Also in this playlist...
This transcript is automatically generated
So much turmoil in this world but the markets have been rallying the Dow yesterday closing.
At a new all time high and that's in -- was just less than a point away from its record close and knew what.
At that joining us now from Washington DC is Paul -- not he is managing director -- not a car group overseeing about two billion dollars in assets.
Why isn't the Cyprus situation -- evidence of instability in the banking system.
You look at what has happened in the UK today a demand by the Bank of England for more capital from its banks.
Yes it's it's a very unfortunate situation that's occurring there you feel for for the people there.
All however what what is happening is.
They do you have a rescue package they're gonna -- of the thirteen billion dollars put into context the GDP.
Of the country is 2.4 point five billion dollars about the size of of Vermont.
So they ECB the central banks have -- have stepped in here to put together a package.
And they will get through it there's a lot of pain being felt now and again I feel.
Still for all the good people on the businesses that are going on there what's happening globally is all the central banks have made it.
Almost a policy now to support.
Asset prices and so when he has situations like this -- rising.
They are coming in and there are stepping in to help stimulate the asset prices and and provide funds.
This someday that will -- that it will and even here in the United States with -- Federer is our.
A -- -- a dangerous game even buying equities betting that the Fed will keep those measures in place and not knowing exactly when.
The Fed will start withdrawing that accommodation.
Agreed so what's really important is they have a smooth deleveraging.
So we've leveraged up for years and years and we have the death that we have now on the global -- is estimated to be 78 trillion dollars.
So what is happening now.
Is -- a deleveraging process and when you do leverage it you have bumps along the road so our consumers here in our country have.
Really for 34 years now been under way with that process.
Our government with their deficit hasn't started the process yet and that's what we hear a lot of -- on Capitol Hill.
But it will it will begin to happen so what's important is to have a smooth deleveraging.
And the and then it's -- and of course that's important but there's no guarantee that -- -- Paul really quickly.
Got it yet to choose between asset classes here all can get hit once that.
That starts to happen that when you start to get -- accommodation removed what do you like the most in terms of valuation.
We like equities.
Here and the emerging markets.
We believe that the fixed income markets have had a good thirty year run.
You have interest rates at historic.
Lowe's so when the Fed does begin to to to pull back and stop the stimulus.
You'll see a rise in any interest rates now could be some time that from before that happens.
So we like equities we feel that equities are.
Are properly priced here and if the corporations execute there.
There -- and hit their earnings estimates you should see a rise in and equities here and abroad thank you so much pop pop act not -- well.
Filter by section