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Well my next guest says that commodities are the only way to hedge against what he calls the quote current lack of courage in Washington in fact he's saying short.
Politicians from all Dietrich of the CEO I think about officer.
At fox -- capital management about 900 billion dollars in assets under management with us today in a Fox Business exclusive.
WR were just talking a -- of you really how closely do you watch Washington isn't very closely it.
It affects so much I mean let's face it.
If if tomorrow the politicians got their acts together.
And actually started to cut the deficit and deal with the Big Three issues that this is how investors will know whether anything's going to change in Washington.
We have to come to grips with Medicare social security and defense spending and when they're talking about anything else it's just on the margins it has no effect.
But so long as they don't get their act together.
-- we do have to short Washington and one of the ways to do that is that we're going to have a continuing.
Drop in the dollar.
Because they're gonna print more money to pay for all these deficits today it's up it's up -- -- up.
Against the Euro largely because of the Euro crisis but once the central banks in Europe deal with that however they do deal -- that.
Then the dollar's gonna go down gold is also -- and it means that a lot of sophisticated investors believe.
That that's the way to hedge against -- European.
Crisis and that's gonna continue.
Aren't there always -- -- -- to make money stocks that you couldn't buy no matter what the climate is in Washington that people really want up.
Utilize and therefore the product will be bought and people will do well with the holding these stocks.
Well I think so and I think commodities -- are warning area.
I mean I know we've had a little correction but they've they've done exceedingly well over the last few months very well but they got a little bit ahead of their fundamentals and so we're having a normal.
Healthy correction that I think will probably continue through most of the summer you talk about.
Outperformance and three themes that will get me started on outperforming.
The the headlines that are the markets at the moment what are those three.
I see them counts as one.
The dollar's gonna continue to go down -- long run because of Asian and emerging markets infrastructure spending I believe commodities are gonna go.
Are going to continue to go up.
And that's -- do hedge against inflation is with a commodity so I believe were part of a ten to fifteen year long term bull market in commodities.
And that's something that moved we have fifteen to 20% of fox all capital and most of our clients.
Portfolios of commodities and commodity producers.
The second area is the growth of Asian and emerging markets but.
I actually believe it's going to be those companies that are focused on the consumer sector and services in Asia you know -- Okay but let me jump did you just heard -- Willis talking about how it appears that there is at least a simmering down.
Of what's going on in Asia particularly China which has been some unbelievably hot girl waiting for that to calm down to.
India just raised its rates recently you've got -- China and India.
That -- India of the brick nations where people sent a wait a minute maybe it's not the big exciting area that we thought it would be.
This for long term global investors the news today is the best news we can happen -- that government policies and Asia are actually working we know that the growth that they have in China and the rest of the world was unsustainable.
And what they're doing by raising these rights is they're getting them down to sustainable levels so for those of us -- -- you know long term global investors.
This is the best news that we can.
Paul actually now says take what he has told you -- and invest in the coming up stuff.
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