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Natixis Global CEO John Hailer on the investors who are missing out on market gains by not investing in equities.
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More than 750.
Billion dollars and says now.
Is that time for investors to get off -- the sidelines and put their money to work joining us now to Fox Business exclusive his job -- President and CEO of Natixis global asset management.
I'd listen John thank you so much for joining is when you look at the amounts of money that's on the sidelines bill.
All of those investors have they missed the rally you have 750.
Billion dollars -- -- -- -- -- management how much of that.
Is in the market.
Yeah it's it's at that that's great question actually because you know one of the things you see about this market move that -- -- -- -- -- it's been on very low volume.
And as Charlie was reporting just a few minutes ago lot of individual investors have been on the sidelines still a lot of cash from the sidelines that's why I think these volumes have been soleil.
I think people aren't certain about what is going forward with the economy what they're what some of the risk is out there.
And some of our surveys have shown that so when you look at it -- I think people should be invested yes I do why because they should have portfolios are designed.
To manage it with bonds have an understanding of managing risk and volatility and -- need to be in the markets for both good and bad times this -- like they're waiting didn't -- market -- so.
I'm a firm believer in staying invested.
Well.
This and talking a bad times you say.
If it looks like a recession -- like -- recession smells like a recession guests walked its pay you probably a recession before I get to you.
I wanna just I hear what mr.
Bernanke had to say about that recently.
Right now we see an economy which is expanding.
We see employment which is one of the key indicators of recession still growing.
So we expect the economy to continue to grow that's our best forecasts as of now so we -- not expecting a recession.
So what do you think John -- in a recession.
Well how I think -- you look at the economic indicators and in my mind you can always have numbers that can say one thing the other.
Are we in a technical recession now are we in an area.
Of the economy where -- lack of job growth where people struggling.
I don't know where this job growth is coming we grab a month the numbers and we say wow.
We've turned the corner.
Unemployment is structural these days people have left the job force that's one -- -- is why we're seeing drops in unemployment.
Until we get job growth going in in this country and around the world we're gonna have a difficult time getting out of this economic mess.
And it's not a business mess maybe at the start of this physical crisis business issues business reasons turn -- political mess now.
Fed's not about creating jobs that's up to congress and the executive branch -- can only do so much so basically it's become a political.
Economic problem not a business problem.
John given that the low volume high volatility.
How should investors be finding income from the market.
Yeah I you know you've seen -- be a real popular area for people to invest and -- getting -- good income stream out of that it's real estate they see that as as as as a tangible type investment.
We've seen definitely a movement into.
We were firm believers in corporate credit vs government.
Balance sheets that's where we've looked.
And you're seeing yield in that area so those have been too with a big areas that we see movement of cash and the other -- that -- -- seeing is.
Toward the liquid alternatives area people wearing about -- I think risks has gotten them you know is a fit.
It's a four letter word but it doesn't have to be a bad -- you have to take summer desk.
You have to take some -- for some opportunity and it's how we focus in on that.
That is really how we focus -- -- manage that risk can put that risk and our portfolios.
That allows us to.
To take advantage of the market moves whether up or down so that's our that's our goal.
What about the financial sector obviously concerns.
All of regulations.
Suffocating the sector a little bit Taiwanese what's your thoughts on map.
You know it's great question we did this global survey we saw that 86% of Asian institutional investors.
Feel that financial regulations are real drag on the market creating -- -- And are creating.
Additional risk not less rest 76% of European investors institutional investors are feeling the same thing.
So all of this regulatory.
Upheaval that's going on -- Hong Kong are the UK the US Europe.
It's starting to create this uncertainty and it's making financial institutions as well as companies corporations.
To make -- capital spends to invest in jobs and that's been the most difficult thing is this overhang of the regulatory environment.
Well -- -- presidential election the fiscal cliff and on and on John -- Natixis global CEO president thank you so much for joining us today and sharing your thoughts really appreciate it.
Ashley thanks a time.
