Latest / Bloomberg Intelligence / Larry Rosenthal: Near Term Cautious, More Optimistic Q4 (Audio)

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Larry Rosenthal: Near Term Cautious, More Optimistic Q4 (Audio) · Bloomberg Intelligence

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  Speaker 1: Muni van Eck access the opportunities. Let's go now to
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  Speaker 1: Catherine Calgary for our et F report. Gold is up
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  Speaker 1: twenty one percent so far this year and it's trading
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  Speaker 1: at its highest in four weeks on growing uncertainty over
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  Speaker 1: whether Britain will exit the European Union and caution ahead
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  Speaker 1: of Central Bank meetings this week. The rally and gold
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  Speaker 1: Here's Joe Foster, a portfolio manager at the The stocks
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  Speaker 1: are performing very well. I mean our fund is up
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  Speaker 1: over this year, whereas the gold price is up somewhere
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  Speaker 1: around so they're performing very well, but we're just not
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  Speaker 1: saying the flows into the gold stocks. I think this
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  Speaker 1: rally caught the market off guard, and I think I
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  Speaker 1: think what investors are looking for is a pullback or
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  Speaker 1: some sort of a consolidation before they step into these equities.
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  Speaker 1: Foster is calling this a new bowl market for gold
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  Speaker 1: that's in its early stages. That's your Bloomberg etf Force.
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  Speaker 1: I'm Catherine Cowdery. You're listening to Taking Stock with Kathleen
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  Speaker 1: Hayes and Pim Fox on Bloomberg Radio. Yes, stocks are
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  Speaker 1: on track for their longest slide since February. And yes,
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  Speaker 1: more and more government bond yields are heading below zero today.
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  Speaker 1: The big news the German bund the tenure note going
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  Speaker 1: to a negative rate. So what do you do if
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  Speaker 1: you're managing more than a half billion dollars worth of
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  Speaker 1: money for investors? Let's ask Larry Rosenthal. He's president of
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  Speaker 1: Roseenthalt Wealth Management Group and he's joining us from Nassas,
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  Speaker 1: Virginia today. Larry, welcome, Thank you for having me. How
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  Speaker 1: are you today? Just great? Uh, You've been in the
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  Speaker 1: business for a long time. Did you ever think you'd
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  Speaker 1: see a day when eleven trillion dollars worth of government
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  Speaker 1: bonds around the world had negative yields. Definitely not UM.
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  Speaker 1: But that's sort of what's going on now, and it's
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  Speaker 1: all a movement to create stimulus and economic UH, you
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  Speaker 1: know movement the velocity of money UM. Savers are going
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  Speaker 1: to continue to be punished and risk takers are going
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  Speaker 1: to continue to be rewarded with volatility. But if the
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  Speaker 1: banks aren't offering any incentive to park your money there
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  Speaker 1: or government bonds to park your money there, then you're
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  Speaker 1: gonna have to employ the dollars elsewhere, laury money. If
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  Speaker 1: you could talk a little bit about employing those dollars elsewhere.
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  Speaker 1: Do you find that investors are pile into just a
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  Speaker 1: few names when it comes to stocks UM, your your yes,
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  Speaker 1: I think your your household names are getting the majority
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  Speaker 1: of that UH, And I do like different sectors UM
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  Speaker 1: from a from a short term perspective and a long
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  Speaker 1: term perspective. Let's take a look at the long term
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  Speaker 1: perspective first. For the long term standpoint, I like UH
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  Speaker 1: some some dividend payers, large cap UH stocks with good
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  Speaker 1: balance sheets in this environment, as well as the sectors
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  Speaker 1: of biotech and technology going forward. Short term, I'd be
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  Speaker 1: cautious a little bit with your less popular names and
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  Speaker 1: names that have had lots of run up recently. Um,
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  Speaker 1: you know, the market is seeming is seeming to stall
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  Speaker 1: a little bit, especially ahead of the Brexit conversation as
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  Speaker 1: well as the FED meetings UH this week. So little
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  Speaker 1: caution short term, but I think in the long term
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  Speaker 1: we're gonna be okay and push through this a little bit,
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  Speaker 1: provide the investors have the appropriate balanced portfolio that they
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  Speaker 1: need to accomplish their objectives and goals. And that's where
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  Speaker 1: some people get confused sometimes, is is looking at a
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  Speaker 1: short term investment versus you know, like a trade versus
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  Speaker 1: really investing to produce income for themselves in retirement or
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  Speaker 1: college funding or the case may be there. Yeah, and
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  Speaker 1: this is very short term in terms of these big
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  Speaker 1: picture questions. The FED meeting starts today, we get the
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  Speaker 1: decision tomorrow, breggsit vote June. We'll see even if they
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  Speaker 1: leave the you know, we'll see the volatility. We'll see
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  Speaker 1: what happens. You just mentioned though, for example, technology for
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  Speaker 1: the long term, can you give us if you can't
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  Speaker 1: give us a specific name that you are owning or recommending, Uh,
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  Speaker 1: could you give us an example of the kind of
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  Speaker 1: tech company you're talking about, because there's you know, if
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  Speaker 1: chip makers are tech, then Intel is very different from Microsoft,
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  Speaker 1: is pretty different from Facebook, I would agree. And when
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  Speaker 1: I talk tech, the first thing I think of is
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  Speaker 1: how certain technology companies are changing the way you and
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  Speaker 1: I as individuals and businesses send and receive information. Uh,
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  Speaker 1: not only domestically, but as well as around the world.
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  Speaker 1: And the access to data, the efficiency of data is
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  Speaker 1: the areas that I'm really really talking about. We we like, uh,
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  Speaker 1: the E T F space there to buy the whole
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  Speaker 1: basket versus individual companies. We just think it's a rising
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  Speaker 1: tide that's going to continue for several years down the
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  Speaker 1: road as people continue to increase their technology. I mean,
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  Speaker 1: just think about this. Just just imagine ten fifteen years
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  Speaker 1: ago going to a car dealership today and back then
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  Speaker 1: and buying a car that's that comes pre fitted with WiFi.
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  Speaker 1: Back then, we would have never understood that at all.
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  Speaker 1: But yet now that's happening, and it's going to continue
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  Speaker 1: to happen. Technology is going to continue to change the
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  Speaker 1: way we send and receive information. That's going to help
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  Speaker 1: businesses out it's going to help people out in the
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  Speaker 1: healthcare sector as well, so it's gonna be well rounded.
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  Speaker 1: I just want to pick up on something having to
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  Speaker 1: do with healthcare because at the end of the Affordable
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  Speaker 1: Care Acts third open enrollment period, total enrollment was about
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  Speaker 1: twelve point seven million individuals. This shows that enrollments are
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  Speaker 1: falling in each successive period. Does that affect your call
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  Speaker 1: on healthcare stocks? Not really, UM, the Affordable Care Act
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  Speaker 1: is basically designed to get people ensured, get them into
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  Speaker 1: the program. That's one scenario there that's different than what
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  Speaker 1: I'm talking about. I'm talking about biotech, UM, advanced pharmaceuticals,
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  Speaker 1: Alzheimer's research, cancer, hip replacement, knee replacement. That space is
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  Speaker 1: designed to improve quality of life and extend quality of life.
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  Speaker 1: So we're very specific when we go into the healthcare
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  Speaker 1: space using some ets like that. I'd like to come
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  Speaker 1: back to technology et s. Are you saying, then, if
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  Speaker 1: you're looking at how information is transferred? Are you looking
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  Speaker 1: at ets that hold uh cloud? Uh? You know, enterprise
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  Speaker 1: kind of service companies? Uh? What kind? Could you just
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  Speaker 1: be a little more specific there? Again, tech is pretty broad.
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  Speaker 1: Would you do something more more specialized or are you
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  Speaker 1: just saying buy something it owns, you know, lots and
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  Speaker 1: lots of different kinds of technology companies. Well that's a
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  Speaker 1: great question. Let me give you the answer from a
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  Speaker 1: financial planning perspective, if I may. We work with clients
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  Speaker 1: that are close to are already retired, so we're building
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  Speaker 1: and designing portfolios to accomplish their objectives at this point
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  Speaker 1: in life and down the road. So if we're if
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  Speaker 1: we're liking the tech space, we may put them into
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  Speaker 1: an e t F that buys the basket of technology. However,
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  Speaker 1: from on a case by case basis, we may then
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  Speaker 1: go find a name if the stock looks to be
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  Speaker 1: an appropriate buy at the particular time. But we just
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  Speaker 1: like the entire space, along with the biotech space. Long term,
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  Speaker 1: viewing it from the rising tide is going to lift
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  Speaker 1: the whole all the boats in the harbor. All right.
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  Speaker 1: I noticed that you've been speaking about exchange traded funds.
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  Speaker 1: Do you specialize justin exchange traded funds or would you
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  Speaker 1: be willing to put money to work in individual stocks?
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  Speaker 1: We do both. We have active and passive mutual funds
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  Speaker 1: as well as ets and individual stocks inside of our
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  Speaker 1: portfolios for our clients depending on what their objectives are
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  Speaker 1: and what we see in the marketplace. You know, it's
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  Speaker 1: it's pretty easy to to uh buy some SMP five
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  Speaker 1: stocks and e t F passive investment like that, uh
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  Speaker 1: in the SMP five space. But when you start looking
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  Speaker 1: abroad at uh uh intermatt International emerging small company growth
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  Speaker 1: stocks there, you might want to employee active management in
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  Speaker 1: a mutual fund versus something that's passive. So the further
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  Speaker 1: away it is from the center of the dartboard, the
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  Speaker 1: more we would lean towards active management. How about income,
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  Speaker 1: If the ball market is kind of crazy right now,
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  Speaker 1: how do you get income dive it mpairs it is,
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  Speaker 1: I mean, we we look at it a few different ways.
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  Speaker 1: UM dividend payers. We also like the middle of the
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  Speaker 1: curve as far as the bond market goes right now,
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  Speaker 1: UM publicly traded reats if you can put in some
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  Speaker 1: trailing stop losses just to limit volatility, and they're yielding
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  Speaker 1: very attractive numbers as well, So we do sort of
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  Speaker 1: a mixture between the two or three. They're depending on
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  Speaker 1: the client's objectives as well. So you know, we are
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  Speaker 1: definitely in a yield starved environment, so we need to
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  Speaker 1: find quality bonds when it comes to that, and a
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  Speaker 1: lot of bond ladders are being you know employed now
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  Speaker 1: in the investment world. Uh, you know, as far as
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  Speaker 1: all that goes for people. Thank you very much for
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  Speaker 1: spending time with us. Larry Rosenthal is the president of
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  Speaker 1: Rosenthal Wealth Management Group, helping to manage more than six
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  Speaker 1: hundred million dollars of client assets. Speaking bullish about healthcare,
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  Speaker 1: specifically biotech as well as technology stocks, We're going to
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  Speaker 1: take you through to the clothes next right here on
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  Speaker 1: taking stock. I'm pim Fox, my co host Kathleen Hayes,
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  Speaker 1: and this is Bloomberg Radio. Yeah,