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Federated Investors Global Equities CIO Steve Auth on why he sees a bull market ahead after an initial pullback in the beginning of 2013.
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What -- bull look like in a bear costume and how easily can he shed his hide to come out swinging in stocks.
We'll just look at stave -- He's right next -- -- he as far as we convert remember has been a -- equities especially what everyone else seemed to be abandoning ship for the first time in years Steve.
You're putting on the bear suits.
I am uncomfortable stood doesn't -- well on a good time I don't exercise -- -- We've we've had this 1450 target lose all year we're right -- right now and we're just seeing more.
Negative in the near term the fiscal cliff you do the math even if they settle it.
It's gonna take some percentage -- -- GDP the worst case two to three.
Something less than that maybe if they compromise in the middle.
In the meantime corporates all over the country hit the pause button.
Corporate bonds via -- -- corporate corporate -- hiring people hire people corporations you'll do business individuals small businesses.
And we think the next story once we get through the fiscal cliff and sort of breathe a sigh relief.
Is the economic numbers are gonna come in a little -- -- But steam at federated -- thirty billion in assets under management you don't just sit there -- -- you.
I know what we did pull in our our we have pull ourselves into -- and equities -- told people to sort of hold your fire here we've made a lot of money this year.
We have a longer term target were still long term bulls were at 1660 for the end of next year which is which isn't a decent level here and by the way you were right pretty much what we've got -- couple more weeks here to trade but you were calling.
1450.
This year we will S&P -- Not too far from happy for a -- twelfth eleven points here this is it for next year what would guess they're -- We think economic equities re acceleration in the sense when you have put us but that's when you put the -- sit back on -- hysteria out -- -- -- -- I switch -- -- and they we get a little -- us here in the first quarter through the economic weakness a little bit of a pullback in disappointment inequities maybe five to 10%.
That's when I think you really want to be ready then when people are starting to cry again about recession which generally is gonna happen that's when you really wanna stepping -- -- grow.
You know I don't people who had to put their attention to the big board at the moment -- now cut our gains in half here we have been up more than a 130 points now we're up 66 so we're looking now.
It at at a loss at what let at least certainly a shopping and happier still -- -- -- begin at the moment but does something spooking the bowl so you you might be right here's these these rallies don't hold but.
Let's teach people how to invest around.
You're you're double cost -- here first.
The bears are so if -- bearish what do you buy right now.
Near term we'd be in defense of so income producing stocks health care particularly like within that area we like Telecom to.
But we really like being the form -- and the Staples has has place to hang out here and clips and somebody starts -- after your two pics -- you know.
It -- tough -- or 22% of nice dividend did you say what -- -- -- funny it's still got a pretty good dividend yield on within the dividend world Pfizer is still relatively cheap stock actually because people.
They're worried about the -- the pipeline it's -- but.
We actually think it's a big healthy company that's been undervalued for some time once you step out of the bear -- and your back into your ball -- thing.
What do you them hi -- rumbling cyclicals because that's where the real play is going to be as the economic news in the second half of the year gets a lot better so I want -- owned.
Consumer cyclicals and industrials in particular we like.
And I -- spread out into places like Germany China.
Is an emerging market that.
We've been buying -- in the last couple months speaking of China Steve's got to China play specific name you don't want to miss coming up he'll give that to you what a couple of other names as well thirty.
