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Glenmede Director of Investment Strategy Jason Pride and Wells Fargo Advisors Managing Director Bryan Piskorowski on the fiscal cliff’s impact on th...
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In the meantime -- to go to our market panel with not.
Fried let me director of investment strategy along with Brian -- or asking Wells Fargo advisors managing director.
You -- I don't know if you just turn against us that say.
It's a fiscal cliff.
That's it that is the one thing that matters first of all Brian do you agree and if so the ways to invest around it over it through it.
Sharp partly some you know I think it -- the preeminent issued market have been -- -- now when you read.
Keeping with fiscal cliff is the fact that there -- so many different variables that would really hard to come it's exactly what's gonna happen I think markets are struggling with that.
That said though I am I am impressed too by the fact we've got an SP up north of 12% here.
Which they all this uncertainty moving ahead for playing it for -- -- I think there's a few ways one.
If you know if we do have some volatility we expect there should be some volatility leading in the next couple weeks he should have a -- -- you should have -- shopping list ready for yourself.
I'm you know from our perspective your Wells Fargo we're looking at 2013 and seeing -- economic improvement both here and abroad.
And as such we're looking it's cyclical assets so should we get a pullback should we see some volatility in the marketplace who wanted to explain that pullback by looking and there is on the equities side like materials consumer discretionary -- -- little -- -- today.
I'm looking info technology perhaps as well.
And then also playing the other side which basically -- was that not feeling that sirens call.
Want to buy long duration government bonds for safety because that's where investors are gonna go for that liquidity should we have issues with fiscal -- but we don't think that's a good long term position in place.
But -- JC got to face it there -- a lot of folks out there who were literally paralyzed.
With fear their fear but.
About the fiscal cliff about what's gonna happen in Europe about the future whether -- taxes are gonna go -- -- not.
The problem -- is that if you're holding on your cash because your paralyzed with fear -- losing money.
Eight is that can you get that message out and is there -- way.
To address the people who are so fearful don't -- risk a lot of their body.
But who recognize -- just to leave -- standing is is not helping him at all.
David I appreciate your question because this is really didn't do hardly question a lot of people are getting so focused on the fiscal -- that the not.
And they're missing the big picture the big pictures that we're deleveraging one way or the other.
And when you think about things in kind of three frameworks either super good growth.
Kind of -- growth dealing with fiscal deleveraging in a small amounts and the downside of fiscal -- the first category is not and not something that we can really -- The other ensure the more likely categories and there's a -- to invest.
In those areas and and defend your portfolio also getting returns and others have where you have a summit on the upside I'd like that were -- -- -- defender portfolio.
You need to give away some of the -- distant -- that means don't buy the riskiest securities out there.
It also does not mean hide.
The majority your portfolio in the most protective cash and treasuries.
It means find things there in the middle -- that risk spectrum.
High yield bonds take credit risk global bonds emerging market debt.
Invest in quality equities dividend paying growth companies invest and they secured options -- you're covered call strategy.
Do anything you get a kind of give away some of that more distant outside return because it's less likely to occur in this environment no matter what happens -- the fiscal -- And intentionally give away some of that protection of cash and treasuries.
Because when you're owning -- protection too much in your portfolio you're guaranteeing pretty much for that portion of your portfolio the you're gonna underperform inflation and therefore lose -- purchasing.
How by the way we want to mention one equity in particular at the top of the list there -- that was Philip Morris Brian let me go to you you're looking for pullbacks in -- market for opportunities.
Within the pullbacks.
You've you gotta look at apple if you're talking about -- -- as one of the biggest pull backs we've seen ever in this stock is now the time you're going to get apple.
I think you know -- big picture here we we do like the info -- -- we think is gonna be a driver -- the not only take the growth approach.
But you also look in the info tech space there's a lot of companies playing on Jason's -- over you know I got I got -- -- -- and I play for second year because I know you don't pick individual stocks but.
You gotta look at that when you look at apple it's almost an index in and of itself -- when you look at the market -- even now.
The market cap makes it an index we just if you if you're not gonna record -- it wonder where the other just talk about the phenomena of it and what it indicates for the rest of the tech sector.
Well apple has its own animal I think that the thing is that everybody's so consumed with his name because it does have a big driver and obviously cool products.
But bigger picture here though is the fact that.
You know all of that is that is not -- even given the fact it is 4% of the S&P and I think that's what where the missing stories there's a lot of value -- in info -- beyond apple and that you know that could be part of a diversified portfolio but bigger picture I think -- some of these small dividend growers in the S&P that -- back.
That are maybe some what you just when you -- Stock screener Brian and look for this you know market caps of fifteen of 5500 million to a billion and then decent dividend.
Liz I think you wanna look at you wanna look at names that are yielding that you know one and a half to 2% didn't grow that dividend to have strong free cash flow.
And obviously solid balance -- with a lot of these -- generally because they're not generally that leverage so.
In that the thing about fiscal cliff guy that I think we need to focus on as well that was from our perspective here Wells Fargo.
We don't believe that this is gonna be a game -- that the golden -- of growth is going to be killed or as a result of what happens the next two weeks and I think you need to take a look the fact that China is looking better now.
Things are less bad in Europe.
And as such this global growth story not only here but looking abroad maybe potentially down the road started to get a little more aggressive on emerging markets who -- get through this these -- areas that are also opportunities beyond just what we're seeing here inside the United States -- -- great stuff thanks to both of you have a wonderful weekend that is the word from -- and let me -- good to see it after.
