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But first tonight's top story -- good news for people with a 401K.
Another all time record high for the broader market today the S&P 500.
Hitting an all time high now while we enjoy the recent gains it's easy to forget some highly easy reality is for example it's exactly three years since the flash crash.
An event -- to stabilize the market since then nothing has been done to fix the underlying problem and some say it's gotten worse.
So what's an investor to do with us now frank -- -- The president and CEO of planned financial services.
And -- Leclerc the CIO and portfolio manager at -- Cherokee art advisors -- I'm gonna start with you here on the set here with me.
Talked to me about the markets you know certainly we saw the S&P 500 hitting a new high today.
-- -- -- -- -- -- Good question I could go for awhile but what I guess the best way for us to frame it is with respect to really what's going on and that is this.
The fact that cost some money is phony.
And that it's creating these sort of -- bubbles first it was gold gold peaked out about eighteen months ago at 19100.
And then now that is of course up bonds have never been more expensive for -- interest rates are very low and then now what's happening is that.
Investors seeking -- have have now migrated towards stocks so its -- up.
But -- confusing war it's a new world -- do you.
-- I'm sorry frank -- you just mentioned this idea that.
-- bonds may be in a bubble are you concerned about them which market deal I better stocks or bonds -- right now.
-- compared to the two we feel stocks offer more opportunity and actually security then.
Fixed income -- with interest rates being low.
I think people are are driving to that area to invest but with interest rates especially going to to rise I think that and any long term bond.
You're gonna expose yourself -- interest rate risk.
I think people are really worried about that Martin do you you know I mention the flash crash.
In the introduction to this segment you know nothing has changed there still all the black pools.
Anything to be happening that it -- individual investors would know nothing about.
Does it concern you what do you tell your clients about this.
While it's in everyone's interest from this to market to be healthy at all times and certainly.
And with the people who speculate in the markets who.
Buy things because they've gone up and sell things because they gone down traders.
There it's a real concern for them but for us it's not so much of a concern because we have we first -- -- look at the cash flow stalks or are generating.
And liquidity for us is really secondary.
If you but but it that is a concern and and I think individual investors really have to be aware that.
You don't want to sell your stocks in the declining market he is.
If -- don't have that right now.
Don't have to worry about -- -- right now freaked seal how would you comment on something that Dick Grasso said on our show.
Last week expressing concerns over the safety and the security the markets listen to this.
Of the markets in this country is upside down house more than 60% of what happens each day happens in dark pools and in.
I call them pond is that no one can swing men.
And that's wrong ones you say we have a flash crash anytime at all what do you mean by that.
-- -- -- -- What we don't think that -- I was -- likelihood of a flash crash occurring in any any any point.
I really think investors really need to be more focused on the day -- day what's happening in the market place and -- impact on.
On the portfolio -- much what happens in the dark pools early more institution to institution.
And impact people that are really daily trading and not on technical basis.
-- we were talking about this said new product out there is getting a lot of ink in the Wall Street Journal today.
To find maturity ETFs basically these are bond funds and don't act like -- they act more like bonds is that a welcome addition is that something that you have any interest in.
-- -- -- Well I really don't because of the ten year rate is still -- 2% so.
Can you tie your money up for two percentage is tough -- has been very attractive.
Okay let's talk about do it yourself investing DIY investing.
What people out there expected -- this melt down.
That individual investors would this and when -- go get some professional advice didn't happen take a look at these numbers.
The growth in the -- advisors 9% the -- -- people doing their own investing 10%.
We're looking at the years 2008 to 2011.
-- -- isn't surprising do you think people are making.
Well -- obviously as a professional -- we think people who should be seeking in a professional help.
-- -- gonna have that those that feel that The Home Depot approach is a better way to go.
But when you look at professional rises or access -- information and the fact that they approach things and an unbiased manner.
I think people would benefit from that type of clarity on what's going on in the market.
As well as -- out tying that into the financial picture that they're trying to develop for their family.
I think it speaks to the fact the people are still.
I'm trusting of the markets and Unser trusting of anybody they think is associated with the markets we just had a survey last week for Bankrate dot com.
That show the 76% of folks don't want to be invested in stocks even now after this incredible run out.
How Long Will it take for that confidence to come back to you expect to see you back come.
And it's come back well -- -- drives the heart of the paradox of investing in that this is it when things seemed risky is this when the police risk because price is the most important.
Determine in future race returned so and 09 after.
The real estate crash in the crash of 2000 and the crash again to 20092008.
Things looked really really scary and now things look better because we're back to those levels of 2007.
But I get in -- your chair Martin because I think people were focused on prices they were focused on the -- -- said the assets that they own not the market levels so you look at what -- happened to your house price she looked at what happened to your site or 01 K.
And it was hard to be anything but truly disturbed.
And then people are still afraid and and part of the -- statistic you mentioned earlier drives the point that.
Advisors tend to do the wrong things at the right -- wrong time as well.
And end it's it's like any other profession there's only certain percentage to really really confident and and and you've already got it as a profession we have and prove our worth to the to the average person.
Well you know some people are good and some people and just like anything else any other profession guys Franken Martin thanks for coming on tonight.
Great job -- you really appreciate your time.
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