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Can Investors Gain from U.S. Shale Gas Exports?

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    WL Ross & Co. CEO Wilbur Ross on the sectors for investor to watch.

  • Duration 6:35
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Well this guy knows financials pretty well billionaire investor Wilbur Ross is shifting gears investing in transportation.

As well -- shale gas so.

What kind of investment opportunities are there and that -- -- you can buy into along with a billionaire joining us now Wilbur Ross WL Ross chairman and CEO good to see in look at the tsunami if for some -- -- talk about financials for second this news there that -- is.

Looks like get a lot of these financials are getting back on their feet full -- now is is that an area where you'd invest money well.

As you know we have a half a dozen banks in the US -- many of which we bought from the -- C during the bad period.

We expect recently we did another secondary for bankunited.

To broaden the market and get into a little bit out from under conditions in the hands of private equity.

More -- -- conventional cherub things they're doing very very well.

Then I think this is another step by the Fed technology in the financial crisis is largely behind us now.

We have Dick bove -- on earlier banking greats.

Terrific analysts and he.

He said you know is something wrong with a country when it has to give permission to banks to issue dividends were to do buybacks do you agree with him.

Well I think that -- because of the problems that the banks had which we're pretty severe.

That tends to result in at least temporary over regulation and I think that's a phrase we're going through right.

So is it time to ratchet back even as we have more financial race comes in.

Well I think it is in I think this time.

They did the stress tests much more carefully -- and save the Europeans have done fairly and these -- meant to be real stressed us.

So it satisfied the regulators that.

It's okay for these fellows -- buy back stock and paid dividends and I think that's also very reassuring to the public.

By the way you were you were into a mortgage servicing for wants Allen and I'm just wondering what your views are on housing market is that.

Rally for real housing market is trying to and I think it in the -- -- period ended paragraph I mean it has turned around no question.

It has turned chart largely inspired by pent up demand Christmas and several years he had continued.

Family formation but people were afraid to buy houses.

So they had dealt with their parents they head out from apartments.

Now they're starting to buy houses -- -- aided and abetted by the extremely low.

Interest rates and high loan to value.

Though we hear that a lot of the younger folks who forty years ago would immediately start to start a family buy a house.

Are less enthusiastic about but maybe they'll rent for twenty years.

Well I don't but I bet the rent for twenty years with some of the young folks are unfortunately burdened with a lot of student debt that's right and that's a phenomenon that really didn't exist so much -- years ago I had student that I'm gonna school -- Most folks that now.

How many years is take you to pay it off muscle.

Wondered to pick up pick up -- you -- -- transportation.

The word that Wilbur Ross is get into transportation is a lot of people's curiosity -- what kind of transportation -- The so quickly marine transport mostly to play on the shale gas and tight oil.

Phenomenon because of the US I believe there's going to become very major exporter.

Of shale gas.

Some and there are a lot of their lot of steps before we get into with the efficient.

Production of LNG liquefied natural gas and have all the regular regulations broken down -- prevent that from happening.

Well they're also regulatory risk and that's one that we're taking on -- really at risk -- in two regards one is will there be mindless regulation of fracking.

Even though there have been over a million wells drilled in this country over the years the very very few.

Problems and even though there is some very strong democratic advocates including former governor Rendell.

About Pennsylvania.

Who's seen how it transform the economy.

Of his thing that could do the same thing in governor.

Goes along with I believe and hope he's well but what about on a national scale you have -- regulations preventing movement of liquefied natural gas do you think the the Obama administration which started out saying were against all.

Carbon energy do you think -- may be they're looking -- and say well released natural gas is cleaner maybe we can get some tax revenue maybe -- -- so bad.

Well natural gas is cheaper and much less polluted then our cold days -- we don't have this only -- you sell the president on that well.

I think that has people around him should know it and probably do because it's wonderful that promote electric cars.

But somebody has to make the electricity the doesn't just live in the -- of your garage the need to be liberated with a plug.

So a whole.

You have to get it out and right -- about a third of all electricity comes some -- The other another third -- -- comes from coal I believe -- largely displace coal and that will bring down carbon emissions a lot.

Right now you're not a stock picker we go to other people for that but you have bought -- to Exco Resources which was up about 10%.

I think you probably exceeded the the point -- by point which was I don't believe I looked it up who was six dollars 78 -- you bought it for -- now.

At about 780 shares so you're winner well -- took me awhile.

Could win by a true if you -- and -- -- no -- exco is one of the larger exploration and production companies somebody wants to get in a -- guess is that the place to start well.

I own and so I obviously believe in it but -- also other ways that one could -- I think the main -- has.

Natural gases severely undervalued 36 to her.

And see that's the unity and measure.

A few years ago was that fourteen.

I don't think -- -- -- back considerably -- fourteen.

Voted to come up.

We they're give me the break I have to ask you this market is it for real this rally -- think the right.

-- is for real in the sense that we didn't go over the cliff.

I think people know the sequester is not the end of the earth and all it is -- start and paying down debt.

-- the federal government and I think the European crisis is gradually resolve itself.

Wilbur Ross great advice and great analysis thank you very much terrific to see again well -- --

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