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-- well our next guest has -- whether they taper or not the Fed's overall liquidity strategy.
Has been flawed from the get go Tom Carson Carson advisors president and chief investment officer is here in studio and and we heard a report from our reporter out in Boston he's gonna mean -- on the defense about the tapering -- in the liquidity program if you well.
You say that this thing -- -- a mess from the beginning what do you mean by that.
Well I think if you look at the fundamental problems -- trying to address which is the employment rate I would argue that it's had little impact there.
And what we've resulted is almost a drug for the markets with all of this stimulus that's been poured in and now we've got -- of withdrawing from that drug -- -- -- -- withdraw without having an effect.
I think a lot of the equity growth that we've seen of course the NASDAQ hitting it's -- ties that we haven't seen in very long time.
A lot of that is driven by all of this liquidity that we have in the market and so.
I think there can be a lot of investors looking at the news this afternoon from Bernanke things can be a concern to many people because.
You know I've run a lot of long distance -- -- marathons and in the final stages of that your legs are tired.
You're -- any little thing can make you slip up and I think that's what I would -- the markets to I think there were in the late stages of this rally and is being driven by this look would be and a little news from the Fed.
-- in China can really have big game.
I -- that -- as well yeah I've gotten injured I like getting tired and that's again the markets are tired basically I think -- you're also saying basically you mentioned the jobs picture they -- -- picture.
That is an overall negative sign for the economy an economy your opinion has not -- recover from where it needs to -- now we're getting.
-- cross today from Goldman Sachs and Barbara they're kind of estimates on GDP right I mean these market negatives that I'm not sure the market really cares if we're looking at the -- 127.
Should I know you care about.
Sure well I think that you know you're exactly right we're chatting about that -- GDP figures -- in the last quarter GDP there were commentary about.
The and reduced consumer spending and I think that's gonna become a bigger picture in the second half of the -- I know a lot of analysts are talking about.
How they expect an acceleration of earnings growth in the second half of the year.
I think that's going to be very hard to come by we're -- you've got a lot of them investors a lot of individuals workers who have a higher payroll tax because that went back into effect January 1.
But we really haven't seen a lot of high wage earners.
Those that are going to be affected by the additional Medicare tax for the -- -- -- care.
That's gonna happen -- impact in the second half of the year.
And I think that as that starts to settle in with a lot of those investors that we're gonna see reduce spending -- so with reduced consumer spending which is two thirds of of the GDP figures.
I fail to see how we're gonna see -- continued expansion of earnings that's gonna drive this market any further.
Also know especially with you're with your clients -- -- -- -- -- investing now for and come later -- you know do you think that a lot of equity investors are missing the -- having said that.
Alternative investments are big position that your recommending -- you like twenty surely hear of your portfolio breakdown -- is alternative.
What's -- there is that -- read says that -- oddities what does that.
Sure we got -- in there in the real estate and we've got business development companies which are making loans to private US businesses.
Those are going to be typically floating rate loans oil and gas of course as a part of that were from Texas by the way so gotta gotta have that in -- -- -- -- so I -- we like energy.
But you know well a lot of it's in the traded space I think there's a lot of questions about what exactly is an alternative where is it.
What we try to do is look at for example on a property -- -- we look at the underlying asset what is the underlying fundamental investment that's inside of that company firfer property -- it's the actual tangible real estate.
For business development companies as the actual loans and so we would classify those an adult.
Request apparently you go wild at shell you mentioned energy last year -- the show you picked at the stock is actually down you know.
-- -- or percentage -- every second with -- and.
We are -- we we are we I think the last time I was on we talked about that and apple were -- by that as well now they're both.
What we think are longer term values and that's what we're trying to do in this mark we've got about 25% in cash right now as well and our clients who were near retirement in retirement they're looking for income we're trying it'd be very mindful of deploying that cash in where we see value power and with both shell and apple we think that we've got good valuation.
Would love to have you back to work -- are had a great to have you on the show I think Peterson's -- -- already talking by the way everyone at home where are we talking about apple the situation there coming up at the bottom of the hour with and Jarrett.
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