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David Dietze of Point View Wealth Management argues the markets have already priced in the fiscal cliff.
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Saying on this issue forget kicking the can down the road until next year our next guest says the tables could be -- For lawmakers to cut off making a real decision on the -- for another four years David -- what you behind -- president chief investment officer.
Is here you think this is a real possibility.
Everything stays as as because they'll cut a deal -- not -- at.
Italy and for two reasons basically -- very argument just are gonna give -- to pro growth -- in a very weak economy.
Unemployment is close to 8%.
If they.
-- raise taxes at all that just totally counter to getting this economy back on what track it's totally inconsistent with that mr.
Bernanke the Federal Reserve trying to do it's it just doesn't work meanwhile.
And -- Bernanke is the only adult in the room at this point you look at -- -- -- congress that would make -- and -- and other acting like children if you look at the recent polls mr.
Bernanke's he got it pulled us out.
Of the worst downturn since 1930 he's raised to stick it.
Al so money is flowing out.
To raise taxes or cut spending -- completely inconsistent with a low interest rate policy that he'd gotten -- when people's civil way and should we address the deficit is the same question is when should mr.
Bernanke start raising interest rates he's already told us but to about 2014.
He says inflation not a problem you certainly don't -- it it's a -- -- a problem.
Why in the ten year treasury just one point 6% wearing the bondage of money no wouldn't worry about the deficit right now they're worried about slow growth economy.
What you're saying if you think that the markets -- -- kind of priced in the fiscal club argument if you will but why don't see.
The markets -- so volatile when John Boehner comes out of speaks I'm almost afraid to see and talk again today because you know senator Reid comes out down.
Down up I mean yeah there's so -- for action.
-- you can't rule out the risk that nothing is done.
And they don't reach an agreement and of course if taxes go up if spending is cut we're gonna be in a recession next year unemployment -- to 9%.
We can't rule that out but it doesn't make any sense to let that happen for.
The -- the administration for example to say.
The principle of punishing the wealthy is enough to allow the rest of the country to go into a -- it doesn't make any sense what.
We see the numbers and it shows that that even just taxing the top 2% to do nothing to actually deal with the overall deficit problem but you also think really at the end of the day.
-- don't matter about the deficit there were completely focused on the wrong.
Issue and you're -- long term investors.
Its debts don't take -- Yet stay the course Democrat.
Actually -- stocks are still cheap you've got very obvious policy makers at the end of the day this is a man -- problem that's about -- number two we can fix it finally.
The stock market is not just the united states of course -- he'd take a couple of like Coca-Cola 80% of their sales are outside this country and finally of course even if we were to go off the cliff there are some long term benefits we'd have a lower deficits at the end of the day if you get that long term horizon you're properly diversified stay the course.
Like financials -- like Japanese stocks you like that AI GS stock has run up about 39% over the last year despite all of the government issues -- government involvement you're sticking with AIG why I recommend that.
Going into a clip discussion -- well first of all.
There's nothing about.
It is sandy in the recent events that would cause anyone not to renew their property casualty policy doubt -- you know no matter what happens economy I think people are gonna pay that insurance is the dominant provider is trading 40%.
Off a book value the big concern the government overhang but guess what the government's gonna get out very quickly now that the elections past when mr.
Geithner it's off the job.
The new guys gonna say we're now looking -- Did the losses on mr.
Geithner is books and so I I I I like AIG.
For the longer term the new guy the new girl whoever ends up being the next mr.
Geithner and Clinton the portfolio -- -- -- Iliescu this you know it.
We're talking a lot about about dividend payers there's been a lot of focus on dividend payers because of the potential for 39% head.
On taxes on those in the -- break for percent depending -- -- make more.
That the same time you're saying that they -- stocks you like right now the dividend payers and Chevron it's a Honda -- mean you you like these bigger -- stock name.
Yeah I mean basically we're looking at the fundamentals we're looking at valuations at solid dividend it's a clue that you've got a good.
Valuation they're so it's not just to dividends by themselves if they don't have the earnings it will honor that dividend then it doesn't matter.
Great way.
And put our fiscal close or is this -- David -- great points different points thank you very much great to have on the showed that.
