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Kanaly Trust CEO Drew Kanaly, Compass EMP Funds CEO Stephen Hammers and SFG Alternatives CIO Larry Shover on the impact on the markets of the lack of ...
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It let's go to market -- -- what they think about this we have Larry show over he's in the pits of the CME -- -- -- tails tells us why that deal.
Already priced in -- -- market is Stephen -- says.
The fiscal -- is Y two K all over again I wanna start with Stephen here because Stephen's been looking agree -- for a long time.
I guess -- and what are your portfolios but is it too hot to handle even though it's it is it is popping after hours as a result of these earnings.
It is a very hot stock to hold is -- not.
Do you have consistent earnings otherwise wouldn't have it.
But because we wait securities based on the risk we equalize the risk green mountain coffee because of its volatility.
Actually has the lowest exposure to our portfolio our large cap fund.
Which is only -- zero point 03% exposure so we don't have much of green mountain coffee but it is consistent earnings -- -- you know that the trade action of the day -- it looked pretty ugly today but -- there were some really good winners a couple 52 week highs.
Nonetheless -- -- -- you put this he said there nuisance headlines coming through and a couple of them came in the form of in essence and I guess is coming out of DC this -- talks have stalled as it pertains to the fiscal Clinton's got what constitutes a nuisance headlined a just cause the markets to -- I think -- Mena and Amman actually I feel like I'm standing in the wrong line as -- weren't -- check -- line.
I mean a market continues to shrug their shoulders over these things we have incorrigible teenagers in Washington.
We just cannot figure this out right now it's pretty simple taxes and spending.
They want to make headlines and I think the markets becoming a little bit fed up with the right now and that's why we're seeing the action behind me.
And we'll probably see more -- -- tomorrow all right well but stroke and -- we got to face it even though the market came off its lows it was a negative day all of the indices were down.
That NASDAQ has stopped its winning streak.
But look at these headlights aren't taken from a different active -- we have a lot of positive headlines when we woke up consumer confidence the best since February away.
The Richmond fed saw saw positive -- for its region.
Home prices continuing to rise durable goods better than expected there was progress.
On those Greek debt talks -- despite all of these positive news items we got today.
We ended up with a market almost in triple digits.
Well I mean they're they're pricing that we are going to get a deal right so anything that says that might get.
You're gonna have days like this until they announce a deal and the and the deal the market's looking for -- something to extend the tax cuts.
Until next year when you've -- in new congress and you really go to battle over the debt ceiling talks don't -- and then ultimately some.
Better tax reform so it would be a very big disappointment in the markets if we don't get some sort of extension or or a patch.
Between now and in your -- that that would be a problem.
I -- watch -- Stephen what Citi said it's just the fiscal cliff talks are like Y two K we all remember there was so much hype about Y two K when he well of course we're going for 1999 to 2000 everybody thought.
-- -- can die via our computers somehow and it really have a computer gridlock is gonna happen exact -- digits so so tell me why why do you call it that way Steven you know -- You -- investors got to understand on January 1 we're not gonna fall off a cliff.
Basically what's gonna happen.
Is we have a lot of increase in taxes a tremendous amount of cuts.
You don't.
That is all throughout 2013.
And if you think that our politicians are gonna allow that to happen everything to happen the perfect storm.
The answer is no I agree to drew something's gonna happen decisions are gonna be made even if it is temporary.
They're gonna soften the taxes and they're gonna stealth ways to make money how there's no question there's -- -- money.
The US market is a great place to be.
We even though we have slow growth there were expecting slow growth.
The US stock the large cap markets great -- him.
But drew the fact of the matter is we we don't have a growing economy having a -- less than 2% growth is.
Is minimal at best can we don't have.
That much of a pick up but the jobs picture -- -- those two things change.
Are we really gonna see an economy that that we can call moving in the right direction.
Probably not 4013 -- mean what what are you know already you know.
Everybody that can is accelerating income.
-- to 2012 ahead of higher income tax rates next year.
Certain -- pulling a lot of activity this year so Tony certainty is going to be soft right out of the box furthermore.
Corporate earnings they've done about all they can do on terms and improving margins and tell you really have growing top line income you really can't do more mean how -- to pay a higher dividend.
Why was actually kind of surprised to see don't wanna you're -- X is for me I'm -- of dividend stocks and ETF.
-- Zell I like DV why is this symbol are cool.
Aren't you concerned though that we they doubling some say tripling when he added all the extras of the tax on dividend as a possibility.
That in fact dividend stock issue -- said dividend issuers are gonna be hit hard in the stock market.
Well historically dividend payers.
Ten to survive whatever tax stormy throw -- sure there's a little disruption up front but it really look at the long term.
History dividend payers in all types of tax increases they tend to survive in the long run so there -- many here near term they're gonna have a little disruption.
Little problem the good news of tax rates not going to a 100% on dividends and the tax rates going up on all.
Income not just dividends so it's always relative right so if you own treasuries the tax rate on treasuries is going.
So is it it's it's all relative when when you look at on an after tax basis thought it -- overall -- idea you have to look at it for capital gains to.
I want it to Larry once again because -- UN and the traders really -- sort of moment by moment minute by minute but yet when you stretch it out you -- But the NASDAQ and the S&P over the past 52 weeks are both up 17%.
So weekend and we can wring our hands always want but the fact is that stocks have moved higher as everybody -- stay away there all these.
Head winds and questions and problems.
Yeah exactly I mean.
We have a gift this year I mean given that -- broke that we had in the US given the problems we've had the US and we've rallied all of this way I mean.
To retrace a little bit I still -- -- don't think.
Anybody thought that the S and -- would be where they are today right now at the end of November but Stephen I don't think anybody thinks that we're gonna see the same.
Because you know obviously the economy has slowed down a little bit but it's still growing -- It's a great place to be there are problems in -- We're gonna probably had negative growth but the time is on our side and it will get through this.
And the focus is being Smart diversify an equalizer read by the way did I hear -- throw away from view that were probably gonna have negative growth you think we're gonna go in a recession in terms of Europe.
-- US is -- frustrated and yeah definitely over an -- right -- so things are bad but it's better to the alternative that's exactly right.
Thank you drew drew could LA's Stephen hammers Larry's show we're we're gonna come back.
