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Raymond James Chief Investment Strategist Jeff Saut and CenterState Bank Executive V.P. Joe Keating on the outlook for the markets and how investors s...
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-- we have Joseph Keating centerstate bank.
Vice president Jeff sought Raymond James chief investment strategist Geoff let me go to you because we've been it's a negative -- that you can't get around -- but on the other hand.
This market still has buying power doesn't not a mean there's still a lot of cash would you always or target about how much cash and the silenced.
All those retail investors -- never got fully invested -- effect.
It very few of them have put their toes in the water for the past couple years.
When is it likely that that we are likely to see a move back into the markets or is this -- is a sell -- gonna continue.
I don't think it comes from retail investors I think that a lot of her frozen like deer in the headlights I do think that professional.
Portfolio managers are under a lot of pressure here I call on 22.
Up in Boston a few weeks ago and twenty year town two weeks ago none of them were outperforming the S&P all -- -- sitting on right much cash.
So coming in the year ended they not only have performance -- they have bonus -- and ultimately they have job -- so.
I think the pullback is a buying -- don't think it's a -- and we're getting very oversold on short term basis again.
I am I'm so glad you said that because of people who have just out there worrying and fretting incident what are we paying these people to worry I'd say you don't need them to -- you need them to invest appropriately.
So mister Keating let's get to you up to show us the money where is that opportunity to actually get some returns vs just.
Hiding your cash and fretting and concern doesn't do you any good.
Well there's earlier David mentioned how aggressive Federal Reserve and other central banks event.
We we refer that's financial repression is bringing down short term interest rates and and bond yields so therefore investors are forced to go into the equity market.
In order to -- investment income today -- Talk consider a company like DC -- the viewers -- know what is bell Canada.
It it has a five point four -- dividend yield which is actually higher than the than the yield on either AT&T or Verizon.
And actually has a stronger expected growth rate in the dividend -- over the next four years.
I consider another like Clorox.
Company with a 3.4 percent dividend yield hey you know global manufacturer and distributor of cleaning products and household products.
It would about a -- a percent increase in.
In dividend pay out expected over the next four years and lastly now let's go to a whopping eight and a half percent distribution yield on a pipeline company -- star.
It's -- midstream energy company they -- Sold half of their exposure in the asphalt business really costing more on the midstream pipeline space they really really good -- Jeff one thing that we have had an opportunity to be optimistic about as the housing market recently.
It's not all good news but you can't -- -- prices are finally seem to be off their bottom and you've got a bit specifically focused on that a -- most folks at Hurd.
Yeah I I would I would also point out that I've never seen the country go into recession when you were getting this kind of improvement.
In the housing market transactions are -- 78% here in saint Pete price ends up ten.
To 12% a second derivative play on the resurgence in housing.
Is a company we -- fundamental analyst has a strong buy -- not -- -- timberlands are why and they own two point eight million acres of trees they also have a performance fibers division that's growing like topsy.
It's up in just -- -- they produce the cleanest and highest grade cellulose.
Out there -- season things like cigarette filters flat panel screens and the process is so superior to every other company that they won't patent because they don't want to tell the patent office.
How it's done they just increased their dividend by double digits and we think the dividend increases are gonna continue to come -- sought Raymond James Jo Keating centerstate bank thank you gentlemen great stuff.
