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Glenmede Director of Investment Strategy Jason Pride on Dow pulling back from multi-year high.
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Taking a breather today but it's -- -- new multi year high in denying that the -- seventeen trading sessions so with the momentum.
Apparently moving higher is there's still room to get in -- joining us now Jason pride director of investment strategy at planned meeting.
Jason thanks for joining us it feels like the markets right now what kind of reach that ceiling is having a hard time moving higher.
We -- -- across the line we come back down waiting for the next catalyst.
Where do you see the market going from here what kind of correction of all these other analysts who are predicting a correction not correct.
What do you think 58%.
Correction perhaps.
But you know there's always a possibility for correction particularly -- you had.
Had such a strong run at the end of the year here on a relief rally following us is basically not going over the fiscal -- But we have to kind of step back and and -- a little bit of caution.
Reality is we are still in a deleveraging environment.
Many of the plans have yet to be put in place we're definitely making progress the market should generally be moving higher.
But moving too fast.
Too far on -- near term basis cannot can cause some weakness in some pull back on and on that near term basis.
So yeah we've been very much a advocate -- kind of cautiously.
A constructive positioning their portfolios for for investors on the whole.
Not hiding cash and treasuries.
But not necessarily jumping up and down to buy every stock that we see so walk fits the bill when you'll cautiously optimistic -- morning to -- hedge your bets just a little bit.
But so what this means is.
Is we're trying to take selective -- were taking risks we want -- to take risks it's not not hide under the covers and and and just own cash.
-- but taking selective risks means.
You know you're not just taking blind equity risk that means buying some credit risk.
High yield bonds bank loans international emerging market debt is all three of those are.
Attractive opportunities right now -- a long term basis.
And within equities following your protection they're actually be more defensive in your equities as a counter balance to your risk taking in fixed income.
Those are two approaches -- high quality equities than -- sluggish growth environment.
Are likely to still deliver respectable returns but will probably have somewhere around point to 30% less risk than traditional equity investment.
-- like Philip Morris to is that based more on its potential for overseas sales.
Well yes of these things have multiple themes wrapped into them -- mores that fits that bill -- high quality dividend paying dividend growing company.
So definitely fits our -- before.
It also fits -- a thesis surrounding the growth of the emerging market consumer.
Much of their sales -- to the emerging markets the growth there as consumers make more money reality is they will spend more money.
And dad you know good to have its go along with the bad habits -- -- smoking and one of them is that.
Once people make more money they tend to have a propensity to smoke a couple extra cigarettes -- -- obviously being a big beneficiary of.
Call us we'll look last week equity funds -- an inflow.
Of about seventy billion dollars and according to the latest numbers about 40% of that money.
Went into international and global funds -- think that's a good move.
We do think it's -- good -- international valuations weather in the developed markets.
Or in the emerging markets are relatively undervalued compared to the US.
You know.
And Europe in the emerging markets really there isn't too much of a good reason there are other -- That's kind of where they've historically been my -- both of those cases -- -- provides opportunities for improvement and -- to use for valuation expansion.
Cautiously optimistic all right Jason pride director of investment strategy -- Jason thanks so much that.
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