodities stocks to continue to rise have been.
-- we can't lose sight of fiscal cliff that is is a serious problem for the markets.
And for investors but at the same time with one point 84% I think is what you -- on the ten year today and there's not a lot of alternatives out there.
And Joseph let's bring you -- here -- -- you're not -- -- we're looking at the stock market you're looking at the currency market.
And you think that there is a really strong play there right.
Now based on all less.
That's right the single currency has moved back in the driver's seat in the currency markets.
We see in the Euro now rise to four month -- it's.
We have seen this single currency rebound some -- nine percents.
From my these late July lows actually -- its lowest level couple months ago in two years so.
Thanks to some of the -- decisive action we've seen by central banks not only in the eurozone but by the Fed last week that's helped operate some not new life into riskier assets such as the Euro.
Well I you know I'm wondering got ousted radio for second here Joseph on on the Euro itself it's it's -- some people say it's going up to one a buck 35 but.
German voters just announced that -- factor two to three.
They vote they would vote for going back.
To the German deutschemark for getting rid of the Euro for how much longer can the ECB.
And and -- Merkel and all the other big -- -- think they know how to run a currency.
How much longer than they can they keep voters at -- it is still a democracy.
And we have two thirds -- German voters saying they prefer going back to the Deutsche Mark.
I'm wondering what the future of the your wisdom may -- -- -- to short it.
Exactly those questions still linger on the one hand we have had string of positive stuff from central banks.
But the political issue that's one that remains a daunting challenge for the single currency so going forward.
For in order for this single currency to hang out to these gains we're gonna wanna see -- -- -- continued.
Of or persistent side -- this up positive news so without that's.
That suggests that's lot of these negatives that have dog the single currency for months now.
Could return to the surface and not -- along a perhaps we could see some not renew pressure for the Euro.
-- my -- is specific ways that you recommend playing this market right now based on the possible volatility.
Moving ahead with the US currency that can affect earnings going forward to recommend being defensive here with stock should we be looking at.
Yeah were.
We're generally -- little bit more defensive by nature it and kind of a growth only took a manager so again most of our clients are relying on income from the portfolios so.
Dividend yield for us is a good indications.
You know one thing that we look at in terms of the strength of cash flow of companies so.
The electric companies and it does early -- matter where in the -- where you are if you if you looking at cash flow and return on equity to shareholders.
That's gonna vote lead you do right now we think -- blue chip.
You know large cap mainly domestic companies so.
Becoming like a lows which is there any remains in kind of an on favored industry if housing is bottoming out a bit.
Lowe's has and we think we'll continue to raise their dividends.
And it's paying about a market dividend right now in the energy sector.
That we -- we like Chevron what you just saw earlier it was hitting new highs today.
As far as the integrated.
Oil companies go there.
We think they're about bests -- -- right now they're actually investing quite a bit for the future that we think we'll provide stability to that cash flow.
And -- relievers and other what are your picks guys we get we gotta move I would have breaking news Michael most ago.
Joseph men -- thank you very much breaking news now to Robert -- go ahead Robert hey David.
