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Diversify Your Portfolio

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  • Description

    Cumberland Advisors CIO David Kotok weighs in on the state of the markets.

  • Duration 3:33
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Yes.

You know what they say time is money and you are sitting on the sidelines waiting for a decision on the fiscal cliff you could be losing out BAA -- according to our next -- -- Chatter of the Fed's plan in the fourth round of easing may be just another boost for the stock market joining us now is David -- talked.

Chairman and chief investment officer at Cumberland advisors are welcome back to our show nice to be with you so -- -- in all the chatter from the president's press conference yesterday was the latest FOMC minutes and we know we've got an open ended policy here but the direct commentary.

On -- QE3 what's really interesting I think investors missing the mark here focusing too much on a fiscal -- investors are busy with the cliff there.

And they should jump off the cliff and on their way down they should take a look at the Fed because the Fed is more predictable.

Than it has been since World War II.

We know.

Rates are going to be low low low for years we know the president appoints the governors of the fifth and he has a senate that'll confirm his appointees.

Bernanke's policy will survive -- -- -- If you -- and you believed in your hard hearts.

That the ten year treasury yield was going to be one and a half for one -- three quarters for the next ten years would you ignored the stock market I don't think so.

But that that's what's driving the stock murder right now I mean it's this idea it's very straightforward -- -- you raise the tax on dividends and capital gains.

That you have to earn that much more in the market in order make a profit makes socks that much more interact less interesting people.

-- -- Absolutely.

Market is celebrated a possible Romney win didn't get it.

Now it says -- -- lock in a 15% cap gain break right now.

Which is why the market's heavy and it could trade -- for another 34 weeks but it doesn't trade -- for another 34 years.

And I think we get a year end rally takes CS and QE that we've already if you will enjoyed that's in it and we don't know.

-- answers we don't know it's a big yes but you're still bullish you're going parts of this is an entry point with all of -- -- bullish on accents.

When the world wide mature economies have a zero short term interest -- And now -- long term interest rate of one or 2% and it's going to be here for years not just the United States Europe Japan.

Sweden Switzerland Singapore the whole globe mature economies.

Says buy assets don't sit in cash.

-- assets but why would you buy stocks I mean there's other things to do I mean we it's become this world -- you gonna be punished for making money no matter where you turn.

So you have to buying things that you're going to be interest in -- holding for at least four years and in person after person is coming on -- saying you should buy gold.

You should buy real estate which is bottoming out right now I mean it just seems like stocks as is one of the worst options out.

I don't don't agree that it's one of the worst I say.

If you invest properly you diversify your risk which means you -- some precious metals you own some stocks we use EPS for stocks.

You own tax free bonds they pay a 3% tax free.

The treasury pays two point seven taxable.

That two point seven is going to go lower and OK so quickly in our last second asset allocation hi David would you recommend a piece of stocks a piece of the bond market subject -- your risk tolerance personalize it.

To yourself if you're 75 years old don't gamble where everything in the gold -- -- special.

RA paralyzed -- -- nice to see it.

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