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So let's look at Japan's market down more than 6%.
Now officially in a bear market it was a bruising sell off clearly down more than 20%.
Since may 23.
Charles immigrants Korea's vice chairman of -- investments -- run the aerial focused on joining us now from Chicago on our we'd do for the same come down.
-- We're not is the short answer Japan is going through some wild changes in their economic policies they're fed policy is the equivalent of the Fed.
Is been dramatically trying to devalue their currency.
They have these very strange interest rates where their ten year.
Japanese bond yield was something like point 4%.
So those were all very unusual situations and they don't apply the US.
But don't you think we're due in due for an even bigger shock we're going -- was on earlier talking -- -- the Federal Reserve needs to do a good job of communicating what it's doing to investors.
You know what the Central Bank doesn't oh investors any -- there it's not their job to save us from let's save us from about losing money.
And to that point if you're buying treasuries here even and -- argue in idiots.
But that's -- strong word but I would say you're making a mistake I have been saying on your show.
When you asked me similar questions that you probably were not Smart let's put it that way to own a ten year treasury at one point 6%.
It's gone all the way out in interest rate to 2.2 percent.
And so the value of bonds has come down already a lot and we think they're gonna come down more so to we would say it is unwise.
-- do you think that the yields will continue to rise even if the Fed doesn't get some sort of indication about.
I'm pulling out of the bond buying program simply because our economy.
Looks okay from here.
Yeah that that's a good point many people have gone into bonds because they're afraid and -- this the economies look stronger which we think it's going to look.
Then there's a natural rotation to go out of that safe.
-- where you are you -- negative real return inflation is probably running right around.
22 and a half percent and so -- 2.2 percent you get on a treasury bond is a negative real year yield and so we think people will move out of bonds.
Speaking of stocks like that -- -- business looks good in terms of job creation this country the energy business is going great guns.
Looking at your -- the focus on -- how easily beating the S&P 500 this year it's up 21%.
Are those some of the areas that are where you're putting money to work right now Charlie.
That's a great question actually we've been been in industries that benefit from those -- without necessarily being directly in those -- let me say what I mean by that.
Banks investment banks financial services firms are benefiting from.
The recovery in housing from the energy business from the auto business so the investment banks have been doing much better.
The money managers have been doing much better.
-- some a lot of the housing stocks have already run a lot and they're not particularly attractive right now but there are other industries that are gonna benefit from those recoveries.
It's great to see you as always thank you thank -- Charlie and congratulations on fund's performance tell -- -- with --
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