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Heritage Capital President Paul Schatz on how investors should adjust their strategies for the market’s outlook in the year ahead.
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I miss -- is telling us all kinds of excitement surrounding the stock market after all the major indexes.
Begin the week at a five year -- is the Dow poised to strike an all time high anytime seen.
And when it does -- dive in Iran for the exit let's have Paul -- president of heritage capital I probably think.
I learned good afternoon after.
Well I think that's the 2013.
Is gonna be a front loaded year meeting we're gonna see.
The biggest gains are gonna come earlier in the year and I'm I'm I'm much more cost for the first time in awhile frankly.
As the year wears on I think it's it's certainly risk on now what I -- continue up every single day hat ink -- in with green closes but.
For a while the trend should be higher.
I think pullbacks are certainly buying opportunities.
But as we get certainly -- all time -- think we're gonna get deathly an all time high finally ended down the S&P we've already been there in the -- -- right and the mid caps in the trainees.
But I think if we start tacking -- this -- all time high we got 3500 points I'm looking to exit not add to positions.
-- see you -- 100%.
Invested in equities as recently as last November.
So what changed and how are you adjusting your investment strategy now.
Well for us is pretty unusual that we've done almost nothing all year the year's history we sold them we've really done nothing we we've kind of stuck with.
What we put on in November.
So he added to it so we are full bore on -- you've been that way since -- November.
And were full bore on an in high yield bonds which is frankly a little scary because now everyone's thinking a high yield -- He's a good corporate behind corporate bonds -- treasury bond -- well it isn't it funny that 56%.
If even that.
It's where was back in 2007 on the on the look so high -- -- from -- fires it percent to 20%.
During the disaster in in late -- early on nine.
On this story that folks or who were were in the beginning stages of the individual investor complacency.
There were articles over the weekend last week I seen -- interviews where the individual investors finally starting to.
Adopting an agreed UN and applaud this rally or up over a 120%.
Since -- march -- -- Legal -- -- capitulation and look at the bond selloff today -- the matter fact.
So I think -- to separate the treasury bonds from the corporate bond side.
To me treasuries it certainly.
Oh a first half second half story I don't I think treasuries are gonna be one of -- the investments to be -- second half of 2013.
Corporate bonds.
For twelve years we've heard about.
That the bull market in bonds get -- end.
The wait is the greatest wealth decimation ever begins which I do think happens but it happens on the other side of the next recession pollen a little -- title awarded a contact nursing a strategizing around them and your biggest holdings have been Biotech and leisure discretionary -- you're sticking with those.
We are I think the risk on sectors are gonna reward you well early in the year.
The second half of the year may be the second this the seven months that closed here.
We do -- 180 or I'll look at things like Staples and utilities and some healthcare right now.
I think we're full risk on that the area that concerns me which is -- contrast for -- it -- remains technology.
Best case I think it's a market performer.
Worst case is it probably under performs a little bit.
When I -- -- apple in particular that such a headliner had such a noticeable breakdown last couple weeks.
Well so where we bring to bear apple bird it's it's about a year little -- year.
So around the six point 5650 mark on the way up I got really worried about apple.
Listen we're down 33%.
Roughly so.
If you think he asked me where the next movies coming apple apples and at some point it's gonna bounce fifty to a hundred bucks easy.
Great but I can't get -- selling opportunity it's not a buying opportunity my ultimate target what -- is 650 our target with sub 400 minimum.
I think ultimately apple trend trade between 215400.
Where the ultimate bottom will be hey we appreciate it detail Paul Schatz thank you so much for now says.
Thanks like -- care you --
