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How Investors Can Find a Bull Market

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    Sica Wealth Management CIO Jeff Sica on how investors can seize opportunities in any market.

  • Duration 5:36
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But of course we're also on the markets now and this is gonna touch a nerve with some of you.

For the past year with some of you there has always been a reason.

Not to invest the debt ceiling debacle and worried about that Greece Spain remember Ireland the year ago -- the US was downgraded the eurozone crisis the election uncertainty.

How many of you just sat there doing nothing well that was a mistake if you watch what was happening you missed the rally for the past year the markets have done nothing but.

Go up -- -- few bumps and bruises occasionally but my next -- was somebody who was also bearish on stocks.

And look what the Dow and the S&P did you missed out on this rally -- seek out but -- sick sick a wealth management as the president and chief investment officer still managed to make money and -- you to kind of explain to people.

How you don't all put your want all your eggs in one basket and how.

Even when you lose you can still win.

I think the biggest mistake was is that people look at the market is you're only gonna make money for goes up you're going to make money for goes down -- your only -- lose money because down.

The truth is there's a bull market somewhere in something.

And as an investor.

A lot of bulls are very lazy they just want to put their money and let -- go up but a lot of times you have to be more.

Understanding of the fact that you could have a bull market in a bear market co exist at the same time.

Well I think that the trick though that -- I'm hearing -- bright it is that you have to.

Be able to spot where the bully is in bearish times we haven't had a bear market so that's sort of a misnomer but.

To find the bullish points and that those little islands and figure out a way to get in on those two.

Unit a couple positive bets that balanced out today did they swap your your negative bet on stocks were you able to come out on top.

What I think that they certainly bounced down my negative any negative I had of not participating in the in the stock market to the extent that I could of -- -- chase the market.

I don't believe -- market -- I believe in sticking with fundamentals.

Sticking with a strategy.

So what I invested in that was.

Non equity related actually performed extremely well among the asset classes are invested -- actually better than the stock market perform.

So there is opportunity is just a matter of not looking just that the stock market looking at a broad base of of choice -- what what's your strongest and best call.

I would say grains were right now if you look at grains which is we -- corn soybeans.

They've outperformed the equity market in the case of wheat and soybeans are up over 30% year to -- They were my best call me back I the last show to make that call it was strictly -- having nothing to do with the drought of obviously it had everything to do with supply and demand.

There was -- demographic trend especially in China.

That led to a tremendous demand.

And -- that the man continued to accelerate.

I continue to -- the grains and and we had a phenomenal return in those.

-- and then we saw the drought.

And the drought just authority prices more what's your call now on the grains I think now's the time to really look to scale back a little bit I think we've we have maybe another five to 7% up.

But himself but I think we've come to go through to the end of this trend.

My dad used to say never on the top of the market you never on the bottom -- -- -- so you're saying you don't get greedy because even then there might be 7% more upside let's be careful.

Right so many investors.

Look at market tops and they're they have this tremendous fear of missing out.

So they become like dogs chasing parked cars just looking to get that that that extra return but if you look at market tops.

The the biggest acceleration.

A lot of times.

Is at the top of the market OK now I need to spend it forward and ask you what do you see what's your best call going forward.

Well from the time -- went bearish on the stock market until now right now we've had a market that is pretty much been been elevated by by the Fed stimulus.

That has become the core of the appreciation.

-- hasn't been earnings hasn't been economic improvement.

Right now -- that that future of the Federal Reserve in terms of whether this liquidity will continue.

Is in question and earnings are just not cutting it so what do we -- I think at this point you have to be very selective about -- said there's a bull market somewhere.

There's also point that weighting is your best strategy and letting whatever is gonna happen happen and start to buy those defensive sectors that are gonna -- about.

Let me just -- two names in the grain area because they are stocks but mosaic and CFR.

-- that you would say still you can catch a little bit of the gain there there's two names.

Yahoo! was -- with those two at this point because they're fertilizer companies because they they deal with increasing the output of farmland.

Which is something very necessary.

They're gonna all they're gonna have a very very good future -- -- -- -- at the right time -- sense of what about ConocoPhillips now up of durable last march I would say you were here and you pick that it was a loser it went down twenty so.

What they weren't equity exit didn't do well it.

25% it pays a great dividends so she got a little bit of income there -- do you still like ConocoPhillips is there another name out there that you would prefer now.

Why -- -- ConocoPhillips and income combination of ExxonMobil saw ExxonMobil had a much better your -- I would say that I would still buy it -- -- look to buy it now I would way I would wait to let this let let let it settle out and plateau and then I would look to buy.

Buy more shares.

Winning for losing Gypsy got managed to make some great calls even though she like many of you guys that's why -- brought a mom -- very bearish on stocks but.

We'll see what you're doing in the next couple months thank you so much Jeff cica seek out.

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