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UBS Managing Director Ira Walker and Rosenthal Wealth Management Group President Larry Rosenthal on the outlook for the markets.
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Cautious OK let's separate and the rest of the panel -- wanna go to you first you say that the tying to -- all equities is right now why is now the best time.
Absolutely very evident in my opinion -- the more acute over the next.
Six months could reach fifty and 7060 S&P 500 to reach 1576.
Which show wasn't by the way the financial bubble high and where we're just seeing good market fiscal cliff issues get resolved.
Maybe 20% count what -- -- don't -- What if they don't get resolved.
What what will delay the decision at -- you know at this point in.
And may be over the next three to six months to resolve the fiscal -- interest but there will be resolution over the next three -- I mean I -- say 1576.
Were -- 1409.
At the moment and that I how do we get there that's a lot of optimism we've really need to Ab rocket fuel for the market well that's -- -- Level and no we believe that over the next six months the market can reach their financial bubble why that would made many years ago.
And we think this is a great time to invest we think that this correction was absolutely.
A time to put money to work take a look at apple.
Apple was down 25%.
Apple's up sixty points from a closing day -- couple more couple days back and you we're we're bullish here.
All right we're just getting news by the way out there's been a lot of moving ahead of dividend payouts.
We're getting news that Disney is increasing dividend payout by is that 25%.
-- wanting.
45 cents twenty Barbara 45 produce -- 20/20 5%.
Is the increase on Disney's.
Dividends were seeing a lot of this Larry and of course it's all.
Because of what is expected to happen -- gender whatever.
The resolution of this fiscal battle inside the beltway is we are undoubtedly almost everybody sees an increase in dividend stocks Larry Rosenthal so.
Isn't that weighing on decisions very key decisions investment decisions that are being made right now.
-- well it is I mean you know a lot of these companies are paying any special dividends out now in.
In in light of the fiscal -- coming up because we don't have clear direction and tackle -- was talking about.
Very optimistic long term now because this includes gonna deliver us some clarity direction here -- -- with the next.
-- 33 days there's either way it is being modest is just clarify forgive me Larry for interrupting but December 28 that is that time just before the first of the year but when they're gonna deliver this sector 25% -- dividend go ahead.
That's huge you know that's that's a great opportunity and and you're taking a look now -- monetary policy not only here but around the world central banks have a wonderful backdrop for growth that the Fed very accommodating.
Our corporate balance sheets are extremely strong in the fiscal let's go to deliver clarity direction that's what business needs as well as Wall Street so that we can know.
We're investing more to shy away from so we can protect our clients' portfolios for deliver growth and income and -- -- -- aren't optimistic cold virus some people or.
We're saying that that the dividend trades was overcrowded and suddenly you've got close to a 110 companies tried to push their dividend up before.
December 31 day in would you -- -- at this point I know it's short term but would you get into more dividend stocks.
Very interest in Costco did that today that stock was up five or six point one time seven dollar dividend there my my Mike my feeling here is is technology leads the way.
-- -- -- FaceBook Google -- the way we have the financial following and ultimately you have the retail stocks consumer discretionary stocks.
Moving forward and we we get right to that 1576 level over the next six months.
Larry absolutely -- like White -- -- as well okay he likes to god but you like stocks in general Larry most of her clients are retired.
We're very close to retirement age and yet you were 65%.
In equities as opposed to cash -- or long term -- up.
Is not a little risky for that age group.
Well you know that that's an average we have clients that have more fixed income vs less fixed income depending on their age in the risk tolerance.
As far as her acceptance level go but when you when you take a look at at what we need to do here going for we've been very balanced all year long.
For -- has been holding up from the amongst all the and clarity.
So so it's gonna give the position now once we see which way we're gonna go here with the government spending cuts in the tax increases or however they play out to tweak it to move a little bit one way or the other towards equity or fixed income.
However we've been.
It you know big picture making sure that we stay away from high beta portfolios.
To minimize volatile.
You know -- of Larry -- just looking at everything that you like right now and and you are cautious short term is it all fiscal cliff.
Absolutely it is when you take a look at all the things we've done so it -- that you are resolved you'd feel much better.
Yes I would I feel better from the standpoint of clarity of direction you know we have to silos in the fiscal cliff the government spending cuts and the tax side.
And we feel that they're gonna negotiate them both down somehow put forth a package.
That packages and going to be be torn apart -- -- to not pull.
Too much GDP out of the economy -- -- growth happening but it's if it's viewed to take too much -- that the economy.
We could see ourselves slip into a recession and that's why we're cautious short term right now looking to -- -- -- as soon as they deliver package about the fiscal.
Quickly I don't know what's your price target on apple.
Apple 725.
Who we're.
We're -- -- I wanna nuisance goes into this very quickly if you do -- -- seconds institutional ownership Google 86 -- 66 okay of sentinel a thank you very much Tara Parker you very much -- Larry and mark we'll come back to.
