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Janus Capital Group CEO Richard Weil on the strategies to help boost investors’ portfolios.
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Lives what we are less than a week away from the election despite the uncertainty ahead we have -- -- who says now is the perfect time for investors to get into the market.
Dick we -- CEO of Janus Capital Group he joins us in a Fox Business exclusive -- -- anybody think.
Your Picayune about your investments said Dick you have 158.
Billion dollars under management so -- you're you're dealing with a lot of cash here.
This year we've had this tremendous run up in the markets.
We just talked to the chief of NASDAQ they've had a 20% gain.
Other indexes have had great case but very low volume the retail investor is afraid of getting into the market.
Talk about the fear factor for example and how that plays into investments.
Right that's a great point thanks for having me come.
Our our investors and investors probably speaking are afraid they're afraid of all the geopolitical things going on in Europe they're afraid of the potential for war in the Middle East.
They're afraid of the potential for hard landing in China.
And there are certainly made more nervous by our difficulties controlling our own domestic spending in and the political race.
On going in all the uncertainty around the policy that might might come out and so people.
Have stayed on the sidelines.
They've -- this great rally but the sad truth is they can't meet their retirement needs.
By staying on the sidelines and none of us are Smart enough to market time and stay out more afraid -- then go back in when we feel better.
None of us are good enough to really pull that off on a regular basis and so we need to tell people they need to to.
Relax their -- somewhat and proceed with caution right now and begin to reinvest in the long term.
Investment strategy and we think stocks are reasonably priced and that there's a lot of good news that can happen from here.
Well the key is protecting your principal is -- not a mean I'm right right at this point right before an election.
Are right before the fiscal cliff right before all of these uncertainties.
Get resolved we want to make sure that that principal is not gonna be chewed up.
Yeah you're exactly right that's very important we're telling our investors to proceed.
But with caution which means one eye on principal preservation we're recommending things like conservative equity strategies were recommending.
Bond portfolios without too much duration and we're recommending some alternatives that have low correlation to stocks and bonds.
But overall depending on your situation we're strongly recommending.
That you proceed with one eye on capital preservation because the risks are real.
But by the same token you can afford to miss the -- stock market we've had this year.
Now ticket with all due deference to you have fund guys -- just -- why not just by -- -- why not just by the DJ spider or or the S&P -- If you think that overall markets or are fairly valued if not cheap.
Sure well I cap weighted indices are reasonable thing to have in your portfolio but.
The problem they create is they have a positive momentum in the sense that as more people buy -- stock.
More people chase into these indices and buy more of the same stock -- and end up with a a highly concentrated equity market where most of the stocks are trading in the same direction on the same day we've seen a lot of that in this past.
A year to eighteen months and that can't sustain forever ultimately these companies are are traveling individual past driven by their own futures.
And those things will come out in the end and you're going to end up pretty miss invested if you have too much in the index weighted by cap.
And not enough respect for the individual -- of the companies which is why we really like high quality growth companies.
We think they're poised to outperform the indices by a wide margin in the coming year.
