Latest / Bloomberg Intelligence / Miller Tabak's Maley: Fed Continues To Bail Out Congress(Audio)

Transcript

Miller Tabak's Maley: Fed Continues To Bail Out Congress(Audio) · Bloomberg Intelligence

• 0:02
  Speaker 1: Global business news twenty four hours a day at Bloomberg
• 0:05
  Speaker 1: dot Com, the radio plus mobile last, and on your radio.
• 0:08
  Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Headquarters.
• 0:13
  Speaker 1: I'm Charlie Pellet. Stocks are at the best level of
• 0:15
  Speaker 1: the day, thirteen minutes to go ahead of the close.
• 0:18
  Speaker 1: The SMP five hundred index up the most in a month.
• 0:21
  Speaker 1: Right now, That index up twenty five points to two
• 0:24
  Speaker 1: thousand and eighty three, a gain of one point two percent.
• 0:27
  Speaker 1: Nes Stack up fifty seven points again, also of one
• 0:30
  Speaker 1: point two percent. Dow Jones Industrial Average up two hundred
• 0:33
  Speaker 1: twenty one points, a gain of one point three percent.
• 0:36
  Speaker 1: Gold little changed up sixty cents twelve sixty seventy ounce
• 0:41
  Speaker 1: again there of less than point one percent, a three
• 0:44
  Speaker 1: percent valley today for West Texas interviewed. The AC crude
• 0:47
  Speaker 1: up a dollar twenty seven apparel to forty four dollars
• 0:50
  Speaker 1: and seventy two cents. I'm Charlie Palloton. That's a Bloomberg
• 0:54
  Speaker 1: Business Flash, Charlie Pellot, thanks so much time now for
• 0:57
  Speaker 1: the et F report brought you by Van eck Vector's
• 1:00
  Speaker 1: e t F. Expect more from your muni's target tax
• 1:02
  Speaker 1: exempt income by maturity and credit quality, all with low
• 1:06
  Speaker 1: cost e t F s. Visit Vana dot Com slash
• 1:09
  Speaker 1: Muni vanac access the opportunities for this sweet turned around
• 1:13
  Speaker 1: Catherine Cowtery. It's an unusual e t F that embraces
• 1:18
  Speaker 1: most of the emerging markets except for one country, and
• 1:21
  Speaker 1: it was named the best new international equity e t
• 1:24
  Speaker 1: F of by e t F dot Com. Is the
• 1:27
  Speaker 1: e D Shares e M Corps x China e t F.
• 1:31
  Speaker 1: Here's Martin hooks To, a chief executive of Emerging Global Advisors.
• 1:34
  Speaker 1: People recognized the e t F because of a big
• 1:37
  Speaker 1: trend in emerging market investing, which is that portfolios are
• 1:40
  Speaker 1: becoming more and more dominated by China. Hookstra on how
• 1:43
  Speaker 1: they came up with the idea for this e t F.
• 1:46
  Speaker 1: If China the index, a lot of people will want
• 1:49
  Speaker 1: to choose their China. In other words, they might want
• 1:52
  Speaker 1: to hire an active manager they like, They might want
• 1:54
  Speaker 1: to focus on certain sectors or industries, but at any rate,
• 1:58
  Speaker 1: they don't want to necessarily buy the whole bucket. So
• 2:01
  Speaker 1: we simply said, we'll create a tool that allows people
• 2:04
  Speaker 1: to dissect this sort of concentrated country in the e
• 2:09
  Speaker 1: M index from everything else. The et of trade under
• 2:12
  Speaker 1: the symbol x C e M is gained about six
• 2:15
  Speaker 1: and a half percent since the start of the year.
• 2:17
  Speaker 1: That's your Bloomberg ETF report. I'm Catherine Cowdery. You're listening
• 2:22
  Speaker 1: to Stock with Kathleen and Pim Box on Bloomberg Radio.
• 2:26
  Speaker 1: What's an investor to do? Central banks around the world,
• 2:31
  Speaker 1: they are unresolved in their efforts to help the global economy.
• 2:36
  Speaker 1: Interest rates remain low, and if you invested in the
• 2:40
  Speaker 1: SMP five at the beginning of the year, you've gained
• 2:44
  Speaker 1: just less than two percent. Here to tell us what
• 2:47
  Speaker 1: to do with our money? Matt Maylee, equity strategist at
• 2:51
  Speaker 1: Miller tay Back, joining us of course here at the
• 2:54
  Speaker 1: Boston Convention and Exhibition Center UH, prior to tonight's Greater
• 2:59
  Speaker 1: Boston Chamber Commerce Annual Meeting. Matt mainly, great to have
• 3:03
  Speaker 1: you with his thanks for coming in. Great to be here.
• 3:05
  Speaker 1: So what would you tell if you were going to
• 3:07
  Speaker 1: meet these UH? I think they're gonna be about sevent business,
• 3:12
  Speaker 1: government and civic leaders here at the Convention and Exhibition Center.
• 3:17
  Speaker 1: What would you tell them? Are the themes for investing today? Well,
• 3:23
  Speaker 1: probably the number one theme, of course, is is confusion.
• 3:26
  Speaker 1: I mean, I mean it's funny because a lot of
• 3:28
  Speaker 1: people are talking about how the UH people are confused
• 3:31
  Speaker 1: or worried about the election, UH and what what what
• 3:35
  Speaker 1: will have impact on the economy and the markets and
• 3:37
  Speaker 1: things like that. But I would say, actually that it's
• 3:39
  Speaker 1: the economy UH and and you know, struggle with wages
• 3:43
  Speaker 1: and things like that. Even though we've seen a mild
• 3:45
  Speaker 1: uptick recently, I don't know, people are still having a
• 3:47
  Speaker 1: tough time making ends meet. So I think that's what's
• 3:50
  Speaker 1: affected the election, rather than the election infecting uh the
• 3:53
  Speaker 1: economy and UH. Obviously the uncertainty and of course with
• 3:58
  Speaker 1: Donald Trump and things that does kick rate some UH
• 4:01
  Speaker 1: some concerns there as well. But we just don't have
• 4:04
  Speaker 1: the kind of growth that you would normally have in
• 4:06
  Speaker 1: the you know, this far into into an expansion, and
• 4:09
  Speaker 1: that's got people worried. And notwithstanding the rally today in stocks,
• 4:12
  Speaker 1: and notwithstanding the jump in commandity prices like swathing and
• 4:15
  Speaker 1: corn really shooting up right now, oil is steady over
• 4:18
  Speaker 1: forty four dollars a barrel, there is some concern that
• 4:22
  Speaker 1: if things haven't gotten a lot better now and we're
• 4:24
  Speaker 1: this long into recovery, that if we if we run
• 4:28
  Speaker 1: out of steam, what's left to push it up? Right?
• 4:32
  Speaker 1: The FED can't cut rates. The FED could do more
• 4:34
  Speaker 1: bar more bond buying, but at some point that seems
• 4:37
  Speaker 1: to have lost its steam. And everyone's saying, in fact,
• 4:39
  Speaker 1: every FED official love talked to him last month and
• 4:41
  Speaker 1: a half has said, fiscal policy, fiscal policy. Everyone has
• 4:44
  Speaker 1: to do something. And then if you're counting on Congress
• 4:46
  Speaker 1: and a new president to do something, well that's that
• 4:49
  Speaker 1: might be a tough bat exactly. And you know, as
• 4:51
  Speaker 1: Pim said that the markets only have two percent this year,
• 4:53
  Speaker 1: but you go back to Thanksgiving A two thousand, fifteen,
• 4:56
  Speaker 1: eighteen months ago. The markets done nothing since then. And
• 4:59
  Speaker 1: then it goes to the point that you've been saying
• 5:01
  Speaker 1: about about how you know people are you know, these
• 5:03
  Speaker 1: these programs that the central pranks have put in, especially
• 5:06
  Speaker 1: the B O J in the E c B I
• 5:08
  Speaker 1: haven't really helped helped as much as they used to.
• 5:12
  Speaker 1: Uh and uh. And you talk about people are are
• 5:15
  Speaker 1: are looking for something more and when you have the
• 5:18
  Speaker 1: I'm sorry, when you have like you said with Trump
• 5:20
  Speaker 1: and Congress, well, first of all, nothing's gonna happen until January,
• 5:23
  Speaker 1: because the new president is not gonna be in there
• 5:25
  Speaker 1: until January anyway. So you have a lot that adds
• 5:28
  Speaker 1: to the uncertainty. Even if they feel comfortable about who
• 5:30
  Speaker 1: was going to be the next president, that are they
• 5:32
  Speaker 1: really gonna be able to work with comngress in which
• 5:34
  Speaker 1: they haven't been able to do for quite a while.
• 5:35
  Speaker 1: So there's a lot of the uncertainty out there. And
• 5:37
  Speaker 1: let's keep got people, you know, sitting on their hands
• 5:39
  Speaker 1: a little bit more thany have in the past. All right,
• 5:41
  Speaker 1: So so Matt, you know, this idea of living in
• 5:44
  Speaker 1: a low yield environment wishing for high yields isn't gonna
• 5:48
  Speaker 1: make it. So so what do you do with your
• 5:51
  Speaker 1: money if you're planning to invest it for retirement, for
• 5:56
  Speaker 1: purposes not tied to daily moves in a particular stock
• 6:01
  Speaker 1: or stock market. What would you do with your money
• 6:03
  Speaker 1: right now? Well, one of the problems the problems because
• 6:06
  Speaker 1: six months ago, yeah, when I was asked the same question,
• 6:08
  Speaker 1: it was like, well, you know, some of these dividend
• 6:10
  Speaker 1: plays look really good. I mean, it's just it's a
• 6:12
  Speaker 1: it's a good play anyway in uncertain times, but their
• 6:15
  Speaker 1: yields were fine, and and of course we've seen what's
• 6:18
  Speaker 1: happened in the utility stocks and the consumer staples have
• 6:20
  Speaker 1: just had this unbelievable move. The problem is now they're
• 6:23
  Speaker 1: starting to get very expensive, and so to put new
• 6:25
  Speaker 1: money into that into that area. Of course, we heard
• 6:27
  Speaker 1: with Jeff Gunlock said last week about about the utility
• 6:30
  Speaker 1: sector being very, very overvalued, so that competes. What do
• 6:33
  Speaker 1: you think some profits if you have them and then
• 6:35
  Speaker 1: sit and wait for a better opportunity. I think so too,
• 6:38
  Speaker 1: But I also think you know, we hear a lot
• 6:39
  Speaker 1: more when you when you're these kind of sideways markets
• 6:41
  Speaker 1: has to be a stock pickers market. The one group
• 6:44
  Speaker 1: that has is defensive that hasn't done as well. It's
• 6:46
  Speaker 1: starting to do better finally, but hasn't done as well
• 6:48
  Speaker 1: as a defensive play in the last year or so.
• 6:50
  Speaker 1: Is is the healthcare stocks. Of course, the problem is,
• 6:54
  Speaker 1: as we've learned very much, you can't just go in
• 6:55
  Speaker 1: annual healthcare stock anymore. In nineteen seventy five nine, if
• 7:00
  Speaker 1: you could just kind of go to the group and
• 7:01
  Speaker 1: and you were fine. Now you have to be a
• 7:03
  Speaker 1: lot more careful, uh and go into you know, you
• 7:05
  Speaker 1: can go to some of the traditional names of the
• 7:07
  Speaker 1: big names of fires or market and things like that,
• 7:08
  Speaker 1: but even some of the takeovers and stuff. Um but
• 7:11
  Speaker 1: uh and then you know, well, you know, and then
• 7:14
  Speaker 1: reads and stuff like that with the commercial real estate
• 7:16
  Speaker 1: stuff going on here. But boy, I tell you, you know,
• 7:19
  Speaker 1: him just the most directed, just directing your view to
• 7:23
  Speaker 1: South Boston and to all of of really the seaport
• 7:28
  Speaker 1: area of Boston, which looks nothing like it did ten
• 7:30
  Speaker 1: years not not even I mean you see the credit
• 7:32
  Speaker 1: that some of that. You can't even see some of
• 7:33
  Speaker 1: the cranes because of the buildings in the way, but
• 7:35
  Speaker 1: the cranze are everywhere. Sometimes you wear that Maybe the
• 7:39
  Speaker 1: contraditions for people who feel like, oh, how co many
• 7:41
  Speaker 1: people talk about how bad things are. There's there's so
• 7:42
  Speaker 1: much construction in Boston, in Washington, d C. In Seattle, Washington,
• 7:46
  Speaker 1: in so many places, even at at a time when
• 7:49
  Speaker 1: people maybe are kind of having a tough time. But
• 7:51
  Speaker 1: I guess people still want to see movies and they
• 7:53
  Speaker 1: still want to go to theme park. So even if Disney,
• 7:56
  Speaker 1: for example, reporting today after Bell is not going to
• 7:58
  Speaker 1: be a high flyer, is that the kind of investment
• 8:01
  Speaker 1: that people are is that the best we can do
• 8:03
  Speaker 1: right now is that you kind of fall back on
• 8:05
  Speaker 1: because they're gonna grow. They're gonna do fine. Maybe no
• 8:08
  Speaker 1: big price appreciation, but that's one of the places. It's
• 8:11
  Speaker 1: funny again reverting back to something I said several years
• 8:14
  Speaker 1: ago and two thousand and nine when we're at the
• 8:16
  Speaker 1: bottom and people saying, is this the bottom is really
• 8:18
  Speaker 1: the bottom of the word even at the end of
• 8:19
  Speaker 1: the year, And I said, one stock that's gonna go up,
• 8:23
  Speaker 1: right because everybody understands it. You don't have to be
• 8:26
  Speaker 1: I mean, if you're a retail broker and you're talking
• 8:28
  Speaker 1: to mom and mom and dad out there, it's like
• 8:30
  Speaker 1: Apple computer because everybody sees what that's going. Now we've
• 8:34
  Speaker 1: seen a little bit of a change there. So I
• 8:35
  Speaker 1: think we go back to something I mean, just because
• 8:37
  Speaker 1: what we've seen in the stock is is that is
• 8:39
  Speaker 1: not to say that stock and it's a great company
• 8:41
  Speaker 1: and it may go lower, may go higher, but going
• 8:44
  Speaker 1: but that was a good reliable name in two thousand
• 8:46
  Speaker 1: and nine, two thousand and ten. Now you kind of
• 8:48
  Speaker 1: go back to some of those other names that you
• 8:49
  Speaker 1: just mentioned. Even though McDonald's got to stocks at all
• 8:51
  Speaker 1: time high, people said, I don't want to buy it
• 8:53
  Speaker 1: a stock at all time high, but there's a stock
• 8:55
  Speaker 1: stunder performed for a lot of years. So even though
• 8:57
  Speaker 1: it's an all time high, it's not at the kind
• 8:59
  Speaker 1: of it's not had the kind of run that some
• 9:02
  Speaker 1: of the you know, the high flyers, the thank stocks
• 9:04
  Speaker 1: that we saw last year. So I do see continue
• 9:07
  Speaker 1: to play on the defensive side, but you have to
• 9:08
  Speaker 1: be a little bit more careful than you was six
• 9:10
  Speaker 1: months ago. I was just looking at the tenure going
• 9:14
  Speaker 1: back to the beginning of the year. The yield there
• 9:16
  Speaker 1: on the ten year, I believe two and a quarter.
• 9:21
  Speaker 1: That's a that's a move that's gotta be painful for
• 9:27
  Speaker 1: I mean for people that have been saying stock stock stocks,
• 9:30
  Speaker 1: they have to come up against that, right. It's it's
• 9:34
  Speaker 1: it's such a difficult thing now, especially now when people
• 9:36
  Speaker 1: start one thing I think adds to the uncertainty. We
• 9:38
  Speaker 1: haven't seen it here, but you hear about these negative
• 9:40
  Speaker 1: interest rates. Nobody knows, you know, Warren Beffett was saying recently,
• 9:44
  Speaker 1: there's no books. I mean these books that go back
• 9:47
  Speaker 1: hundreds of years in some just several decades that have
• 9:49
  Speaker 1: been the bibles on on interest rates in the bomb market,
• 9:51
  Speaker 1: and now people are like, I don't know what in
• 9:53
  Speaker 1: the world it's gonna happen next, So that actually uncertainty.
• 9:56
  Speaker 1: And but people like you and then you also have
• 9:59
  Speaker 1: you know, the and part of the problem that got
• 10:02
  Speaker 1: up a tangent here, but part of the problem everybody
• 10:05
  Speaker 1: wants to blame the FED. And I'm kind of saying, well,
• 10:07
  Speaker 1: my blame to the FED is that they've actually enabled
• 10:10
  Speaker 1: Congress that they kept bailing things out. People are saying
• 10:13
  Speaker 1: we need fiscal policy. Well Congress keeps saying, well, if
• 10:15
  Speaker 1: the FED keeps billing out, I don't have to do anything,
• 10:18
  Speaker 1: all right, So, uh, now it's going to have to
• 10:20
  Speaker 1: step to the plate for hearing that all of not
• 10:22
  Speaker 1: just not just here in the United States, but all
• 10:24
  Speaker 1: over the world. They have to have the other, the
• 10:25
  Speaker 1: other leg to that. And even even Ben ver Naki
• 10:28
  Speaker 1: was saying years the two thousand and ten, he was saying,
• 10:30
  Speaker 1: we're just the stop gap to get us to you know,
• 10:32
  Speaker 1: what really drives the economy, and uh, but they never
• 10:36
  Speaker 1: really made them do that, and Congress has kind of
• 10:38
  Speaker 1: scated along and at some point, you know, that's why
• 10:40
  Speaker 1: we're having to throw the bums out. Kind of a
• 10:42
  Speaker 1: movement this year, you know, well, it's been an interesting
• 10:46
  Speaker 1: year so far, though you must admit absolutely absolutely well,
• 10:49
  Speaker 1: Matt Maylie, thank you so much for joining us, Coming
• 10:51
  Speaker 1: all the way over here to the Boston Convention an
• 10:54
  Speaker 1: exhibition center at tonight's creator of Boston Cheamber of Commerce
• 10:58
  Speaker 1: annual meeting. Of course not made these equity strategist at
• 11:01
  Speaker 1: Millary type back you're in Boston. Thank you so much,
• 11:03
  Speaker 1: Matt for joining us. I'm Kathleen Hayes, WELLOK, pim Fox
• 11:06
  Speaker 1: getting ready for the market clothes the movers and shakers,
• 11:08
  Speaker 1: coming up on taking stock on Bloomberg Radio. M