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Markets he's advising his clients to stop looking for an exit these little cautious -- is the president and CEO the Philadelphia trust company.
Joins me now Mike you are a little cautious -- do you what could trigger a big wave of suddenly -- some pretty dire headlines.
The economic grind picture not that great OK we had a dropping claim -- -- -- You know the fundamentals economic fundamentals -- not really reflected in the -- -- but what's gonna trigger a wave of selling in your mind.
Player right on target them on the markets fundamentally divorce from the for the from the economy and the economies worldwide are all slowing China Europe the US the numbers are not good.
And this -- this market is really engineers engineered by the Fed in the world monetary authorities.
Who keep flooding us with paper money in a paper money is finding its way into the market the market is the only place to invest -- -- everybody keeps saying.
Boy that's a good reason not to invest I don't know I don't know what else wouldn't be you know.
If it's the only place to invest I wanna stay away that's interesting you mentioned the -- but as long as the Fed keeps.
You know buying all of these these -- mom thought the month 85 billion why would you be out of the markets is what's keeping it flooded.
Well I'm not out of the market I'm in the market but I mean there reluctantly because the Fed is fine because now Europe has decided they're no longer than -- -- austerity they're gonna begin to prime the pump so.
-- -- I think we've seen for the last two days in the market is.
Belief that this European stimulus is coming and -- stimulus will do little of the stimulus is done with the lead to a higher market.
All I'm saying is all engineered markets come to come to a bad ending in this -- will come to a bit ending as well.
When I don't know it could be some time -- but you've got to be real careful.
You've got to keep your eye on the Yankees you've got to -- where you can get out of the -- and in case the time comes to you've got to -- -- so how do you play this is an investor what's your strategy what what do you look at how do you stay close to the exit.
You got to rotate out of sectors that are outperforming into sectors that are underperforming because this is a -- -- will lift all boats so for instance the last couple of days we've rotated out of staples.
We've sold Procter & Gamble we've sold Colgate.
We've sold look Clorox or think will mean a few other staples itself and we've rotated into some some of the technology stocks that have been out of favor.
Technology is going to be a late story this year the story -- -- fourth quarter.
But we think that this compelling valuation metrics there and you'd be better served by owning.
-- technology and energy than you are only staples and discretionary it's.
What kind of -- do you think the earnings season is giving his right now it's kind of difficult to read into war as we look down the road as to what we -- -- project the second.
Certainly the guidance that we've seen so far on the -- hasn't been that -- hasn't.
Now and I don't think earnings there is important as they once -- there's been a huge reduction in share count since the bottom in 08 more -- first quarter of 09.
-- corporations have been buying back as much stock as they possibly can get away with therefore reducing this year camp making the per share number comparisons a little bit tricky the revenue numbers are much more important and revenue hasn't been that good this quarter revenue is definitely slowing down.
And the market should be slowing down with revenue but it's not and it's not because of this worldwide -- of money.
Ladies you know you say that the United States is the Switzerland of the 21 century does that mean where -- Boring only neutral or does it mean that -- -- I think he's safe haven.
-- -- -- Well I wish we were morally neutral but we are at a safe -- I think it's where the safe haven locally Cyprus began to happen -- I'm ritual for what -- it's gonna be bad -- market.
But I didn't think that if they get through it that's music European money is now gonna come to the United States because we are perceived to be to -- -- -- absolute best -- In a pretty bad neighborhood you're now seeing Japanese money come into -- -- -- you've seen Russian money from the Fillmore in Middle East and money has always come into a market.
This is perceived to be the best most stable -- this market in the world and with low interest rates that's gonna continue for some time.
When it stops it's going to be really ugly the question is when is -- gonna stop and that's the big question the best house and in that neighborhood -- said Mike -- and.
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