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DLS Capital Managing Partner David Steinberg and RDM Financial Group CEO Ron Weiner on what will boost investors’ portfolios in this economy.
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I so let's get to today's action repeated Sandburg -- CLX capital managing partner.
Ron -- president and founder of RDM financial group.
-- -- EU first EU he seemed to think that the global markets emerging markets in particular are still going to continue to ride.
We even hearing otherwise why do you think that.
Well first off we had a good news this morning from China that there wrote that you're -- GDP is up a little bit.
But exports are for a lot but it certainly didn't come from Europe so it looks like Asia and the rest emerging markets are holding their own.
This going to be about 800 million new people on this planet by 20/20 and 95% of going to be emerging markets.
So they're more people they need food they're more rise there -- a wealthier than they've been ever they're gonna eat better.
They're gonna buy Smartphones.
I think I think -- global economies what's gonna they've been emerging market economies what's gonna pick us all up if if if we do get picked up.
Well David Steinberg -- markets are hoping that the Fed is gonna pick -- up even more than the Fed already has done so and there are signs I think.
Bothersome worrisome signs coming out of the -- that there's no wind of this money burning.
Wall Street Journal just -- interview with the San Francisco fed president John Williams.
In which he told the journal quote in terms of how far you can go.
-- of the money pretty I don't think that were anywhere near that kind of limit it seems like.
Katie bar the door there.
On all distance.
Absolutely look this is this is not been -- not -- coming on for a long time.
You're a student of history -- of going back the Roman empire and Germany England and make any major you know.
Economic.
Entity in the world but look how close runs -- -- -- -- to forgive me for erupting but look at how those runs ended with a via our republic and Germany super inflation his usual way these things and well we hope eventually you know right now -- -- this functional governments in Europe United States as well as in Japan.
And it's too attempting to print money to solve all these things and is long as the markets are willing to you know absorb.
The -- in the capital things will continue to move forward.
At any any that looks like you're gonna fix you know the fiscal cliff is going to be something that implies a little bit its longer some austerity markets do not want to see austerity.
Voters don't wanna see austerity -- you know it's probably the right thing to do in the long term so I would say you know you just gotta recognizes the current environment where it.
All right Ron so based on the fact that the -- -- keep printing and you think the emerging markets of the way to go let's talk about some your picks.
You like three sectors technology oil and gas and of course food as you pointed out the world's gonna start eating -- eating better.
-- -- -- -- Well enough -- -- the oil and gas exploration and transportation.
In the United States particularly is what we like.
MLPs there than a place where -- have about a 9% allocation.
A couple of reasons one someone's got -- transport oil this oil from.
North Dakota through the plants.
That's growing at an an incredible pace.
They're high dividend payers -- tax advantaged dividend payers which is going to be an incredibly important aspect of investing for a lot of investors.
At the next year.
And the world and the United States wants to be energy independent.
So the oil and gas we like the ML -- PAA is is one of our major holdings.
Plains all America it's more book commodities -- it's it's a good it's a good solid performer.
Returned -- 100% past three years we think they'll continue about a 4% dividend so that's -- in that space.
And David you're you're going -- you've you know -- think that the Fed is gonna continue to print money no matter what and a lot of that -- also for commodity plays the oil you like Marathon Oil.
And can Royce gold -- explain exactly what they do.
Kinross kinross suppliers want -- -- probably tops five or six majors.
It's probably song at the largest discount to all the majors that are out there got to China reserves and basically they had been had stumbling -- last couple years and it's really taken tall on the on the stock but they have.
Reserves are so far so good that they've got there and the -- in the business now for cash -- And as long as you are gonna continue print money highest -- a variable in burst of -- money is gold.
And these are these companies basically the printing presses for gold -- I I think that's a great awake it's a turn around camp.
I have to ask about one of -- -- which is Arch Coal we saw this huge run up and call when it was thought that Romney had a chance to be president Bob because he was for -- You're still for Arch Coal even though Romney loss.
Yeah could be the reason these coal stocks are down as a confluence of a couple of things -- had really low natural gas prices last year.
I you had a slowing in China for the metallurgy.
Metallurgical and he had an unbelievably a second early third standard deviation.
Winner that was warm.
And those three things -- combined in lined up now that goes on on top of the fact that you've got the administration you know trying to shake down coal companies and go away go you know clean energy the reality is the the way the greatest set up the power grid.
I you can't just do this overnight is gonna take years and years -- we a soft coal.
In the meantime if you look at the IEA 7080% of new plants in the emerging markets which I agree with your other guests are gonna grow and -- and they're putting calling.
Rhonda going to be -- exporting the call.
I know you also like Procter & Gamble and -- delays but let's talk about where you think quickly the -- and he's -- end this year off we're up today we have a great day where we finish on December.
31.
Well if there's a cliff five figure will be down 1015%.
If we go over the cliff.
If we put -- -- in which is our best guess -- be some kind of patched -- -- maybe five or 10% higher for the end of the year.
Then there's risk after after the end of the year if we go over the cliff then they'll be opportunities after we -- so -- Have six of one half dozen other can't expect.
My fingers -- -- for a patch of some -- let's hope it happens to them out this market to keep going up.
Nice -- by the way.
Looks like -- settled out of 172.
Points on the -- out of the plus side huge day today yes good -- -- Sandburg rotten Weiner thank you very much thanks Jeff and have a great weekend what life.
