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Ameriprise Financial Chief Market Strategist David Joy on how investors should position their portfolios for the year ahead.
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-- in Washington right now.
Well the markets having a tough time deciding are waiting for a deal to happen in the next few -- that -- -- surprisingly.
Well optimistic right now will this continue into 2013 -- -- he's chief market strategist at -- -- financial.
And David I want that kind of fast forward pass a fiscal cliff because we know -- is some way shape or form this is going to.
Happen but also guaranteed to happen -- is a lower growth environment given that.
I just -- mean attract is -- when he thirteen.
Well I think they do maybe a low growth environment but that will come about as a result of the federal government.
Beginning in deleveraging process something that it has been well under way in the private sector for a long time.
And as a result I think the outlook for equities this year is very good my year end target on the S&P is 1550.
I just think we need to get beyond all of this uncertainty with Washington and in the private sector can go about doing its business and and I think -- outlook is good.
I think a lot of -- so looking forward -- this uncertainty but that is going that cloud is gonna remain hanging over us for sometime to come we've got debt ceilings we've got a budget to also get through over the first few months so how -- you position yourself what sectors -- stocks do you think may be able -- hold out a little bit more are in a more stable fashion.
Yeah our first I think this that the second half of the -- is going to be the stronger -- precisely because of all this uncertainty so in the short run while that's going on I think some of these defensive sectors may still.
Provide a good place to be it looks like the dividend tax rate is not going to go up -- -- rates so let's hope anyway and so -- -- they'll continue to be attractive but.
We if you look at the market today it's telling you how.
Things are likely to perform in the second half you see for example materials technology.
Industrials doing very well and I think those are going to be the real leaders in the second half of the year.
-- is a growth gonna come from David because it's not gonna happen as robustly here in the United States.
Well I think first by the US could surprise a little bit and maybe deliver about a two and a half percent growth rate a little bit better than the two consensus.
You see housing doing better.
-- -- manufacturing certainly doing better.
But the thing I'm watching overseas is what's going on in China.
Via Shanghai composite is up 15% in just the last thirty days.
Starting to see better manufacturing data better export data it looks like -- in the early stages of a cyclical upturn -- that will help.
The US but also you know other JR nations in the Pacific Graham as well as platinum are and we did it.
It -- strong PMI number out of China as well today apple finally -- wanna ask you that corporate bonds another asset classes are you and I investing in those into the new year to.
Well I -- -- I was a little bit concerned that if we would've triggered the fiscal cliff you might see a rotation away from lower quality debt.
If we avoid debt then I think.
A high yield bonds are going to be once again an attractive asset class this year.
And maybe more so than investment grade.
Certainly.
Both are more attractive than treasuries not much value there David joy chief market strategist at -- -- -- price thanks for being on with us today and -- very happy new year to you as well.
Thank you -- you.
