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Bell Rock Capital CIO Cassandra Toroian on how Federal Reserve policy and fiscal cliff concerns impact investors’ portfolios.
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Lackluster retail sales and follow through from the Fed announcement yesterday that it's turning on the speak it's beginning next month has -- the market read.
And leaving me wondering if high net worth investors the so called Smart money might be changing their investment strategy.
We help brand because Victoria her clients all -- millions of dollars their high network folks that want to see this money grow.
She's the bell rock foundered CIO joining us in a Fox Business exclusive.
You -- -- the very measure person that's what you have a lot of really wealthy clients because you must do well for them after the Fed's announcement yesterday that it would once again.
Kick in to a bond buying program that equaled about 85 billion dollars every single month -- changing the way you're investing for these people at all in any way shape or form.
Not at all not at -- -- because.
Look this was a double edged sword I expected to see the market really pop a lot yesterday after.
And it didn't and what that tells me is they're expecting us to go off the cliff.
That's why they made this proactive announcement clearing -- we're gonna keep interest rates low for a very long time we -- he knew they were continuing these programs.
So it made me wonder what what am -- gonna change from my clients nothing I'm expecting.
Basically -- zero rate environment for a long long time.
Okay that actually knows so what about the fiscal cliff and whether you're gaming the fact that it might go over are -- changing investments in that regard for your your kind of worth clients.
Don't we're not changing that either because.
I think that it's baked in already some -- most certain for them for the large extent.
But even if it does go over I really don't think it's a big deal.
Casino Brett young in my view that's why are missing its victim went on a day like this we were up.
John Boehner.
Comes out and speaks and we fall just look at an intra day of -- one -- the major indices and that's exactly what you see.
Look at the big board there's up punch a green right at the open and we were fine until he started talking about the fact that we may not get a deal that there is.
-- -- -- -- -- there was a little punch -- -- at the beginning but I really think what's overshadowing this.
Is that said saying that they're going to stay in this game until we have a much lower unemployment rate that tells me they're expecting a recession which we're expecting anyway if we go over the cliff.
OK that said.
Where you putting your client's money right now we'll get into specific names later -- in the broader sense the last time you were here you were saying stay away from things like.
Overseas markets do you still feel that way yes we still feel very much to stay away from overseas keep mostly domestic.
Financials we think -- gonna have a good new year next year -- and well it's a good environment for them because we know where rates are gonna be they've got decent spreads.
All because you know they're paying nothing for deposit -- net interest margins are really not that excited at this moment for the financial snow but they're continuing to get credit quality improvement.
And that they're really sitting in a sweet spot right now I think and that's going to be that's going to be for the next year -- so.
So you say state domestic you like the financials what about anything where what it might be a play on what we've seen some better housing data I'm not saying by the home builders but -- those derivative plays.
Maybe some of the earth movers -- construction materials companies clearly there's going to be just based on what happened here in the northeast.
Some some I think nice upside and in peripheral names like Blake home depots and things like that but.
I I think that there are other.
Interest in places to find higher growth.
And she's gonna name three names that you could buy tomorrow if you want -- -- today because we've got 52 minutes left before the closing bell rings Cassandra back to talk about that but.
