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Ted Parrish, Henssler Financial director of investments, on how the nearing fiscal cliff deadline is impacting investors.
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Short term death knell for the stock market Ted Parrish has a financial director of investments is their -- it's good to see you but you're very concerned about the fiscal -- How are you indefensible year I do know that -- -- but what about today what about now.
More coming up on defence -- but defensive but we still are exposed to the market is just.
Which sectors are we choose to to have exposure to not think that.
You know it is gonna -- -- choppy market until there's some resolution.
You know earnings season for the the third quarter -- and the knowledge great fourth -- the fourth quarter may be overshadowed.
By discussions on the fiscal -- I -- the market could be in for tough a rat the next few months.
Well last weekend the Dow the NASDAQ and the S and -- they all lost about 2% on the week you know even the NASDAQ now down five weeks consecutive.
A lot of the selling -- was dividend paying stocks investors are very nervous about.
What happens if that tax goes up to over 40% a what do you tell your clients now.
Well I mean we're still -- and dividend income opinions about something that you have to look at what type of dividend the stocks you're you're buying -- -- -- look at utilities and telecoms.
Those companies on -- on the dividends very much -- look at as almost a bond type income play.
If you look at our growth -- companies that are still gonna grow their earnings and actually have the potential to.
To continue increased -- dividend payouts than those companies should do fine so I think it's.
It is what type of company's that are paid a dividend that you own and also.
For five to playing up purposes -- you can shift.
Were those assaults in locating an Intel yeah wait what.
But here's the thing like -- -- -- specific types of of sectors I wanna get into one sector particular that was health care and that.
Is actually -- bet that you may that you're sticking with the what we saw last week was kind of a split and how those companies.
Real -- medical device laser maker sold off.
You know -- -- forty sold -- up on -- sector.
Still we're still overweight healthcare I think there are some select industries and healthcare that are going to be good HMOs and -- good in the hospital companies are gonna do good do good.
Also pharmaceutical should benefit because there's going to be an increase in the people of -- people covered by insurance now ones that may not do so well I mean.
That -- medical device makers are gonna be hit with a 2%.
Tax which is gonna hurt their earnings directly.
So I mean there -- ways to play health care health -- you gonna grow.
A lot faster and economy given that you know the number of insured people gonna become an alternate that the healthcare -- I do wanna ask you don't know what that -- headed to ask about -- before I let you know they have this cancer that trial incredibly.
A successful stock is she didn't up higher today -- like -- right now.
Ifill did a lot of one of those companies that was looked at as a one product wonder but now they have a company has some a drug that's in late stage.
-- -- testing for around.
Pancreatic cancer which is huge.
That's -- the company is up today and I think -- -- a few more benefit because he has in this pipeline that's going to be pushed us thought well over a hundred I think.
All right the next to a three years.
All right but you also -- -- didn't take the financial ahead and that is in the financials.
And eloquent noses Mark Murphy response had parents thank you very much.
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