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Nomura Managing Director George Goncalves and LPL Financial Chief Market Strategist Jeff Kleintop on how Federal Reserve policy and fiscal cliff conce...
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Kind of return of -- when you know Ben Bernanke's a Smart -- -- thought about these things has -- not -- teachers up against the wall here.
Well -- You don't look look at means that the Fed is it's just that he's up against the wall that all the world's central bankers are.
If you take a look the Bank of Japan the People's Bank of China in the ECB they all own 25%.
Of their economy GDP in assets on the central bank's balance sheet.
That's where the Fed headed.
Over the course of the remainder of this unit do we get what should we be shredding of the dollar into confetti.
At you don't just so that we can sacrifice it for equities have to get people back into the markets.
Is that it right thing to do.
Well it may not be that the greatest -- you from an investment perspective I think the chairman feels he's forced to do it otherwise seemed likely see a strong.
Dollar appreciation.
Would certainly wouldn't be good news for us in terms of trying to.
You know generate that you remember we.
As to be governor company's 40% of sales come from overseas that can be a real negative for corporate America -- further on hiring.
And and -- rating raising more pressure here in the near term only red army.
Certainly they're closing -- all of the same about it what you think George how to make money here we have what do you recommend at this.
Point where people might at least get some decent yield with their investment.
I'm I'm away from the decent yield aspect I think that lets see what happens at the start of the year you have we -- the fiscal cliff that's not resolved.
We -- of Europe which people think it's resolved -- -- resolved.
And so we -- recommending investors go down -- curve.
And yet you know commit that much in terms of wealth let's spell that out so look let's invest in four -- five years on an overall average duration of the portfolio because.
Investors rather have the ability to reinvest one being featured in case inflation -- won't spike you can invest in higher yields as the money -- comes due.
You have to kind of hunkered down I think for the next six months to see how -- -- -- economy pans -- -- fiscal cliff and really is your results.
That -- you know yesterday Robert -- appease some taxi medallions returning 5000 per second something over the past thirty years.
At missing something is -- some great trade out there at.
There are alternative investments certainly -- know -- you know the looked at part look at the world's emerging markets they're the exact opposite of the rest of the world they have surpluses and which I love you know.
Well you know -- -- it.
Did take a look around you know you've got it's -- opportunity here in China as their economies actually -- accelerating in recent months well and there are actually able to spend money you fiscal stimulus now austerity and.
They're cutting rates -- because they got a long way to go -- rates are high and they're coming down.
So they've actually got levers to pull that the rest of the developed world has already hold and has full bid that held to the -- so there might be some more opportunity as you sick by George what happens in the markets tomorrow do we recovery -- now.
I think the risk is what like what we saw September's meeting when -- sort of buying mortgages was all euphoria built up ahead of the meeting.
It's been kind supporting the market.
And the risk is yet you continue down.
George -- -- and Jeff -- top a lively discussion on write it down six point 5% you won't see them tweak rates until we hit that unemployment number.
Seems like a long ways away thank you both so very much closing bell.
