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Empyrion Wealth Management President Kimberly Foss and Wells Fargo Advisors Managing Director Bryan Piskorowski on where to invest in this market.
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Futures -- where is the real strength we bring in our market guests Kimberly thoughts and -- has aroused sea -- thanks for coming in a Bryant's first audio we've got kind of a dead -- going we've had that for.
For about a week now where the market can't get a clear indication of -- -- down individual stocks it's a different story with regard to.
Blackberry whole foods some summer rising -- -- falling but that the overall market index how much longer we're gonna see this flat com.
Well I think it depends.
You know the big picture it it's just funny I look at -- commentary coming out.
From news outlets zero and right now and you're looking at a more positive light I think that really speaks volumes -- how sentiment is changer in the market over the past twelve months.
On -- losing his individual investors open up their statements after a great -- which was 2012 decline that wall of worry.
I'm -- -- things are being looked at a little bit more in the glass is half full way perhaps.
On big picture here for us is that we as we look at 12013.
But it's -- -- be okay here from an economic growth respectable the more likely clubby black and loaded.
The individual situations are here I think our our net positive I think the fact when you have bad news on the tape and the market is either flat or higher should be -- viewed as positive.
You look at fund flow data particularly XE TF right now that is -- overtly -- positive for the plight of equities it stands right now and that we are gonna have individual situations that there's still geopolitical tensions in the Middle -- say in North Korea but the fact of the matter -- -- -- -- still have ripples coming out of sovereign debt in Europe and those are all gonna be potential areas where we see pullbacks in the marketplace and our viewpoint is 57 to five and the S&P by year -- not gonna be a straight number run from there -- here and there -- -- -- -- pullbacks.
1575 were 5021 right now -- Kimberly Brian's cup half full theory.
For you has a few problematic specks of dust -- it -- infected trifecta as he put it what worries you most but why it.
Why would you take that beyond just a blip or two to the downside and make it more of you'd better really figure out how to invest around these things.
You know I think -- -- -- seeing globally we have.
We have issues that will cause a ripple effect because we are globally diversified.
Well that we're all interconnected so the trifecta that I worry about it here -- you're -- that the sequestration.
Coming out on the first of march if the debt ceiling issue right after that an -- got the eurozone.
And -- -- just right now they're trying to figure how can we raise more capital of the sustained.
The countries in Europe.
To deter attacks any that it that's actually thrilled -- can be a big issue for train in the US and in internationally as well I think a big.
A bite out of potentially what we could have or profits that overall so those.
Those are real worries but somehow.
The US markets right now seem to push specify -- a birth does because.
Someway somehow they're gonna be averted and there's -- an answer to them and the markets can continue to -- straight act which I think is is.
A little bit of fox at the security.
On those opportunities that -- deal drop in -- market get those -- the buying opportunities I think long term very optimistic.
-- short term cautiously -- And we're gonna get your stock picks in the -- -- -- don't wanna talk about bonds first or we're talking about stocks.
A lot of folks are getting into riskier bonds because -- -- yearning for those higher yields.
But there is a lot more risk now and in that bond market does that concern you at all.
I think the -- in the bond market stems more -- just the secular change in interest rates over time you know we've kind of hit the second lowest -- 130 print on the tenure last year.
Obviously -- north of 2% now on attends.
Bigger picture is this a cycle swings.
Most average investors are not really seen rising rate environment for the better part of thirty years and so -- -- -- what we do a look at credit risk you look at corporate balance sheets that they were in good shape.
That's it we are gonna take where's the bond market where we wanna be we don't wanna be long duration -- say although it's hard to be short duration right now just you don't get a lot of -- so -- -- -- replacement strategy we actually look -- the equity market in some areas re -- what you buy and equity portfolio to have morbid dividend orientation to make up.
There's about loss yield by not being long duration in fixed income sides of portfolios but big picture here -- that we do what what were overweight equities and worse like underweight -- both.
But tell us what you love about these two was there are a common thread and it's so what is it what else is there that you really like about them.
Well I liked the fact that they're big large name companies.
And their well situated and market their large value we know -- as as we love to be diversified across the globe.
44 different countries over 121000 difference facts and I took towards.
Large guy -- smog by this -- -- -- 5% of the large value portfolio.
They people have a common thread is a great dividend ATT -- five point 1%.
And GE is over 3%.
They're paying you to hold it and you have the upside potential the market as well so it in my opinion the I'm multinationals in the portfolio.
So that you can capture the -- by the market.
On the other side of that is in the have to be careful about as he said the bonds at a market -- you wanna have those short term bonds in the portfolio you.
And another area network kind of looking at and we're actually investing into is a structured side the bond market as well structured.
Bond notes are a great way to -- right in portfolio.
In an -- very very small way as well this -- Kimberly Foss bribed his currency could ideas and Smart thoughts thank you -- -- for reported us.
