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Hennessy Funds Portfolio Manager Neil Hennessy on why investors should focus on U.S. markets to help boost their portfolios.
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It points.
Talk about a -- okay you have the US some -- of this fiscal cliff Europe is still a mess with its debt crisis China slowing down.
So what should you do with your money besides.
Hiding it deep under the mattress my next guest says there's only one place to be and that's the old red white and blue USA USA yes Neil Hennessy is sounding.
Like Olympic chant USA USA and you are over Hennessy funds.
After your name and -- a look at this let's say okay good -- with somebody who seems optimistic.
And URY.
Very optimistic -- you look you urges talking about earnings they might be down but there's still learning it's all these companies excluding autos housing and financials.
Made a lot of money in 20089101112.
And continue to make money while everybody else was whining and saying it's so awful the world isn't exactly and if you go back to 2007.
That was -- heights of corporate -- -- at one point seven trillion dollars today it's at two trillion in people are paying attention and restaurant near zero.
Right you're looking at a thirty year bond give you two and three quarters percent support ten year.
At 16817.
-- and you can actually buy to hold Dow Jones all thirty stocks for 3%.
OK so that's an important -- to be married folks you can hold.
All out thirty names for 3% yield which is obviously better than the one and change that you would be getting from the tenure because you feel so much better knowing that at least he'll just get paid back in thirty years.
So here comes the question.
You don't you don't think we're gonna go over the fiscal cliff.
But you think we shouldn't -- Well I'm just looking -- if you're if you're going to Washington -- gonna compromise -- of sake of compromising -- the same as making an acquisition for the sake of an acquisition.
It doesn't make sense of it's not in the best interest -- that company.
-- in this situation the best interest of American people why compromised if we go over -- fiscal cliff.
On January 1 I will be -- team.
Not supposed to use there -- -- -- up.
That it will get a right within the next six months and we keep talking about 600 billion dollars that's -- fiscal what it's fifty billion dollars a month.
But in the name in the near term if we were to do that and you know that Wall Street is so emotional.
Stocks might take a pretty dramatic hit and what would you then say to your shareholders are called up and set us -- you tell -- Don't worry about going over the fiscal cliff -- me could you stand up -- investors and say don't worry.
Absolutely because we have to get it correct in if you start to look at just the numbers.
Just because we sort of fiscal cliff do you think the companies are gonna start to lose tons of money they're not they're just gonna continue to hoard the money.
But if you go back in just look at history English you -- I've been around a long time you not as long as me.
But you look at the late ninety's and Bill Clinton raise taxes and -- -- will look at -- well we did what I was retail euphoria.
In the tech market if you had a dot com makes a name -- stocks -- not.
If people say that it is what it is -- it was reality that but.
The rich the people with the money stop moving their money.
Because tax rates on dividends and capital gains -- backed ordinary income -- In men and to admit that's where you saw in 2001.
And -- to the market lost 45% of his mark.
So you're not worried about what may happen here let's talk about one area that's a little stunning to me because -- a Smart guy and we'll what he's saying here.
One other country that you believe is poised to really -- If I've heard it wants averted a thousand times -- still haven't come to pass what does it.
Japan.
Japan if you look at Japan you look at what's happened with corporations over there they're doing the exact same things corporations over here doing they're making tons of money.
-- what you have to do when you invest you have to segregate out companies the economy.
Politics.
Because essentially to.
Overall what's been dead money for here don't stand for twenty years and deflation but if you really -- so -- the 21 sticker we're going to be okay.
That's acquitted him that's him that's very funny you should -- a -- -- But essentially when you start to look at what Japan is doing -- paying dividends reason dividends are buying back stock -- making acquisitions are doing everything right.
From a company perspective -- just got a very very pricey currency right -- -- -- -- -- part of Japan has so bad why we have the strongest currency in the world.
I have no answer to the hedge -- well I think that's that's what that's what I'm just saying it takes 'cause -- horrible -- -- -- But essentially at some point -- -- -- by the way X futures.
And it's gonna it's gonna start to work that strength -- the yen is starting to break and from what I know about commodities after 33 years.
Once a currency starts a breaking go one way -- last five to seven.
Got to ask you that this Argentinian situation and nobody let your eyes glaze over here but the situation upon payment that is -- of about if you look at it all together about three billion that Argentina -- and now they're saying no we don't we're not going to pay it.
-- -- worried about systemic risk of this becoming another at least worrisome type increased type of situation.
I'm not really to one asks that question to.
You know one night I look at the amount of money that Argentina borrowed in what the banks -- -- put into woman in the eighties forced by our government to put that in.
Did this save Australia I -- not Australia Argentina -- You know if that became a banking financial crisis to -- Stick around you -- because we teach you --
