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BlackRock Global Chief Investment Strategist Russ Koesterich on strategies to boost investors’ portfolios.
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Now let's talk specifically about what you should do with your money whatever stocks you -- should you stand them should you be adding what happens -- -- -- will close thinks it's not going to be a pretty day.
-- us rest costs are expressed ostriches with black Rockies that global chief investment strategist.
And and the first let me just get your thought on the sequestered no drag today wreck.
-- break today yeah that thing about the sequester Liz -- you know this is not a clip this this is a slow.
Nothing changes on Monday the world succumb to it and now over time if this is not reversed.
He is -- exert some modest -- economy we'll probably start to see that in April.
-- start to manifests itself in the numbers by may but in the near term this is not changing very much.
Well let's go to Florida march 27 perhaps that's that's a more important point.
The CR in -- continuing resolution that could be a real issue we -- we're trying not to just be look at today.
How serious is that a pivot government shut down we haven't seen that be positive for the markets in the past when it happened.
And and it will it will not be so if for some reason.
There's not an extension of the continuing resolution.
That would be a major negative for the markets for the economy.
Our expectation if you will get some extension the real question is going to -- what is it gonna look like will you locking these cuts will some of them be reversed.
Up I think the one we're sure of is that when we look at these fiscal huge for the rest of the year you've got the march 27 deadline this year is you suggest.
You've got -- debt ceiling again this summer.
And probably would -- resolution you get is only last for six months so the fall wouldn't be back to another budget discussion and battle so some things look Thoratec.
OK you are looking outside the US borders and US to countries at the moment that you like investing -- I'm gonna bet that some of our viewers have never thought about putting money into Norway and Sweden but you say yes why is that we'll show a couple of the Scandinavian ETFs just to give people an idea how they can do -- basket investment.
Sure that that's great but these are countries -- -- broader -- that -- you know I spoke about the past.
Which is that many of the smaller developed markets -- we're not talking about emerging markets here but smaller developed markets came out of the financial crisis in better shape.
Their budgets are balanced they have much -- get their labor markets less traumatized.
-- only -- energy examples of that.
And -- technically in Europe you don't have the same exposure to the Euro zone's problems that you do the let's say Germany France and Italy.
So these are examples of countries within Europe.
Thank you think offer some good long term opportunity.
It's OK -- -- about dividends I have to pick your brain on dividends -- you we've seen some thirty companies in January alone.
Another seven or so hiking near dividends -- -- -- just the past ten day Israeli.
Tell me exactly what you make of this is that an overcrowded trade at this point or is -- that gift that continues to keep on giving.
I think overall having that exposure dividends even an overweight makes sense I mean this is a strategy that is historically at least.
Outperformed enough bull and bear markets now you raise an excellent point you can be too much of a good thing.
And there are parts of this that -- credits so one of the parts -- -- -- concerned about.
Mostly in the United States utilities in rates two segments of the market that have run up very far the last few years.
Largely on this dividend theme -- both -- -- extended.
So one of our idea is is to look for dividends but look outside the United States not only places like Norway and Sweden.
Which he spoke about a moment ago but also places in southeast Asia Hong Kong Singapore.
We can get an attractive yield at a lower price.
Russ thank you so much we do appreciate the perspective on this -- and rest ostrich has been a guy who steered our viewers in the right direction.
Just about every time you've been onset thank you so much good to have you.
-- -- You -- -- -- storage of BlackRock okay.
