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-- -- a street fight today's bull is mainstay capital management CEO and chief investment strategist.
A couple of bear is strategic well partners co-founder -- -- -- got a lot it's great to have you both here and I wanna begin next.
With -- -- David all right.
Let's start stamping your -- here and you tell me what is really at the heart of this and and I guess she could -- -- a comment about Alcoa to better than expected on both top and bottom line.
Gap out -- coming in with a better earnings on revenue.
And profits now Alcoa has not proven to be a good barometer necessarily for earnings season in general.
But it -- it is still considered somewhat of a barometer for global manufacturing so it's good news all the same impact if we look at this earnings season we're headed into.
That's what we've seen we've seen four out of five companies guiding estimates down.
-- downward revisions in overall earnings estimates to 4% so we we're gonna see some positive surprises this earnings season which which could add to that bullish scenario.
Now Tony you are -- -- here but but you're not saying get out of stocks entirely are -- No I'm not saying to get out of stocks entirely you know capitals gonna chase yield.
-- way to do that is their dividend paying stocks and high yield bonds right now.
I mean a lot of people -- clearly there was across the board sell off today selloff is too strong a word.
But people were were -- on the side of getting rid of what they have maybe.
Counting their gains and new holding -- the cash until the time with some of this uncertainty is past namely the election.
Well there's two there's two forces going on right now you have monetary easing -- you have the fiscal -- coming up.
And from now till the election I can really see that we're just gonna move sideways in this market.
It's between the end of them at the end of the election in the end of the year is when things are gonna start getting.
Very volatile you know people are going to vote once the elections over the of the fiscal cliff is going to come in -- -- -- and again.
It's going to be -- start to become a reality.
We're all gonna die obviously not David you could still invest can't you have come up with great ideas.
So what -- probe into investing do you take David.
Ed -- your comment period yeah we don't have the end of of western civilization coming.
You know we have a fiscal we have a fiscal clip that we know can't be addressed until after the election as we get closer there's more anxiety about it.
But there will be some kind of compromise we will get through election as I once heard right now that's fair and and and in this environment we think that you go with what we referred to as our Barbell strategy inequities.
High growth sectors like technology financials.
Homebuilders on one side of that Barbell and high yield is Tony talked about on the other hand high yield bonds emerging market bonds preferred us reits.
That diversified portfolios given.
You know it a nice diversified approach was steady returns this year and solid returns we think that continues.
To be the way to go through year end.
-- but David you even use of the mayor the -- in this scenario you see a pause right now perhaps.
But just a momentary pause but until we get rid of its fiscal cliff brought problem and -- Iraq.
And you do think that we're gonna deal would that you think eventually the politicians are -- -- solve this problem.
Why don't we just did take our gains right now hold off -- hold these gains just for a month or so until that fiscal cliff and and other problems are resolved.
You you could -- if someone -- Try to time.
-- time that that pull back were down 2% on the S&P 3% on the NASDAQ.
-- goes a little bit further but we don't know what next good news is coming out of Europe or what positive there's a lot of negative news out there right now with the IMF this morning.
Hand you know that all the concerns we've talked about.
But in the face of that the market has continued -- climbed this wall of worry for four months so how long this -- will continue or how much for this pullback we'll go.
Anyone knows for long term investors we think -- stay invested with a diversified approach and we look for more gains by year end.
But Tony I'm always interested to know how people who are bearish and are worried about things on the horizon -- what is your approach when clients come to incest don't wanna be in somehow.
How should -- at the end.
Hey you know I -- -- comes down to capitals gonna chase yield.
And the only places that we see yields right now aren't dividend paying stocks high yield bonds just like -- that -- again -- picks I mean is there is there a way to actually put that had to work with financials.
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