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Blackstone Advisory Partners Vice Chairman Byron Wien on the sectors for investors to buy into and to avoid in this market.
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He's seeing red today despite hitting its best level since October of 2007.
Blackstone advisory -- as vice chairman doesn't necessarily have.
High hopes for the -- hit them with 210 billion in assets under his watch.
Investors you could that are listening joining us now is Byron -- Blackstone advisory partners vice chair of Byron thank you so much for being here.
Okay stocks have been at their best levels in five is that we've seen that momentum.
Right now the Dow off a 155 points below -- the -- -- vaulted.
Pull back -- we're talking about that -- analysts say liquid and and we need a correction but then we're gonna stop building again how do you how do you see this playing you know.
The beginning of the year I was cautious.
My view was that profits were going to be squeezed and I had an estimate of S&P earnings beat down for the year.
The consensus was up about 10% in hand on the market -- took off in January.
Primarily I think because one.
There was some kind of deal on the fiscal cliff although I was very disappointed and and two there was enormous monetary easing.
And it was monetary easing that really drove stock prices higher in spite of the fact that fundamentals what -- somewhat mixed.
So now it looks like the but -- has been passed from monetary easing to fundamentals fundamentals aren't so great.
Margins probably are going to be squeezed and the market is recognizing them so as -- invest up.
-- -- sectors of the best play is under your and as well you see the market developing.
Well I think the economy could be slower you know the 2% payroll tax holiday ending its gonna affect consumer spending.
To sequester is gonna reduce government spending so I think the economy is gonna -- perhaps to 2% but not to a lot better -- So I think he ought to go with the growth sectors -- parts of technology that'll do well look I'm particularly like some pharmaceutical companies.
Which funds have been taken -- I can't get enough -- -- all right so let's go the LA what would you avoid Byron at this stage.
Well I I don't know who I would avoid the financial side things are gonna -- it it did very well last year and I think there.
Pretty full and prices I would avoid energy because I think the price of oil's gonna come down a lot for and an already announced -- somewhat the that the -- -- -- based on the fact that we're gonna.
We're moving toward self sufficiency in North America.
And we're drilling enormous amounts of oil out of Iraq.
In North Dakota we're going to be doing.
Wyoming.
Colorado -- and other states so kind of pricey talking about on -- I think can go below eighty really.
Yeah out of some maverick who you.
And -- our reach -- but it's definitely going to now heading down.
Price of about gold certainly seems so lost a bit of its shine into when he thirteen.
Has had twelve straight years of gains.
We -- go well a consolidated third a couple of years yeah hero hasn't done much.
Since it reached 19100.
My feeling is gold is still does I like it is insurance policy.
-- is a commodity speculation.
I think -- found the volatility in the markets occurs is I think who will you're gonna be glad you own some gold.
And we've seen central banks just piling up that gold.
People like surprising amounts you know we.
We're seeing enormous monetary expansion.
In the United States and Europe and -- you know you're gonna would -- currencies are being debased you're gonna want to own something real hold Israel.
Very good and and we we were talking before in the commercial break about what's going on and it's yet another whether the sell -- now on wouldn't.
75 points on the downside for the that's all related to what's going on in Italy but does -- concern -- That we could get back into the mess that was driving the markets his so much last year.
I don't think we're gonna get back into that Madison but I do think you're prison recession and it's not going to be an important contributor to US growth that it could hurt the markets -- -- could we keep getting those airlines Europe is a factor hurting them profit margin squeezes a factor.
Reduce government spending as a factor there are a lot of negative factors out there.
Wish you a more optimistic that Byron -- thank you so much for being here really appreciate it thank you.
