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Global X Funds CEO Bruno Del Ama and Stifel Nicolaus Managing Director David Lutz on how the fiscal cliff talks impact investors’ strategies.
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Welcome gridlock in Washington over the fiscal crisis is triggering volatility in stock so where should you put your mind let's bring in our market panel we have David Lutz Stiefel Nicholas managing director -- -- -- Omar Abdullah Ahmad.
He is global ex fund's co-founder and CEO good to see -- both they've.
First -- we wanna get right to it because there is an opportunity.
That you see or that some people see as much of a 50% gain on and I'm talking about a whole country China.
China has been beaten down so much over the past year that some people are expecting a 50% rally what do you think about China investment right now.
Well I'll tell you gave you know -- at one thing about China that we've really noticed is that ever since that national congress went by and we didn't see any kind of stimulus coming from them.
The stock market's gotten obsolete hammered even though the economic data keeps getting better -- of one of the worst emerging markets.
So far year to date so with this lower chances stimulus you've had a lot of investors pulling out.
Well where we are seeing a lot of money going into our in the Chinese -- shares what are the Chinese a shares it's basically the Hong Kong proxy for the Chinese market and this is important because foreign investors like hedge funds can short this market and they're covering shorts right now.
Carson black is one of the bigger short seller bears one China and he said he's covered all of this tiny shorts.
And right now we have a noted technician out there and a market is name's Tom demark a lot of the faster hedge funds listen to him.
He came -- yesterday -- -- you know what we've got a good chance of a 50% jump in the Shanghai composite over the -- expressed -- specifically where do you put your money if you believe in China -- -- I would say the best way for Chinese for American investors to play China would probably be the FX I would -- iShares China -- -- -- it's a proxy for that Hong Kong market but that's because the other ETFs that are out there you know they have a lot more of -- spread because it's harder to -- underlying -- the underlying -- so.
You know the F -- probably what's gonna close trade closest to its index it's probably one of the sharper invest.
ETFs -- investors.
Okay for -- now you know your best idea depending on what you think happens with the fiscal cliff and you believe it's so draconian.
The cuts that would be kicking in January 1 is something will definitely happen that there will be a deal that said.
Where would you then advised people to put your money.
With tender so once in A generation opportunity with the energy Renaissance that's happening -- right here in the US com we are going to see tremendous growth from a number of companies particularly on the exploration and production space.
I specifically Iran to fiscal -- it's creating.
Short term opportunity with master limited partnerships are -- he's.
Which are really going to be the backbone awful lot of the infrastructure.
That's sad being built around the energy Renaissance we're seeing -- we're gonna see for years to com.
I saw a lot of opportunities with a lot of I was just calling energy the opportunity of a lifetime where it's priced right now.
Outlook I I would -- saying we -- -- US -- the acts he opportunity largest opportunity that we see that is not only.
I short term but we think it's going to last for several years.
David Lutz said -- -- on my thank you very much gentlemen good suggestions appreciated thanks guys -- -- waters.
