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Street One Financial President Scott Freeze on how investors can gain from a potential lack of a fiscal cliff deal.
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What are the telltale signs that show us.
What the 2013 economy and maybe the markets look like signals that tip -- support money people out there is it say.
The Mayan apocalypse.
-- Jennifer Aniston's baby bump I mean that's definitely -- again.
Or -- Europe a new tax laws here in the US.
Guests right Scott -- history one financial president you've got the answer in the -- this is exclusive.
I feel -- Smart people were scared about the Mayan calendar tomorrow afternoon -- no.
-- All right you've got 550 billion in assets under management I wanna hear what your brain is thinking about 2013 as far as investing is concerned.
And how it pertains to what the economy might do.
Well first of all.
There will be no fiscal cliff you know we're going over the cliff it's the best thing -- -- of force and people.
Have to remember even if they do get a last minute deal it's gonna look like -- over the cliffs and that's what people should be prepare for so first quarter next year.
Probably a tough road to ho -- see the market correct maybe another 910%.
Unemployment will still be stagnant won't search turnaround colors -- outlast I think -- for three or four months kind of we're not looking at it's an extended period of time it's just.
Companies need to figure out what's going on.
How -- gonna handle the tax situation what's my tax -- going to be how my handling obamacare how -- doing this once they have a couple months of -- -- environment to deal with.
Then they can start to position themselves -- for the future and like anything else becomes cyclical we've gone through a really bad depression -- -- reverend call it.
But yeah we are certainly come out you might have a slate double dip but it's really something that's been in my opinion.
Overemphasized a -- as an investor you say.
Watch out for an 8910%.
Drop right around the beginning very short term you're getting 23 took -- so would you.
Not cash out right now what would do -- I -- tonight I think it that you go into the value names.
Because the value knees are gonna locally growth stocks and then towards -- second quarter.
The -- -- -- in the third quarter then get out of value means get into the growth stocks how do you define rebellion.
Well as we discussed before old school technology is one of my fair plays -- now.
Denying these themes as opposed to the -- -- technologies your order -- -- Microsoft Syrian tells -- They've been doing very well I think that they'll continue to outperform because in the.
Outperform Intel was outperforming and you know the first part of the year end and that fell off true but it Microsoft and Microsoft I'm not excited I I don't mean I don't really warm gold definitely.
Not exciting but if the market drops and they and their flat it's almost like you're making up -- 8%.
If you had if you stay flat when the market -- -- percent in my book Europe 8% that's a win because you're not losing with everybody else -- spent sparked.
Now what else do you plan to me what -- about -- high yield for that for the first quarter high yield like they each -- the that we talked about before each -- -- That -- implications can't just buy 3M -- Yemen say -- -- -- yield play I just for the dividends.
Yet to go into more higher yielding instruments -- -- after the effective tax rates are still getting the same okay.
But when you consider that spreads relative to treasuries have narrowed they have they have definitely -- -- is this a trade that's been picked over too much.
I think it has but I think we're -- were talking for the next three or four months it's not some and it's gonna Molly your portfolio and for the next two years.
You know you you have to drink it's a trade it's something that unity for the next three or four months just to be stable to get the returns that -- used to and then.
Investors need to be like these corporations yes everything's gonna shake out make sure that you look at everything okay I understand the tax consequences I understand what we're looking at.
Now I can start to plan ahead and then by may or June this is going to be that turnaround where you're gonna be starting to get out of those products and back -- the growth.
What did you what do you say to friends who say.
I'm just scared -- going into treasuries.
I just laugh at -- that's a guy -- really don't have any friends that -- actually -- I think you're not my friend who I listen -- -- of that ilk as well thank you so much thank god happy happy holiday you to take good to see you Scott freeze he is street one financial president closing bell.
