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We'll talk of fed tapering.
Certainly one of the things -- -- the markets today next guest has a pullback is actually a good thing right now service capital CEO and chief investment officer Robert -- Here you are and well there's a former Fed Chairman Paul Volcker is going to be speaking.
Fourteen minutes from now the economic club of New York actually up the street.
He's one of the critics of the Fed's bond buying program and he says this is stimulus.
And it has got to be pulled away does that hurt the markets or are they expecting.
Well you know I think it's definitely been telegraph now -- that the Fed is going to be at least slamming on the breaks here pretty soon.
But you have to keep in mind and -- right now the buying programs 85 billion dollars a month and they're not talking about raising interest rates they're just talking about the potential.
A slowing down the bond buying program so overall I don't see this is a huge issue for the market in the short term.
But I do think there -- some areas that are very vulnerable areas that you're seeing today.
Which -- the traditional safe havens out there like utilities.
Telecom in staples.
That with -- without -- stimulus for just a very overvalued sector right now.
And when you're seeing the decline today it's those stocks -- actually leading the way down in the higher beater stuff beta stocks the ones that have underperformed.
But have relatively better valuations are the ones that are leading the way on the upside right now so I think you're seeing our rotation.
And that's part of this correction in the four -- 5% that we're expecting right now.
You're looking for that in the S&P I go to the S&P in particular because that again has had record after record we've sent out on -- any S&P you have like say a 4%.
Correction for example that is a time to -- your opinion right that's when viewers to be getting yet.
Yeah I think so that takes us back to the fifty day moving average which has been really some good support for the market and in particular of the S&P.
But like I said you want to be a little bit more selective I don't think you go anybody S&P is a hole.
Look for some of those underperforming industrial names technology names and even some of the financials right now that we think will let -- -- -- way up.
But don't necessarily jump back into a Procter & Gamble or General Mills so I think those have a little bit further to go on the downside before you -- -- look at those.
Let me ask you this I was looking at some of the -- will have a big data coming up McVeigh yesterday a consumer confidence yesterday we had.
Obviously the house -- it came up that was that was positive of this huge.
At the same time it seems like we still have the shaky market and a big piece of that is China -- one group coming out the IMF frankly and saying that China is gonna -- down back kind of seems to shake the markets so easily is that's a problem in your opinion.
Yeah meantime has been a big god growth story for the last decade here so -- you're seeing that's slowing down.
Yeah we're a little bit concerned it worth the next leg you're -- -- growth going to be coming from.
But I think with an emerging markets in particular the bricks Brazil Russia India and China.
That's kind of the last decade story.
Even Jim O'Neill who coined the terms bricks is now switched over to an eleven story.
And the smaller more faster growing emerging markets like Turkey Mexico the Philippines I think those are going to be the next wave of growth so.
Traditional areas like China I I don't think looking out years are gonna be as big a deal as they are right now you know.
You weren't here is may it is may of 2012 and you picked a company that actually has -- you picked but tell.
Coming involving -- talk about -- -- the stock is actually performed especially in the last.
Six months consumer -- two point eight obviously is still -- itself.
Yeah I'd like Mattel obviously not as much as I liked -- last year I mean the valuations are are not quite as compelling.
That being said I think as part of an overall portfolio it still makes sense if you look at -- earnings on the talents trading at about fourteen times earnings.
You still able to get a good dividend yield there about 3%.
And it's growing top line pretty good nine to 10%.
So if you're still looking for some dividend yield.
Compare that to something like a Procter & Gamble -- trading at nineteen times forward earnings and has a lower dividend yield I think it makes sense for investors as part of an overall diversity.
Five per fully met and they like Siskel and play that -- -- mama -- performing so we're gonna keep an eye on all of that but nice second itself good job Robert and -- thank you very much Robert thanks job.
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