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My next guest is helping his clients' balance the portfolios of what he says is a very.
Uncertain time -- space Kaiser -- personal wealth advisors chairman he is now here Fox Business exclusive.
Volatility ten it is all about volatility you say get ready for the ride.
I do for a number reasons first -- now about to go through hopefully.
Budget deficits and the fiscal -- discussion which means that.
Anticipating -- that might go knowing that the tax rates are going up effective January 1.
We'll caused many investors and business to be very uncertain -- as they plan their future business Claiborne in between thirteen point -- We also an innocent taking that you kind of -- what we're going through now with the but the fiscal cliff impending fiscal let the damn.
-- the -- -- that we had back in the summer of 2011.
Because at that time.
Obviously we were having the debt ceiling debate and the market -- huge hit for that you're saying we may be in for another woman.
Well that's right any -- you can if you look at the chart data -- -- July and August of 2011 as you call the bond rating.
The deficit the debt no real movement at all through our clients were very concerned with about -- number rebalance.
And and then looking at a chart safe from September 15 probably to the -- November 15 -- the same thing now occurring he saw the markets reacted after the election.
Continued at a certain despite the president's comments and John Boehner come.
Right -- SA obviously we're looking at a -- this -- just over the last couple of months and you're saying kind of be prepared for that you know older.
A lot of the of the -- that come on.
The kimono so well you have problems with earnings but also you can't ignore that spike to the downs -- -- after the election what did you make of all about last week well greeted.
I mean heading in.
It to the election that there -- a lot of sentiment that -- did the markets the financial markets would have preferred Republican.
-- and that therefore Scully written work for all -- they're being right and there's a view that there's a lot of financial regulation presently in more to come so and so a lot of that at least from the professional investors -- probably where they were.
Analyst okay they're ready to say but I think that's gonna settle off my my point is I don't think you're gonna see 300 point swings.
You you might see back in Gilliam -- period of July and August 2011 you can easily see a 150.
On any given day maybe a little bit outside -- because this is going to be very very -- difficult negotiation costs.
If they can't that would deal said that it was kind of 5050 split into what we've heard from John Boehner so -- -- the president tapes on their polar -- still what they've they want don't want what they're gonna agree to but.
If there was something -- taxes were raised on say individuals making over a million dollars for instance and in the short term extension of the bush tax cuts maybe year kind of a -- -- aria you know over the market make of that -- -- would have.
It be positive reaction we've already heard house speaker phone your state -- K with the tax free increases to fifteen that -- OK with that.
What they wanna see is additional spending cuts and that's where this fell down.
In the summer -- eleven.
So spending cuts were not there.
But give us some of those spending cuts reflect a lot about sequestration obviously the defense industry you've seen a lot of pressure concern about.
Net -- -- look at Wednesday of last week and -- defense stocks selling off.
Have medical device makers selling homes and in opening the bets were hedged.
Companies already laying off employees starting September I'm of the view they were not -- government can't become won't pretend to million dollars in cash on the silent want to know that that's what's at one point seven -- What is it gonna take what -- it take for all that cash to get back just a little bit of certainty the -- If the if if the tax cuts go up in the sequestering commences you're you're gonna take 4%.
Out of GDP starting -- 2013 that's a big number.
Then you have to remember trading partner countries.
And you're right we're running surplus imports okay.
What does that do -- him to give them confidence they can sell their goods and -- this year -- now taken all that purchasing power out of the economy.
It has very -- and things yeah I think China's.
Big question mark there which what you're talking about we'll see you just -- his -- great to have -- on the how they appreciate you being here.
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