Also in this playlist...
This transcript is automatically generated
And -- what are part of -- -- thanks because what an interesting day with bizarre behavior with the markets down -- aegis capital CIO and senior managing director joins us along with Eugene profit profit investments founder and portfolio manager.
Stamps do you first you've been a little more bearish than Eugene all along but I guess any downside to what you see the Fed announced today people are worried about.
Tying it to six point 5% unemployment or at least even continuing but.
Are we missing something here.
I think the -- being weighed two transparent and I think that's been an issue the communication.
-- he talks along I have not so sure about that he's got the stage in everybody's going to be paying attention every utterance my problem is.
That the half life of the QE effect is getting shorter and shorter this one's an hour to.
Last time it was a half a day to the next morning which so far was the annual yearly high.
I'd expect that will still be the annual high and I expect we're gonna have challenges from here because the Fed is now.
Given up the ghost on the political forces fixing anything substantive on the fiscal side.
And they've given up the ghost in terms of the economy writing itself so now the -- -- in total control captain first -- and chief engineer and that's a problem.
While Eugene lets just -- -- really five point out what happened today because.
Operation Twist was just essentially changing one kind of treasuries for another -- -- -- This is not they don't have any -- short terms to trade and that's why they actually have to -- this is.
Really is close as you can get the pure monetization.
Of the debt.
So toes so to stands point I mean this is this is essentially absolving the politicians from doing anything substantive on getting -- rid of the debt because the Fed.
Will buy it.
What is for now and I actually I think at least someone's being transparent.
Ed I think what the fiscal cliff.
-- essential if you don't know what's going to happen.
On it's actually pretty good to have the Fed's.
As a backdrop to say that we're gonna continue to inject liquidity and into the market we're not as concerned about inflation.
On that we're going to try to make certain that economic growth continues right now I think that's very important for the market -- -- -- What does it stopped though he Jinan and I'm not talking about -- look they told the six point 5% 2015.
It just seems like it will be very -- to extricate ourselves from what has really become -- sort of this gigantic pillow under the markets were addicted to -- stand makes that a credible point the half life.
Israeli running out period saying you know it's like a heroin addict our you know you just -- not getting the same pop here every time.
Well I would I would agree it's a list that easy money is a very attractive but I think there is once of aligning.
And some of this confusion if you look at all the companies that accelerate and com they're dividend payments on -- toll one thing that corporate balance it's a strong that they actually have the cash to put forward that -- certainly could have been used for investment.
And I think they still have -- -- that once we get some.
Clarity around what -- tax scenarios going to be we get some clarity on what's -- fiscal policy is going to be.
Corporations will begin to reinvest again I think that's gonna drug Mark -- Will stand let's talk about dividend taxes for second because they're probably -- -- you just said essentially what Greece what Greenspan.
What Bernanke just did was give give the politicians are free pass -- go ahead we'll buy your debt if you work -- that that will -- for it.
That he's probably dividend taxes will have to go up and yet.
You were in favor of dividend stocks why don't you think the higher taxes on dividends will turn -- people off to those stocks.
Because cash flow is the only return everything else is notional and let's -- the -- a fact for really building wealth and and enhancing -- that's our Armonk truck.
In terms of the situation.
We got structural issues we've got a deficit we've got ongoing and not just monetization from the Fed's perspective but.
We've got added debt and we continue to add to debt and then we got this entitlement -- bomb which is an actuarial night so what they have by -- I know you don't pick stocks specifically but are -- sectors is there an area that'll work for our viewers right now shore since we think we're in -- part of -- cyclical pattern and the real deleveraging has not been allowed to happen more naturally.
And the synthetic intervention has -- put off the day of reckoning.
We remain very defensive.
And that means high cash that means cash flows from interest and dividends.
That are sustainable going forward if we slide and get into a downturn we -- -- make sure we got the margins.
For error and our pro forma miles to make sure we keep getting.
Okay we we've literally run out of time but -- want to squeeze one stock out of if I can Celgene.
-- -- health -- corsets it's a bio pharmaceutical stock why do you like it now quickly.
What selling arm below the industry are this friends growing at a faster rate.
My I think demographics suggest that health -- -- -- be attractive area and eventually Affordable Care Act confusion will clear up so I think -- goodbye.
All right and it's down a percent today so buy when it's low thank you got -- stand proud.
Eugene Robert good to see you both gentlemen.
-- -- --
Filter by section