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My next guest says exactly that the fiscal -- Israeli largely just noise -- that you all should focus on the fundamentals like.
We've actually had a decent recovery here he says and we could be leading.
That is the indicator for the markets and 2013 joining me now out of Fox Business exclusive is Michael church he's asked capital's chief investment officer.
And president for housing with all of the drama going on in DC but it looks relatively decent it does -- -- piece of data two days ago about that and a.
And nothing dramatic and I think the trend is very clear now.
And -- you're seeing that reflected in the data.
-- senior reflected in the stocks as well as the homebuilders have done exceptionally -- so do you like the homebuilders now I think they've had -- Incredible run we don't dislike them -- thousand -- were -- interest in the how would you play what you correctly point out is a decent not only bottoming but slight moving to the upside.
Well I think you have to look at the financials I think they're next year the biggest beneficiary of an improvement in housing market and I think that's across the -- but I think specifically.
The larger banks where they're really trying to keep valuation watch because -- -- as housing gets to -- legs so shelve the banks as well as it comes to lending absolutely it helps it helps them across the board capital markets lending -- -- -- -- is -- -- are rising tide lifts all -- and and housing is so important also for employment accept that the rest -- their businesses have been very -- trading volumes -- if they can't take as much risk as they used to they're complaining about that they feel that their margins -- getting squeezed.
Well I think you wanna focus on the banks have to have exposure to win the united I would be little bit careful about those of remorse for pure plays on investment banking or brokerage.
The financials though putting that aside what else looks sort of primed and ready and I kinda wanna -- have really like housing but don't -- the homebuilders is there another way.
Sort of decide -- to -- back -- play.
I think equity markets as a whole will benefit next year's housing market continues to prove so I suspect that if anybody pays attention that they're too busy.
Looking at other things such as this bickering over the fiscal cliff and I -- -- home builder thinking you guys wanted us to do well finally we are nobody's paying attention.
Well idea we view of the fiscal cliff at this point as the volatility of the this is not a market event this is something that sort of akin to what we saw last summer.
We have the debt ceiling debate and market sold off dramatically and of course we spent the next six months rally.
Remember that lesson everybody that is very true all of the worry about that that ceiling and meantime the markets skyrocketing and the slower dumber money as parents used to call it that would be the retail investor was so scared they stayed out -- -- that -- a decent rally.
I do I think the public is more scared than they probably should be but the reality is that I think this is largely okay since we have been hearing you're the president -- you've got half a billion in assets under management -- -- -- -- -- would set -- got about ten ground where would you allocate that how would you allocate them well I think you wanna put a piece that ended in at least one bank I think JPMorgan looks like the best I think it's one of the best managed.
Despite everything that went on the summer.
They were able to withstand it.
I think they have a great balance sheet I think they're really wonderfully positioned to benefit for over -- return and housing markets.
JPMorgan obviously has has done pretty well over the past -- certainly -- to date but I guess then the question becomes what would you do with the rest of it is treasury.
Is that place steal that money was to tweak the adults I'd stay with the -- market.
They in its entirety.
Doctor look at and yet some in cash some inequities some in treasuries you say don't bother now I I don't know.
What is -- to -- at this point I think you really putting yourself at risk in the long run.
I'd be very wary of treasuries at this point I think that's probably the most dangerous trade out there unfortunately and probably one of the more popular -- it's.