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Advisors Asset Management CEO Scott Colyer breaks down where to invest in today's market.
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-- our next guest says the best bet for investors is to put their money.
Right where the Federal Reserve is joining us now Scott collier CEO and advisors asset management Scott -- -- Eight point nine billion dollars in assets as the company's chief investment officer Scott -- to be here how much wind.
Do you think that the markets in which markets have at their back because of the Federal Reserve -- what they said with this new policy it's really open ended.
Well not only is -- open ended but they committed that they would continue this behavior.
Well into any recovery that we would see and I think that's that's probably the big difference of what we saw last week vs the prior fed policy of I've just going on these bond buying programs calling it QE1 QE2 what the goal of what the.
The Fed is doing -- to.
Drive longer term interest rates down even more than -- put your money in treasuries -- is very hard to get anybody even in fixed income.
To commit to that investment given where yields are -- -- and I think.
-- that the more wise bet is to used to try to put your money where the Fed is pushing money to.
Not where they're pushing money out of so.
Driving down yields and treasuries is actually pushing money out of that market and in causing it to go into risk asset markets like the equity market.
Giving you -- were looking at that.
Yields on the treasury is another one point 64% to they have had they have come down.
They have come down because there's some of that push of assets into treasuries coming from Europe from overseas because of the concerns there.
Well I think the the US treasury market like the -- market in in Germany have been the recipient of a lot of scared money and and that money is just pushing and because.
That that is risk adverse money but there is a lot of risk in the treasury market at this point in time.
If you if you were to have a recovery and I know right now nobody can see that especially after the durable goods report we had this morning and it.
Revision to second quarter -- absolutely.
But that no recovery is is a straight line item -- -- have ebbs and flows in recovery.
The thing that I would point out to the viewers is that if if treasurys the ten year treasury rate -- -- what would just by 1%.
Which still that would be historically low grade so we we go from the -- one point six to two point six.
He would lose 9% of your principal.
Right but it might take that Connell lost Scott to force that money that save money out -- -- riskier assets but.
Thank you for being here is good to see you think -- -- your take care we'll see their -- All right the the.
