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Pagnato-Karp Group Managing Director Paul Pagnato and Ace Investment Strategists Chief Trader Yu-Dee Chang on the sectors that should be on investorsâ...
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It's let's bring in Clark panel that would -- but not -- and beauty Chang gentlemen great deceive all caught wanna go to you first.
We're we're gonna talk about the Fed -- -- first I want talk about the tax changes that that the congress finally decided on.
Yet you think of who's gonna hurt the least because nobody likes higher taxes nobody likes higher taxes but.
Who's gonna hurt the -- and I think of -- large cap companies.
Because of those.
-- that is one of the areas.
The large cap multi nationals have over 50% of the revenues coming from overseas so they're not gonna feel the drag that allow -- small companies we'll hear United States.
Okay but let's talk about what will feel the -- I mean if if you if you get the sense that we're gonna some real problems in the US are you.
A little frightened about certain pockets of equities and if so which wants.
So overall we're bullish.
But the area that I am concerned with all the small caps when you have a situation where personal income taxes are going up like they are.
Small caps in mid caps usually lack.
Are -- -- I'm done thinking about whether or not we have worked all the bad news into the stock market.
Clearly yesterday and and the trading day before that you got the impression that we had and that there was there were we were due for a run up however.
You look at what happened with the Fed today the Fed minutes suggesting that they're not gonna -- -- any more money.
Going into next year that is 2014.
They may stop some.
Maybe even mid -- printing money and we saw the interest rates rise as a result of that is that a concern is that one worry that hasn't been worked into the stock market.
I think sold that is something -- -- you to the market but don't forget.
Either way or should -- dollar bid down the -- and also Bernanke pretty much came on told us right.
As long as inflation stays below two and a half percent as law has -- unemployment rate stays above six to have present that's easy interest rate policy is going to be here to -- so this so called risk trade concept.
It's still there for now it might be changing like -- that -- -- livid dollar Rowe from for the time being still there I think.
There's still a lot of catch up investing that needs to be done -- where did you dilution because that's what we want you to show what's the money where is that -- investing going to go.
Not couple things I think is going to go to the lagging sectors all of the last year I think one being think about -- housing -- the housing market has revived a little bit something related to it is to durable consumer durables do you think about it they haven't.
Been doing that well last year as map back -- lag the market last year give up well they're buying off to consumers.
Durables they're going to the consumer electronics but I think as a housing starts as the housing market picks up people -- be starting getting into these appliances furniture is so I like.
That's sector consumer durables all specific.
Latest stock wise -- we're talking about Whirlpool and companies like that.
Yeah I like Whirlpool a lot I think as of major off the major appliance store of course and then also like the first church and then and -- actually accessories store.
Our leg and plot I think these two are the leaders.
In that sector.
Paul you feel that that perhaps some leadership might come in the real estate world that's a broad statement let's let's try to drill down a little bit would -- -- in the commercial area would be in residential.
Triple double family dwellings.
There is that we like.
Specifically some of the most recession resilient properties so we like student housing.
We like self storage and we like some senior living senators all the demographics are very very strong.
What what about the jobs number we got that coming out I mentioned that before -- Paul are you gonna be influence at all.
In your decision about today investing with regard to equities based on what happens that -- -- -- -- -- -- terrible number -- -- -- effective at all.
-- world -- longer term investors and know what happens with but the jobs reports not gonna impact.
And we do -- that did the jobs report this and come out tomorrow what we're not expecting any huge surprise on the outside of the downside.
Judy what is the number one mistake you believe investors have the potential to make in 2013 but that you want to warn them against.
Yeah I know I rethink based on the environment is still not a momentum investing market -- chasing the momentum.
Chasing -- high fliers chasing a stock of the market that's already gone up is going to be another mistake.
Buying low selling -- such an easy -- is yeah.
But it's very difficult to do but as -- exactly if things to me dot you gotta buy dips and sell rallies.
Right now I think we're still in the middle of a rally so I think there's a -- -- more to go but.
Throughout the history actually over the past I -- -- about 45 month I'm telling you about 13% more so upside -- ready to be sold about seven and a half percent downside is ready to remind me right now still are you still 15% in cash.
Yeah right now we are -- -- pull -- -- all -- -- good way to.
Yeah we're still waiting a little bit I -- The market by the way I think this year -- 17% for the year taking us to about 167 the far right well I don't -- I don't.
All I'm beauty if that happens at the end of the year I would assume then you'd only be about 10% in cash right ha ha ha your absolutely right.
David you're absolutely right as the market go higher I wanna take my profit as the market go lower I want to buy into it.
You know what we actually had been doing that not just saying so.
Again not easy to do so mark Klein has some hogs get all freaked out by saying that what you -- -- do glide write about over the -- yeah.
Absolutely half full -- -- sell -- what exactly does it -- -- both Paul's eye shadow and unity Chang --
