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That it doesn't come let's bring in our panel for the markets Alan lapse of market -- alright of Alan let me begin with you.
-- pretty bearish but to say are bearish I think is unfair to our viewers because the markets are such a huge living breathing animal.
You bearish emerging markets you bearish US so where are you most concerned and what do you like out there that doesn't scare you.
But we like income -- we were buying into the weaknesses people worried that the dividend.
Tax rates would would go up dramatically in 2013.
So we -- a lot of master limited partnerships.
We are really bearish what we'd recommend is just as the market moves up take some money off the table take some risk off the table.
Or we -- the last three years is.
If you bought when the S&P is under its 200 day moving average your average -- the last three years is 45 point 3%.
Yeah -- -- bought when it was over the 200 day moving average your average gain is one half percent -- so I still think it's going to be about the fourth market you should buy into weakness and take some profits and -- the euphoria.
Market and we have a tendency here in the states to be so parochial just thinking about what's happening here inside the beltway -- It's a global market and in fact is becoming more of a global market.
You see global trade -- really taking off in 2013.
And that leads to is some tremendous opportunities if it happens right.
I think -- -- I mean if you look outside the US valuations are compelling whether it be Europe whether it be China -- select emerging markets and even in Japan.
And as catalysts under way to unlock those valuations that I think.
As investors come around to realizing that those risks are receding -- gonna see a compression in the equity risk premium allow valuations to expand.
And -- are actually just -- -- let me just challenge you on one of those countries Japan because some people are saying that look this new leader.
Is is going one day in exactly opposite direction of the free market he's he's putting controls -- the Central Bank that they didn't have before does that concern you would all the Japan.
May be going in the wrong direction.
Quite the opposite tact group Vincenzo bay is the catalyst for unlocking the value that's been in the Nikkei.
Market -- years now I mean there's been many false dawns and Japanese equities.
There perennially cheap and unfortunately we've never found the trigger point 20 I'm unlock some of the valuations.
That persist and exceedingly low levels when compared to.
Other markets in the world so actually the pressure he's putting on the Bank of Japan to intervene on the yen.
And weaken it is good for Japanese multinationals.
So we've encouraged investors to step into the Japanese equity market.
In hedged position given the fact that the dollars expected to strengthen an already.
Has vis a vis the yen to take advantage of again valuation expansion in the -- -- And there was that that big argument today Matt Allen where you had.
One side of the government saying stop weakening this yen and suddenly the yen's strength of the dollar plummeted.
What's the trade here in the US is there an opportunity that you see.
But I think it is that that is a pretty well worn out trade I mean we're hearing a lot as far as the that the play with the yen and what have you so.
You know I I be wary when everybody's on one side and -- -- -- -- -- let's just say the dollar's weaker do you then like big multinationals based in the US whose products and become more attractive if the dollar's weaker.
Yeah I mean that that's one way to play -- -- but a lot of those companies are ready -- cardinal from a valuation standpoint and you know just like you know now pull off you know there's there's risk when there's high expectations and I.
I think you know some of those companies you know or not if you're gonna play that -- I would do with.
Maybe some technology companies that have -- leading edge that -- you know 41 half percent dividend -- this way you get good valuation.
You don't have those high expectations.
And you get a good income component while you're waiting.
One of those companies by -- -- Cypress Semiconductor market let me go to your picks.
And start with a company of 400 talked about the year your interest in what's happening overseas one that most people don't -- how the French energy company why do you like.
What I think it gets treated unfairly because it -- to have its flag planted in France.
But its valuation is actually very reasonable especially when compared to its US.
And other UK based peers.
But in addition -- that were constructive on the energy space in general because we think on the back of continued global growth.
That ought to be supportive of high if not even elevated energy prices.
And that ought to be good for a major oil integrated company that again is selling for cheap valuation with the well above market dividend yield.
OK and then Zurich insurance group I've been if if you've got a US based investor who's looking at this one what's the number one selling point there.
Again high quality Swiss based financial sector.
Holding that we like but in terms of its insurance.
Related assets but in addition -- that and importantly in complementary to that hotel position.
Is it's well above market dividend yield.
No comments in an insatiable appetite for -- and a mark Belushi need good to see -- both guys thank you very much for Erickson appreciate it faculty based.
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