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SunAmerica Funds Regional Vice President Heather Hughes on the debate and the election’s impact on the markets.
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Yes Heather Hughes is -- who we're going to Heather go ahead is is this Romney Bob sustainable.
While what a great -- be ample David definitely it's it's kind of bay a Romney -- is as you've stated based on his.
His speech last night.
And he's brought back some pro growth.
Entrepreneur or Americans -- -- back into locked into that economy an American people he certainly is for the free markets and capitalism.
And I'm not.
Access control if you will now is it is some.
Some people of actually quantified or try to quantify the amount that that would give him out of the -- that we might get if perhaps Romney is elected some people say could be 6%.
Other people say it's already sort of -- -- this market has so many things in it right now but that's been worked into the next.
After -- the election if Romney is -- Victor with the market continue to rise or would it stay at its current lofty levels.
You know as we stated before that there is still the uncertainty which will be here resolved before you can say trick or treat.
Regardless of who wins and -- had mentioned the -- time perhaps see cap gains and dividend tax write last semis on your show regardless of who winds.
They're still not a lot of other places to go in the search for yield to learn the equity markets when you're looking at things from a relative valuation standpoint.
Tail risk -- relative valuations the equities markets had higher from here.
-- infect you say those who were on fixed income you have to be very careful you see something really bad coming in 2014 tell us about it a major concern that we're hearing from investors that do business with -- America finds this.
They don't want to be caught in the long end of the curve the duration risk which is of course rising interest rate causes the bottom price or price of your underlying portfolios -- they come to go down.
You don't -- -- be stuck in solely fixed income they're saying.
Because if and when rates do rise that perhaps in mid 2014.
I you definitely wanna be searching for yield now ahead of that bandwagon and one of the places you wanna look heard the dogs of the Dow tell us what you mean by this and why that's -- place to advance -- -- yes David so far all the big dogs in the room.
Again advisors that that -- what facts are looking at this very simple strategy again.
-- that was popular in the eighty's and ninety's and what happened was we have a tech bubble happen and then.
We have found PE -- PE ratios of fifty we're chasing after these gross names in when that tech bubble bars.
You're seeing a -- in the value into those.
Flight to safety high quality names such as the dogs of the Dow and the real simple strategy take the ten highest yielding names in the -- and space.
Once a year you rebalance on January 1 you call up -- advisor mr.
broker do I still own and hold.
The ten highest paying names if not you rebalance keep -- samples not rocket science.
OK and John I wanna go back to for sick as I mentioned gold at the top of the hour.
Some people say that it's had its run up particularly focus if if folk with folks are now going to be focused more on the stocks more than they already have been.
Perhaps gold loses a little bit of its luster now.
I disagree David I think there're couple things are pushing gold higher.
And which will help older -- attractive through the end of the year first of all.
The Fed continues to add liquidity -- the -- been joined by other global central banks and adding even more liquidity to the global financial system.
And that's that should benefit goal but more importantly I think for today specifically David.
Hi this chatter about the devaluation.
Of the Iranian currency is only raising tensions another spot within the Middle East to add that in.
What's -- on the Syria Turkish border.
And I think real -- real significant large money accounts in the Middle East.
Are getting defensive and adding to their gold holdings.
And I think that's what's driving -- as well current John staying with gold John good to see -- actually John we're gonna see -- a couple of minutes when the S&P futures closed -- -- good to see you thank you very much for coming in appreciate it.
