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ING U.S. Chief Market Strategist Douglas Cote on how investors should plan their strategies for the year ahead.
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Well for the first time in three years the S&P side negative profit growth in the third quarter so what are the poor earnings mean for your portfolio joining me now on the Fox Business exclusive is -- let's say AG US chief market strategist and Doug.
Good to see you -- actually looking at the -- here of the RI NG global perspectives and a big.
The title of this paper says that all good economy.
Challenged.
Markets how badly challenge.
Well.
And -- you -- and the opening.
We've had a three year bull market.
Bolstered by also three years have been advancing corporate earnings this time it is different we had our first negative print in corporate earnings.
That is not good it's assigned to be defensive.
And taken that -- look what's happening in Europe Europe industrial production came out today.
Negative 4% the worst since 2009.
There already in -- -- with that economic backdrop.
What did we do we -- -- anti growth package with taxes we raise taxes not just for the rich for everybody.
And I don't think that bodes well for our continuing growth and that's why -- defense.
One of the things that you talk about here don't wanna cut pick apart this point if you don't mind is that you know you're saying that.
Which really looking at going for high yield and global bonds and a fair enough but if you've got -- US economy which is still the biggest economy in the world if you've got a weak economy.
Unfortunately.
And -- you're saying good economy -- severstal ramble -- economy 2013 that if that's the case -- -- I wanna be high yield.
That make sense to yet.
Yeah it does because high yield you get paid a lot of -- ways you get a very high income.
On and risk adjusted return last year with top over 15% almost as much as equities.
But he still getting paid to take their -- to be in there.
Global bonds is a win win win yet -- that the pain and yield to get paid on offer diversification you get paid on currency risk.
I sell that's a good place to be.
And I'm not saying -- wearing Armageddon.
On the equity side I do like mid caps.
But what I think you need to be is make sure.
It just trend -- -- on equities and I and I I don't biggest in the world the good economy part.
Is the consumer we like the consumer because the Fed with the quantitative easing is bolstering the consumer.
Through housing.
And and that's why I think for the consumers for main street is going to feel good.
But for investors for our portfolio manager is I think it's going to be a challenge in the market.
OK and -- -- talking about at mid cap but also.
You're talking about.
Global rates and I think that's a very interesting strategy it is certainly something we don't hear much about.
US based -- certainly have done fairly well to limit the housing recovery but also on the on you know but the growth of the aging population in this country what Connecticut fell out of a global read that I can't get out of -- US -- street.
Global reits were up 29%.
In 2012.
This was a spot this is what as you said nobody has been looking -- and we've had in our portfolio well.
Really won't reward reads I like in general because again paid a real good Castro real good yield -- -- -- capital appreciation.
In the US reits were up about 20%.
Nothing to -- this means that.
But I like the global diversification I like abroad.
My -- -- the markets and I think you're going to have to look.
Beyond just the US although global reach US is a big part of.
You mention one of my favorite topics your paper front tier markets good rain Doug Coates AI NG US chief market strategist thanks Doug.
