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James Advantage Funds President Barry James argues that volatility index is flawed and how you can invest around risk.
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Market indicators that you may not consider so what is on his radar Barry James James investment research and -- advantage fund's president.
Joins me now to fox -- explicit.
And you say that the banks which we all watched volatility index used saying that it is flawed.
If we're not -- the vex what are you watching football.
We think that there's a much broader way to look at risk than just a -- the -- isn't bad and of itself.
But it tends to get to extremes and then stay there and not really give you a signal and right now it's it's it's pretty passive it's not really giving you much information.
People are are kind of well global -- sleeping better at night right up close so what else it would be watching immediately so my wealth of important things monetary policy -- when we have quantitative easing the last several times that market goes up.
So that's a positive -- we looked at sentiment other sentiment readings.
From double a double life.
To you -- to put sources calls the premiums on those sort of things they're starting to show a little bit more optimism than they had shown.
So that's a little bit were some and then -- course looking at the economy itself.
We see some positive signs -- see some negative signs are kind of a mixed bag right now does not really giving us a lot.
We try to put all of this and a package we have -- -- -- hundred indicators that we look at the try to measure risk levels.
And they're saying it had been a lot less risk at the end of the year and risk is starting to creep up but not anywhere we need to sell -- Earlier -- even makings mention in -- actually moving away from bonds.
And many of many people half.
But moving more in equities -- that risk on trade if you will for 2013.
You're ready to take that chance we baby under 100 indicators.
Right right.
What we see there is it kind of twofold risk lower and stocks -- gonna make more money in stocks usually so -- weather moved there but there are higher risk in bonds -- not.
Out of the woods you know in terms of both the bond market maybe even going lower -- that's not a negative to positive.
We couldn't get go lower but we are in a period of time right now.
Where rates are heading a bit higher can't we make that -- Well and you still got I mean you're you're you're stocking your bond at this point -- ratios still unfairly on track there ask you about says you know.
One of the socks that you like you talk about -- Lockheed Martin.
Trying to bring this up because of all the talk about sequestration -- defense cuts heading this year and we don't still don't know what's gonna have only got six weeks to figure it out.
Lockheed Martin is a stock that many ran away from and the debt to the election different away from Lockheed Martin -- Texas watch.
Well that's part of the reason.
We tend to go against the crap that at three basics it will focus on the cheap that has good earnings.
And the stock has up a record of going up the stock price -- got those three and Lockheed have all three of those they have a good dividend yield and they've been buying back their own shares.
At a very they have those lines of businesses that can protect them from the fact they've got two -- that well one more now -- the already winding down talk about two patrols ending completely.
No American personnel Afghans in the -- that doesn't bother you.
Well why it it's always a concern lived cutbacks in defense will have some impact on them but they do have a broad.
-- -- and they're not just stood defense related to get your.
On for underdogs obviously your picks could you also like you also like Intel right of the worst performers in the -- for 2012.
As the PC not that I -- because of the assumption that it was.
No it's not just not there even talk them it's rumored that they're talking -- apple to make some type of a watch a Smart watchers something.
Can be using mirrors and there are a lot of sales and I think we've been seeing.
Even chip sales have been rise in the last summer's over coming out so I think it's too soon to call and tell dead and you get a good dividend yield.
You think they're gonna be going more in a mobile as a business find a time I mean they're -- -- outlook -- because they realize that the PC.
May indeed maintained -- OK I do wanna get your number one moneymaker right guys kind of teased this earlier on the show it's an automaker.
Right dad doesn't sound too glamorous.
But Ford is back like sort of pet Florida they came out today and announce that they're they're doubling their dividend movie which I didn't know about when I gave you the -- That.
I test of that fact -- picking -- before a panel of the dividend Hezbollah has.
But people have the average cars on the road for eleven years now the affordability has big -- to become much more affordable.
For the average person out there.
And you're seeing car sales rising so all of these things fitting together with consumers aren't as debt burden as they work they want something they -- new car.
And that's good for four.
Alan Mulally has done a phenomenal job -- -- minister well thank you very much very James thanks for having on the showed it having heard James investment research and James advantage fund's president.
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