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Gary Goldberg Financial Services President Oliver Pursche on the fiscal cliff talks and their impact on investors’ portfolios.
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My next guest does not -- of fiscal cliff deal until late January but the possible market turmoil to -- it could create a stock buying.
Opera days timing announce all reports anchored over financial services president and portfolio manager of course you're gonna see the -- couple on this one.
But the fact it you're looking at late January even saying this since November didn't fare on the show yeah.
We've been taken that position that we don't think that politicians are really gonna get anything done until their backs are firmly against -- wall.
And that's going to be after the first -- cycle of the new year.
So that's why we're expecting third week of January but this is also an opportunity for investors we have to recognize that and if you look at the markets today.
Just imagine if you'd asked if you poll twenty investment professionals yesterday -- prior would have nineteen out of us -- said.
Markets -- -- -- going to be down today and the market wants to go higher on account of the battered and expect the current economic news.
It's trying to -- at the same time I mean there's a lot of I mean one of the best performing sectors of 2012 was financials -- would have made it predicted that at the beginning of 2012.
It's isn't it hot -- -- able to kind of focus on what sectors to to look at for 2013.
When you've got this cloud of -- uncertainty -- hanging -- Gregarious but I think if you take a little bit of a step back and you look at what's occurring in the world and you're seeing better economic news you wanna focus on companies -- have strong balance sheets.
You ought to focus on companies that have -- an average growth rates and predictable growth rates.
And you wanna focus on companies whenever possible to pay a strong dividend because that's a major component of your overall return.
Dividend though you know that that's a controversial.
New position -- that get the most -- should stay with dividend -- with seniors love those -- at the same time this could be.
Smacked his nektar well they they could possible -- could shirt.
We sell off on account of the tax worries however you have to understand it as long as the Fed and central banks around the world we're gonna keep interest rates near zero.
Dividend paying stocks going to be very attractive for anybody looking for cash flow.
Especially compared to bonds.
And let's face it there's few out there who are thinking that the bond -- is gonna continue much longer than -- has.
Not a fact if you talk to our -- -- -- financial services we turned bearish on bonds a year ago.
Right when you -- -- to say that you know what -- -- -- -- the sectors -- -- knowledge talked about recently had this year who has been the consumer.
Sector at the same time -- sick -- it had for December we got that number last week.
-- lot of issues that are onetime issues the storm and the shooting into some horrible things that happened in this country the collapse but.
If and we've got the debt -- the debt ceiling debate coming up so they're certainly pressures and you don't want to ignore those.
But ask yourself this -- again taking a little bit of a step back.
Would you rather on -- speculate as to stock that's gonna be -- Yo-Yo.
Yeah or would you prefer owning something that you feel very comfortable in over the next three to five years and that's what investing is about the next three to five years not the next month or next week.
Asking if a -- and about Pulte and Lennar the beginning of the year yes I think I DUS seven about the psychic.
But really -- we actually some socks that you do like an independent than beverage category like PepsiCo do you like -- course.
PepsiCo though without a leadership change a lot analysts have been frankly negative on the -- only gained about what.
Two percentage well and that's one of the things that we like about it because it's gained a lot less -- it's grown in terms of revenues earnings and continues to have a strong balance sheet and -- good dividend.
So that to us is very attractive because you want to look for that type of dislodging.
When a company is growing faster in terms of revenues and earnings and its stock prices appreciating.
That tends to be favorable -- -- before us stock buyers when a company stock price has appreciated much faster than its earnings than tends to get a little bit overpriced well Molson crawls down 2% over the last year you would think that barely hang honestly thought that about the us.
All of a -- happy new year happy new year always -- see -- just another great year to have you on as a guest on the show thank you so much Yukio.
