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BlackRock Capital Managing Director Russ Koesterich on how the election could potentially impact investors’ portfolios.
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It is just days before the election and according to BlackRock capital managing director -- cost rich investor sentiment.
Maybe a little too lax he's joining us now -- a Fox Business exclusive to get too little hyped up about where he should be putting your body.
Got a great investment options leading up to the election well it -- it is what it is -- -- -- -- Well ended the question comes down to -- What are some of the possibility taken out of -- selection.
What impact today can -- -- economy.
And -- -- the market likely react in the coming about blackness really refer to the fact we're all talking about the fiscal cliff it's.
Garnered a lot of headlines but when you speak to a lot of investors.
Most of them are fairly confident we'll be avoided and maybe a bit overconfident and that's the part that worries me yet.
Okay it worries you but you're never the -- I get so worried that he doesn't make some moves in people's portfolios correct.
What should people be doing even before hand if everything.
What -- -- beforehand don't think people should be given any thing I think the reality is at least for the next few days.
The election outcome is very inserted in.
If you really is 5050 not only on the race for the at the White House but also the senate so don't think it's a matter of moving today the question is what happens after the election.
And basically the argument -- if you get a very divisive outcome.
The risks of the fiscal cliff go off.
In under that scenario investors want me what -- get a bit more defensive.
And ironically one of the ways they they would consider doing that is -- lowering their allocation to stocks and bonds in the US increasing their -- Where you believe that no matter who becomes president people's money -- really grown.
There are I think one of the things people should keep in mind in Denver and low the home country bias the last few years.
The US has outperformed have been good reasons for that.
We're shifting to an environment where the US may be the bigger source of risk.
And in addition the US stocks well they're cheap against bonds and their history.
Are not that cheap against other markets -- see good opportunities Liz we'd like Northern Europe we'd like Asia we like emerging markets with up Brazil -- a couple of iShares funds put up here tell me why Brazil.
We're still losing interest in playing this is a market really it's been beating up a lot over the the recent past.
The stocks are very -- this market trades for a little bit -- -- book value.
It trades for about less than at ten times earnings and -- things you like about Brazil -- -- real evidence of structural reform.
We're seeing monetary policy normalize we're seeing the types of structural reform that leads to faster growth.
And also is a very good energy play in this is a sector we like over.
The long term let me just quickly say you also like to China funds.
Among them the MSCI China index fund and you've got the -- China 25 index fund -- with a lot of the of mobile companies C -- these are.
Energy companies banks etc.
China took place even -- we see a little bit of a slowdown.
I think it is and the reason is that slowdown has been discounted China's -- -- disappointment this year no one believes it's going back to 10% growth.
We do think the worst news is behind it it's gonna rebound in 2013.
Another area Chinese small caps.
These are companies that will benefit the most if consumption continues to rise in China.
Chinese small caps while it's it's just an unbelievable story that's been up and down but here -- -- the iShares -- China 25.
Let's get to see -- thank you very much.
Bank's list.
