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-- -- the Dow is rallying today with the S&P in fact hitting a five year high today let's get some investment idea -- with so many.
Headwinds to the US economy that fiscal outlook in all things going on around the world.
Kevin -- Kenyan and Walsh the president there is back with us here and I know you have some investment ideas I wanna get right to it because I think there's a lot of confusion we've seen.
A lot of asset rotation especially today with interest rates moving up significantly so -- selling off -- people.
Buy equities and I know there's been a lot of talk wondering if this is.
Whether or not this is a great rotation -- starting to happen as interest rates have been so low for so long already.
I think it is -- I think if you look back at 2012 we saw a large amount of mutual fund flows going into bond funds coming out of equity funds.
Now as we get towards fair we're we have discrete that's going to -- if we go until March when we have -- two of the fiscal cliff debate.
Sequestration is a real possibility or the potential that we reached no compromise in Washington -- for -- possible and you know was watching anxiously awaiting rulings go on.
We we have the rating agencies and if the rating agencies to take actions on US treasury because the inability to watch your reach compromise you could see treasury bonds impacted and sold off and that's or start this year -- -- -- -- -- It's focused you're actually -- of the first people to come out and say you know this creep up in yields we saw a little bit of a back up last week as well.
It yields retreated -- but they're up today again is fox -- rally and you think that is directly attributable to the situation Washington and perhaps another downgrade to our US debt.
I think as we get closer and closer to those two deadlines are gonna see more and more flows coming out of bond funds and into equity funds -- into real assets like gold.
And I think until we get past those two deadlines and into the second quarter that's what the markets to return.
Going off on a tangent here but why big bond managers don't wanna call that yet we have below Donna from RB CE on earlier this so weak you know -- Abbas and these other partridge they don't ability get paid want to mention bond vigilantes went up because.
Credit rating agency.
You would certain agreed in their eternal optimists right they believe that Washington -- -- compromise has to do with around one of the fiscal -- -- relates to revenues but right now think about this we don't have to raise the debt ceiling if sukuk sequestration happened -- So what as a result of Republicans have that's a bargaining chip I think both sides have been -- her heels right now -- the rating agencies are taken watch.
I appreciate your explanation let's talk about these investments at us on -- -- markets like China and Asia and -- know in our keys with the Germany 20.
Letter of Germans really.
An emerging market both customers aren't there they'll move over -- and yes.
-- -- 2012 the 2013 2012 we were heavily al-Qaeda in the US now we're looking back overseas again.
I'm not suggesting that dark cloud over Europe is -- right now.
But I do think there are great opportunities in Northern Europe and Germany remains as the one gym in Europe in terms of their economic growth.
I -- about emerging markets because these economies in many ways are outperforming the US and a -- less than what putting some emerging market products into retirement because if you wanna.
Earn a decent you know yield at this point any got a mix it up with these emerging markets it's not the alternative investment -- -- -- -- Correct and I think the old portrait from the 2007 if we default the -- -- -- from Brazil and China can hit closer to good countries to be in right now.
And Europe and the US benefit from their growth.
So what's the US economy improves and as the Chinese economy improves you can see those countries in Northern Europe from.
It was well I know that you like the homebuilders as well I have to -- this is becoming a crowded trade because he's been looking.
And characterizing home building -- home industry in this country as.
In proofing -- slow but steady -- And I would suggest that it's not a crowded traded for the very reason that.
Inventory of unsold homes decreased by 33%.
Britain last year and now stands at just close to five months.
There's more room for the real estate recovery to improve both domestically.
And internationally so consider home builders consider reits consider internationalists I appreciate that -- month for joining us to get great -- -- my pleasure.
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