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MFS Chief Investment Strategist Jim Swanson on the election’s impact on investors’ portfolios at the end of the year.
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All right let's bring back Jim Swanson and -- -- investment management's chief investment strategist.
Jim we need your number one up money making trade what is it.
What -- value trade for the fundamentals are good in two sectors they're good in commercial real estate and tremendous tonight TV commercial real estate the market already knows it.
We've got over valuation there were some of these companies are trading at fifteen to twenty times cash flow.
This is getting overvalued I would shift that money right now in to IT which is lagging the market.
Really fantastic margins and we're seeing companies trying to hold on very high margins the way they're doing that now is moving into the cloud in the storage companies.
Where they can do virtualization.
Lost sight and it's a big money -- You know there's now a cloud ETF that is a basket of a whole bunch of cloud computing names is that way to get a lot of exposure in ones elsewhere.
-- it is I don't want anyone to think they -- -- and I eve best and I wanted to be fundamentally selected basket -- some companies really much more adept at this and cheaper delivering cloud services and others to just be real care -- in -- pretty happy and some real estate company sure -- like tornado like Boston properties would you be shedding those from your fund.
Well it's a paring back and it's -- looking at valuations -- these companies are very good shape because we've got increasing.
Jobs story which is reducing vacancies in these companies but the real issue now.
His valuation and the market has already sense this we don't have a lot new square footage and real estate market.
But you know what you can move to regional banks and get very low price to book values in the financial sector so that's what I'd rather do as the migration away from the real -- -- when you.
Here -- all of the the naysayers or the people who are pounding the table so either end of the spectrum where do you fall when it comes to investing through the end of the year at least through this election.
Well election here's a good for the market and particularly if the market senses there's going to be a change in Washington we don't know for gonna see that.
But I would be positive on the markets after October we talked earlier on spooked by the whole thing of October.
In a weakening earnings environment NASA we have now in the -- down cycle.
But prepare yourself for the duration of this investment cycle which is based on -- Cycle of growth.
Cycle corporate profits and consumer demand is still strong -- another couple years to go in the economic cycle here Jim -- MFS investment management's chief investment strategist thank you so much for joining us here in the Iraq.
