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U.S. Trust President Keith Banks on the sectors investors should consider through the end of the year.
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What President Obama is meeting with labor leaders and CEOs as we discuss -- solution for the impending fiscal left so that the country boys that club.
How do you profit from it.
Eternal optimist Keith banks president US -- has been on the plus his explicit with several sector ideas.
Do you think there may be turning around now is gonna turn around you are watching the -- -- overall.
We are we I mean you know our our focus is is obviously first -- on the on the broad -- markets you know we we provide.
Asset allocation strategies for our clients and we're trying to get the the stock bond part of that right but we're we're optimistic and needs to be volatile.
But we don't we don't subscribe to the you know the the doomsday scenario that that's out there and -- some pizza you're telling your clients they can get paid to wait strike -- so you're telling them to set -- maybe not make any moves and -- and it's -- sectors that we saw a lot of sectors depending on.
Where they sat in the on the -- the presidential election night defense -- -- -- health care depending on who the company was -- -- fell medical devices spouse aware how do you feel about what you saw last.
Yet you saw some knee jerk reaction to the results and you know not surprisingly but but that that comes and goes so the -- -- -- saying.
Look the market's gonna be choppy there's there's not going to be clear direction to prod between down the end of the year we think -- thirteen 5214 point five range for the S&P 500.
So we're saying if you get -- that chop get paid to wait B&B in dividend paying companies especially.
Companies that will increase that we did did the dividend growing dividend as well as fixed income and their range -- that if.
Can 25 but at the same time you're sending go to those dividend paying stocks again last week that point to what we saw.
Market action a lot of those bigger names sold off -- and shareholders are aware that they're gonna get the short end of the stick thanks to Washington -- Looking to you can't reacted to very near term movement stock price and you just can't all that -- we take get.
And intermediate term reproach and if you like these stocks they pull back its chances are to build the position them so we don't we don't overreact to that -- -- is something positive here like -- particular wanna pay on housing because housing has had a Blockbuster year mean right is -- a 100% -- percent in some cases anything that trades -- over.
Well we'd like housing more from the standpoint that we think that'll be -- real underpinning for the economy.
We like the the the auto industry the housing industry huge ripple effect -- they keep on accelerating to the upside housing stocks not necessarily.
You know we like industrials we like technology we like global companies that are gonna benefit as the global economy improves we -- the US grows to two and a half percent next year the global economy grows 4% plus you also like.
Not -- sector.
Which I think is interest and I mean -- again a socks and performed fairly well this year but still GM under a lot of pressure not -- needs to be frankly of putting on the government's perspective right.
We get oil stocks.
We like the fact that they will contribute to growth this year.
Whether -- the right Stockton and the right way to play it not so much we like industrials generally manufacturing.
As well and technology we think continues to be very good play a can't mention some of those sectors they got at last week what I think about defense right now.
While the -- I think you know we were not playing defense big anyway.
Health -- were still concerned about for the obvious reasons right there's going to be a lot of pressure a lot of constraints you give what's going on them in a macro sense though.
-- we were underweight health care we'd still be underweight health care again look for stocks that gives you the the -- get paid while you wait benefit from global growth.
And and we think that'll -- would be the play when you move back into equities and we're still we're still neutral right now I would say that underneath that umbrella of health care if you will the insurance companies got a big boost thanks to the president's -- hello Obama care if you will.
But you think that that trade as may be over as wow.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- We don't think that's the best place to have your money were okay we be underweight is so high it's a dividend paying -- high yielding.
Equities and I miss anything an -- on the on the fixed income side what we like there is we like credit over treasuries -- we -- corporates high yield.
And we need some of the Munis like communities.
Essential revenue bonds things like that weapons minutes and then in the medium market -- really just the treasury market -- the fact that.
You got Europe which has got a host of problems those are are never ending you still have kind of and I centrists and in US debt to -- that continues if Europe starts to kind of get them.
Her act together -- well.
I think if people get more confident that Europe will will deal with its fiscal issues.
Then I think to be greater interest -- higher yields over there I think right now people worried about what with the -- with -- -- be.
So people have some exposure over there but not what they could.
So it if people -- feel it's it's time to go back then you'll see great I think what you're saying because those that were afraid of buying California's debt are getting -- -- -- now so I've been quite what as far as as Greece goes popular IQ thanks thank you very much it to be good to have you on the show are.
