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Sica Wealth Management President Jeff Sica believes the sequester is “just a distraction” from the greater problems affecting the economy.
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And 5% -- 2013 but the index coming off its worst two day -- so far this year.
We are recovering but have stocks hit their ceiling.
Our next guest calls this a -- market rally -- seek as president and chief investment officer -- seek a wealth management.
Little bit a head -- -- that we've gotten with the markets I know you haven't been a believer.
It seemed that two days ago that your predictions that this was a -- market rally -- were right but now we're back up what do you make of all this volatility.
Well the first thing is we need to put it in perspective first of all this is a liquidity.
Driven market to Federal Reserve.
Seized control -- this market through quantitative easing that's what's propelled the market the market starts to falter whenever there's even a little bit of hesitation.
-- this -- -- anything -- by the data points economic data points that we've gotten in the recent weeks with housing in an end and other and and other measures.
-- -- whatsoever I think if you really look you really drill down into the economic economic numbers this far into a so called recovery it's from.
Very difficult to give any justification.
To a market advancing on data points.
It's more of it and you have to keep in mind that the market right now has focused so much.
On the economic reports not being too good hand because so good is now -- bad has now become good.
So they could continue to justify more liquidity that's right for the prop.
Right because in effect the Fed pulling out of the markets would be positive a major positive for the markets but.
That those bad note sent two days ago is what sort of turn things around let's fast forward to the end of the month -- we have the so called sequester that could come into play.
How are you positioning yourself for a possibly major cuts in an impacted GDP as well.
First of all of the sequester itself as was the fiscal cliff.
It's just yet another distraction.
It's serious from from a psychological standpoint from a confidence.
And lawmakers standpoint.
But it's a distraction from the greater problem the greater problem being exorbitant that.
-- -- the distractions are the norm these days don't don't you think Jack I mean we've been dealing with distractions for a very long time so how do you navigate your course what is your specific.
Investments he says and wet categories do you like specifically while we're while we're working through all this outside noise.
I think the first thing is to realize that the distractions and just out distractions and begin to focus.
On the greater core issues in those core issues are what's gonna move the market forward I think.
If you have -- artificial market anything that's artificial.
Is not gonna have any staying power it's not gonna have any endurance.
And because this has been solely created by -- dude -- -- Central Bank.
And the bureaucracy behind.
How much it's gonna work people believe it's gonna work that's been the reason why there's been.
A lot of a lot of movement in commodities at hat which has been a safe haven for a lot of investors what's here take on commodities -- are you are you buying an -- seeing a pullback.
Why I made itself commodity specifically grains back in the fall on anticipating buying back because my contention is that the Federal Reserve.
As much of this services that are doing two bit to the public to investors.
Are gonna continue printing money -- -- -- the tune of 85 billion a month.
If that continues commodity prices will be the recipients of those of that price appreciation.
So I would anticipate going back into commodities.
-- -- EL saying your investment -- euros stay strong yeah it's not easy and it stays strong in this sort of environment a lot of investors a lot of our viewers get.
Get freaked out when they see the markets do a lot of visited this cease sighing.
What gives you the confidence to do seven.
Well I think in any market you have to seize the opportunities that present present themselves.
You have to keep high levels of cash when you're -- certain you can't be afraid to be in high levels of cash and also by staying strong is not giving into.
The temptation that -- focus on the distractions of the market.
Meaning if we get through this -- they delayed yet again and we could invest in celebrate or the Federal Reserve.
And continues to reiterate our stance on.
-- -- pass and stay on stay on the -- don't let us and all the noise Jesse get thank you very much good words to live by have a great weekend thanks for being with us are.
