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Rob Morgan, Fulcrum Securities chief investment strategist, on how investors should handle their portfolios during the fiscal cliff.
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And down should you sell your stocks before the fiscal cliff kicks and joining me out rob Morgan chief investment strategist for -- securities rob welcome back to the show if you are an internal -- I think he would hold through all kinds of devastation and is this something that make should thank.
-- -- and Mike -- A bit out facts well well Jerry and we've we've known about this fiscal cliff for a couple years hot new couple years -- right and I guess I would say that for the most part it's baked into the market.
And and as you said I've you've had him before I've been steadfast that we're going to reach a compromise here and -- and I.
And I.
Still believe -- -- optimism come for big kids.
I mean yes we've known about it for a long time but still there's been no solution well you know that the -- the president wants higher tax revenues not higher tax rates and and speaker Boehner has said we can do that by just closing a few loopholes.
The restructuring slightly the tax code.
And and so but of course questions will -- this happened before now both sides wanted to see where they were how they stack up after the election.
And then of course -- any decisions made eight -- you're gonna do what you have to do to win your next election -- the president.
Doesn't have a next election -- the road and I look at will do and and.
Yeah well who did you -- respond to something at Goldman Sachs put out its.
One -- there are economists believe.
Have market watchers believe stocks will tank 8% before year end.
And largely on the basis of this fiscal quit his books puts things says this goes and not just at.
Income because it obviously income taxes -- rising -- dramatically.
-- also taxes income from dividends right so all of the major streams of revenue from investing.
Get attacked.
Right if we fall off this fiscal cliff he says Sox down 8% -- say.
Well once once again I think I think he's everything he's saying is already baked -- -- interestingly enough his target for the S&P at the end of next year.
Is 1575.
Which is 16% higher that is right in my -- is a mere 1550.
So he's even more bullish in the long run the me -- my Chris of all I have a hard time looking at a six week period in saying.
Stocks up 8% stocks down 8% so it could it happen sure could happen but minutes.
It's literally kill people though who have been through.
20067.
And eight.
Seen their portfolios devastated by market action they're worried it's gonna happen again they have a lot of confidence in Washington or congress.
Should they do any thing to protect their flanks.
Well -- these yeah I it's it's gonna continue to be choppy market I like this large cap dividend paying growth stocks I've -- like this -- -- I don't stocks are gonna get hit here.
Well but keep in mind though too with their large cap multinationals and those -- the company does the US companies can sell into the emerging economy so it's not just it's not merely just the dividends were talking about it we're talking real growth in earnings for these for these -- -- cup that the dividends I think helped prop up the stocks and in sideways market but.
But there -- other -- though -- anything you should sell.
You know I I'm not like an energy and Telecom right now does -- does remind my underweights.
Aren't you and rob thanks for coming on tonight thanks -- eternal love him well -- volley -- -- without our -- -- -- absolutely thank Akio.
We'll be right back the answer to -- question.
