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Q for -- rebound at least that's the message for my next guest who is here with some ideas to help you cash and the when it happens but you gotta be position before it happens joining me now in the first on fox at midday -- The chief investment strategist at Morgan Stanley Smith Barney one point seven trillion in client assets.
People got -- last week David and they thought oh this is the beginning of a long summer correction is it.
Consumer confidence housing and jobs all four of those last week.
We're very weak and that basically says to us this is a soft patch we think it's not going to go negative -- become a double -- we think that.
This is a time to be very careful and defensive -- own defensive type type names three names that we like our eyes are.
Procter & Gamble and PepsiCo.
-- yields three point 7%.
PepsiCo yields 3.2 percent folks when he says -- that means dividends that's about it it -- -- stopped as you get paid -- that's right.
We we think that this is a time to -- regrouped to be careful.
We gonna basically that there's something that you've got to wait for which is July 8 not July 1 that's that's for second Friday this time in July for technical reasons it'll be reported then that's the job numbers that you all have been.
Talking about your on Fox Business.
Fox Business -- we wanna -- you.
That train we all wanna take on the subway up and Liz claimant -- -- LC OK -- -- gap that's the dolls that's the subways and we wanna put these magnets on river experts military and that's right that's right let's claimant -- but.
Coming back -- we think this is a soft patch we do not think that it is a -- Sat back.
We got us out double -- no double dip to Pfizer for -- don't.
Fox has a good PE meaning you're not paying too much for price earnings ratio is -- nine yet they've had some management changes Jeff can work out how the new -- doing what they do about the pipeline and -- Lipitor which is the largest selling -- of all time they sell twelve billion dollars a year billion that's what that's showing off patent.
But as you know they've acquired Wyeth and they've acquired King Pharmaceuticals.
King Pharmaceuticals -- pain management Wyatt has a lot larger suite of drugs and we see date the the efficiencies the savings.
Hot and the pipeline being filled up by these two acquisitions health care stocks with the market up only 2% this year the health care stocks are up 11%.
Now I -- this is waterproofing a portfolio for the summer storms that may be comment PepsiCo why not Coca-Cola -- Pepsi well we see the PepsiCo has very good momentum in the domestic market they're putting in more money into the ad spending.
We see the international park which is lower than the international part of -- Coke.
They pet the app PepsiCo is 31%.
Exposure to emerging markets which is less than Coca-Cola -- As you know list.
40% of their sales are Frito-Lay.
And there -- they have they are twelve times bigger than the number two player.
So they are dominant -- that too was a very high margin product practical food not necessarily to drink that's right see on the national scale and Procter & Gamble with the that when you basically have seen management.
Has showed down low world they've had rising commodity prices which we talked about before that cut into margins we see -- increasing their spending.
Increasing there and this is another one of these huge -- emerging market exposure -- 176.
Touches three billion of the six and a half billion people on the planet every day.
Congress claims and now we're looking sort of at the macro picture that they will come to a debt ceiling.
Deal by July 4 -- -- if it doesn't.
Liz I would love to see that because as you have reported here Moody's.
Has said standard and war is actually downgraded the outlook.
The only US credit rating to negative from from stable.
-- Moody's said this past week.
-- action unless unless -- we get some movement here by July they're actually going to have -- put out a note on the the credit rating of the United -- so that's putting a little pressure by the July 4 holiday when people go -- recession.
I think these congress men and women.
In the senate and the house want to go home.
And not have this hanging over them.
Because it's a it's a concern to everybody else.
Right before July 4 weekend -- -- -- -- time anywhere within volume David is with us all day long fives -- PepsiCo Procter & Gamble -- his tour.
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