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Washington the inaction is paralyzing the markets with the major indices moving between slight gains and losses all day the Dow and SB.
Trying to break their four day losing streak and is this the pull back that some investors.
Have been waiting for some since January want to bring in David -- president chief investment strategist at point view wealth management it's good to have you here.
We have heard people say that we would have a -- going way back to -- January and you think that will have a dip somewhere between four and 8% but not the Big Ten percent correction.
I think we're extremely set up for that -- We're in an aging bull market the stock -- about a 150%.
Since March 0990%.
Year to date but now we've got all these headwinds in our face from both.
Fiscal and monetary policy.
So it almost would be healthy for the market to have some sort of pull back.
We still end up with a double digit year.
And of course the fact it matters interest rates are going car that puts pressure multiples incorporate I have not kept pace with this recent rally since probably -- healthy thing.
Time we had to debt ceiling battle the markets.
Got all volatile if you will of course that led to the fiscal cliff ultimately the sequestration he'd been down this road before this is my point.
Does the market question the credibility in DC -- -- and why is it in this sort of lock locked up pattern right now.
Yeah certainly the market questions the credibility of DC I mean.
You know it's understandable way because -- ultimate safe haven on the planet is really the US government debt.
They've got to printing press they've always fulfill their obligations and when you start.
Calling into question our.
Our obligations are that debt then you where are -- benchmark interest rates on the other hand look at it from investor point of view you know.
Are people who are let's say going out to buy Coca-Cola or buying toothpaste Procter & Gamble does that really -- -- is it really affecting the fundamentals.
Of companies that I would argue now that you know you should look -- -- take a longer term horizons so let's talk about longer term horizon because at the end of the day they're going to do something eventually going to do it but there are headwinds have differences we were talking before the programs started.
About -- -- shopping season already we're seeing indications that it's not going to be good for retailers.
And that this could be the kind of thing that its revenue and essentially earnings I mean if I'm an investor right now that worries me.
Looking long term way to I put my money should -- be perhaps taking some profits right now.
Well we're not big -- that consumer discretionary area because that has had a big run up.
I -- in so you know where it depends where your time arises as -- -- you wanna be taking profits I think the short term trading is extremely difficult.
We prefer to focus on those fundamentals.
And -- at the end of the day.
Don't think that because there's you know 27 days and holiday shopping season for to 28 should cause you tick -- profits in a well run retail.
Meantime David I noticed that you like large cap technology stocks that if basically been dead money this year Oracle's one particular that you like so where's the value here what is the play.
Yep well it is is is a great area because it's not showing the growth that -- attracted to growth investors but it's not quite cheap enough for value invested so it's kind of on wanted and that's where we like to look for opportunities as it did it in play.
You've got all sorts of companies who are generating tremendous cash flow.
And it's not a politically capitalist business in their increased the dividends that's what they're investors want the -- might highlight is oracle which -- -- their revenues over the last ten years but.
19% for Microsoft -- that category.
I think it does I think it doesn't mean we're look concerned that's okay yeah yeah.
And I think you can come away absolutely suggest something you definitely want to look at I mean no one -- more cash flow -- now Microsoft you cut it thank you David you.
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