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Addison Capital CIO Michael Church on why investors should stick with stocks even in the current market environment.
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55 minutes to the clothes and surprisingly September Hispanic decent month for the polls but let's look ahead to the fourth quarter.
Because Wall Street's never about the rear view mirror it's always a roller coaster month of October presidential election in November.
Michael church is -- capital president and chief investment officer.
He has about half a billion in assets under -- management would you be worried would you be wary or would you be willfully excited about stocks.
Well I think your last guest used to work setback here and I think that's probably pretty appropriate at this juncture and we we came into third quarter who is.
Analysts' expectations for earnings growth running around 3% we've come full circle now at this point running negative 3%.
I think clearly we've seen some economic data that has been.
-- there's really nowhere thing yet disturbing is probably a good word you know the durable goods number we have not seen levels like that since 2002007.
So I think that there may be some rocky water here.
You know coming into.
-- -- but you know as an asset class I think equities to look really attractive in the long here people said.
The exact negative same things going into the third quarter and here we are looking pretty darn good -- why should I believe you dwell time the data at that point on the economic front was not nearly as bad as what we've seen recently.
So you know doesn't mean that we necessarily are -- into recession -- so you don't think we're going into recession what happens -- the fiscal cliff -- Well let's -- that I think were his view yeah yeah I think and in -- -- looking to stay out of the markets entirely where do you go.
And not treasuries right.
There's not a lot of great options at this juncture so I think you know it if you're focusing on quality and focusing on a little bit of a longer term -- Equities look attractive.
But I I think you need to be opportunistic.
Here comes earning season.
What do you think it's going to happen now we've -- the CEO finish line exclusively in the next hour and I bring this up because they did very well who they have decent same store sales.
They're selling product they're striking deals with Macy's they're doing good things just one company.
Well I think what you're seeing is that the US consumer is probably in better shape than most of realized.
And so companies that are in -- operating in that space are probably looking pretty good.
Companies that are operating -- have more exposure nationally.
I I would be very cautious at this juncture and you know that that ties into you're talking about what China.
Anyone with exposure to Asia Pacific I'd be very wary of -- this at this juncture.
What should investors do to prepare for what you believe is a tepid earnings season.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- But you know I I think you wanna have some dry powder here because the economic data spurred concern.
So worry is that the volatility index is as low as it is -- all that true.
Concerns sure -- Greece is still a problem.
We don't China slowing down they may not totally admit -- but we know that it was probably worse than what what it looks like and here's -- volatility index pretty much.
Trending toward the lows of the year to date bride and if you look at that chart you find it when it gets these levels eventually it spikes.
Time in you know you don't want to be overly exposed when you see those spikes come along.
I never want to be overexposed -- At a.
