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He's gonna happen OK -- Kim let us take the worst case scenario if we can please the worst case scenario they're not being any deal.
If in fact we get those lows that -- was just telling us about the market is still still your best place in town I mean -- it as you put -- it's the best house in a bad neighborhood of all the kind of -- -- you can -- which -- like a -- -- in that in that bad -- if that's the best house.
What -- do I go -- what sector looks best if the worst happens.
Well we I have to first tell you that we are longer term manager so we're looking -- for value today.
That we might harvest anywhere from three to five years in the future so that being sad.
I think I'd look at two big areas client would be.
Industrials we still like industrials and that really is a growth.
Story for the emerging markets and that's why we're buying them and by the way you use your specific -- that in that Boeing is a stock that you particularly gifted in the industrial strength.
Yes we DO and they again that that's.
You know they -- -- of the developed world that it's the developing world that we think that they have huge amounts of traction in.
And that and investors should be able to benefit from those sales.
And another area is technology and it's an area that I love I understand it I was the software engineer.
So I think I have some special insight into that the technology really is an area of it gives companies productivity.
You you know you have to make people more productive not by him yelling at them or and sending them that's important.
But the tools they really make you productive art technology base now and -- -- like we're.
It has -- -- federal get a five year you go long term.
For spdr fund would you go for a four sort of basket of goods in technology or.
I know you like Intel would you rather by a specific -- like Intel it's been beaten down recently.
Depends on your level of risk if you're probably a less risk adverse investor and don't want to do a whole lot of -- market I think ETFs are the way to go.
And that that spider would probably be a good way to play it.
That being said.
If you want to do more homework and you had some insight.
Into where you think companies spend money that's where we try to put all of our technology -- -- on the business side.
You know we would buy something like -- hand -- and do individual stocks in that area mark I want every.
You back in here because something that I've been hearing a lot about as we get closer and closer to this clip -- fiscal cliff phases talk -- the is that something that traders are talking about once again -- at headline as a risk that you're taking into account for the end of the year.
And certainly as we're going in its when he heard -- I you know I don't think the recession issue is such a big deal on the trading -- certainly not hearing guys bet you're talking about it.
Because guess -- trading at a relatively low multiple well I think the big talk this is -- near term uncertainty.
Is really the only target in what we think is gonna be a relatively slow 2013.
I if you looked at kind of the last 45 years volatility I think is very cyclical.
It moves in 45 -- cycles were coming out of a very very volatile period.
The next real period of volatility is -- -- be it and this'll be a -- wanna watch is separate banks.
Trying to ease off the -- all all this money printing and I don't see foresee that happening this next here take an excellent -- -- About a second -- mark I just wanna -- timid because she has a very agency perspective can you believe that.
Going off the fiscal cliff has already been kind of baked into the market itself.
But you don't necessarily think that it's gonna cause a recession what happens if -- -- what happens if we have a recession.
That hasn't been I don't see recession like figures baked into this market do you.
Now I down -- -- I think a -- trip over the cliff I don't know what the right metaphor is fair but if these longer -- you look at live via a long follow over the -- -- let's say that's the march April time period that we don't get any resolution.
And that there's no deal done by then then we can see you know programs actually being shut down.
On the defense contract inside and you know other government services not being paid for that I can see.
And of course you know much much higher taxes soaking up.
The revenue are from you know the productive sector of the economy so yes I mean that I that is a big.
I'm thing that this is all gamesmanship about going over the cliff.
Both sides get to say they win if they go over the cliff oddly enough and that that's where we're -- -- very quickly when asked both of you marking chemists -- you can battle when do we get back to fundamentals obviously top line growth -- what we wanna focus on and get bottom line obviously for investors when you're gonna get back to fundamentals what month what quarter and 2013.
Well I think it's gonna be this next -- -- you know and a couple lived back.
That week here in January its earnings season again we're gonna get a picture into what companies are seeing.
It's almost irrelevant what happened in the fourth quarter we really wanna pay attention to -- what they're seeing from their customers looking into the future and mark.
Very quickly what do you looking for a -- thirteen.
Yes I think we'll get -- half their land not.
When we figure out this -- situation.
Look at the other half there.
When the Fed lays off the -- because.
That's the other real peace that's driving up this market.
Beyond job market fundamental -- a -- -- gonna lay out the penalty for another year according to what Bernanke and son act again if I understood you want everything hey Kim thank you very much worker what is your view was the S&P futures closed just a couple of minutes right back here.