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

point two percent. Dow Jones Industrial Average up two hundred twenty one points, a gain of one point three percent. Gold little changed up sixty cents twelve sixty seventy ounce again there of less than point one percent, a three percent valley today for West Texas interviewed. The AC crude up a dollar twenty seven apparel to forty four dollars

and seventy two cents. I'm Charlie Palloton. That's a Bloomberg Business Flash, Charlie Pellot, thanks so much time now for the et F report brought you by Van eck Vector's e t F. Expect more from your muni's target tax exempt income by maturity and credit quality, all with low cost e t F s. Visit Vana dot Com slash Muni vanac access the opportunities for this sweet turned around

Catherine Cowtery. It's an unusual e t F that embraces most of the emerging markets except for one country, and it was named the best new international equity e t F of by e t F dot Com. Is the e D Shares e M Corps x China e t F. Here's Martin hooks To, a chief executive of Emerging Global Advisors. People recognized the e t F because of a big trend in emerging market investing, which is that portfolios are

becoming more and more dominated by China. Hookstra on how they came up with the idea for this e t F. If China the index, a lot of people will want to choose their China. In other words, they might want to hire an active manager they like, They might want to focus on certain sectors or industries, but at any rate, they don't want to necessarily buy the whole bucket. So we simply said, we'll create a tool that allows people to dissect this sort of concentrated country in the e

M index from everything else. The et of trade under the symbol x C e M is gained about six and a half percent since the start of the year. That's your Bloomberg ETF report. I'm Catherine Cowdery. You're listening to Stock with Kathleen and Pim Box on Bloomberg Radio. What's an investor to do? Central banks around the world, they are unresolved in their efforts to help the global economy. Interest rates remain low, and if you invested in the SMP five at the beginning of the year, you've gained

just less than two percent. Here to tell us what to do with our money? Matt Maylee, equity strategist at Miller tay Back, joining us of course here at the Boston Convention and Exhibition Center UH, prior to tonight's Greater Boston Chamber Commerce Annual Meeting. Matt mainly, great to have you with his thanks for coming in. Great to be here. So what would you tell if you were going to

meet these UH? I think they're gonna be about sevent business, government and civic leaders here at the Convention and Exhibition Center. What would you tell them? Are the themes for investing today? Well, probably the number one theme, of course, is is confusion. I mean, I mean it's funny because a lot of people are talking about how the UH people are confused or worried about the election, UH and what what what will have impact on the economy and the markets and

things like that. But I would say, actually that it's the economy UH and and you know, struggle with wages and things like that. Even though we've seen a mild uptick recently, I don't know, people are still having a tough time making ends meet. So I think that's what's affected the election, rather than the election infecting uh the economy and UH. Obviously the uncertainty and of course with Donald Trump and things that does kick rate some UH

some concerns there as well. But we just don't have the kind of growth that you would normally have in the you know, this far into into an expansion, and

that's got people worried. And notwithstanding the rally today in stocks, and notwithstanding the jump in commandity prices like swathing and corn really shooting up right now, oil is steady over forty four dollars a barrel, there is some concern that if things haven't gotten a lot better now and we're this long into recovery, that if we if we run out of steam, what's left to push it up? Right? The FED can't cut rates. The FED could do more bar more bond buying, but at some point that seems

to have lost its steam. And everyone's saying, in fact, every FED official love talked to him last month and a half has said, fiscal policy, fiscal policy. Everyone has to do something. And then if you're counting on Congress and a new president to do something, well that's that might be a tough bat exactly. And you know, as Pim said that the markets only have two percent this year, but you go back to Thanksgiving A two thousand, fifteen,

eighteen months ago. The markets done nothing since then. And then it goes to the point that you've been saying about about how you know people are you know, these these programs that the central pranks have put in, especially the B O J in the E c B I haven't really helped helped as much as they used to.

Uh and uh. And you talk about people are are are looking for something more and when you have the I'm sorry, when you have like you said with Trump and Congress, well, first of all, nothing's gonna happen until January, because the new president is not gonna be in there until January anyway. So you have a lot that adds

to the uncertainty. Even if they feel comfortable about who was going to be the next president, that are they really gonna be able to work with comngress in which they haven't been able to do for quite a while. So there's a lot of the uncertainty out there. And let's keep got people, you know, sitting on their hands a little bit more thany have in the past. All right, So so Matt, you know, this idea of living in a low yield environment wishing for high yields isn't gonna

make it. So so what do you do with your money if you're planning to invest it for retirement, for purposes not tied to daily moves in a particular stock or stock market. What would you do with your money right now? Well, one of the problems the problems because six months ago, yeah, when I was asked the same question, it was like, well, you know, some of these dividend

plays look really good. I mean, it's just it's a it's a good play anyway in uncertain times, but their yields were fine, and and of course we've seen what's happened in the utility stocks and the consumer staples have just had this unbelievable move. The problem is now they're starting to get very expensive, and so to put new money into that into that area. Of course, we heard with Jeff Gunlock said last week about about the utility

sector being very, very overvalued, so that competes. What do you think some profits if you have them and then sit and wait for a better opportunity. I think so too, But I also think you know, we hear a lot more when you when you're these kind of sideways markets has to be a stock pickers market. The one group that has is defensive that hasn't done as well. It's starting to do better finally, but hasn't done as well as a defensive play in the last year or so.

Is is the healthcare stocks. Of course, the problem is, as we've learned very much, you can't just go in annual healthcare stock anymore. In nineteen seventy five nine, if you could just kind of go to the group and and you were fine. Now you have to be a lot more careful, uh and go into you know, you can go to some of the traditional names of the big names of fires or market and things like that,

but even some of the takeovers and stuff. Um but uh and then you know, well, you know, and then reads and stuff like that with the commercial real estate stuff going on here. But boy, I tell you, you know, him just the most directed, just directing your view to South Boston and to all of of really the seaport area of Boston, which looks nothing like it did ten years not not even I mean you see the credit

that some of that. You can't even see some of the cranes because of the buildings in the way, but the cranze are everywhere. Sometimes you wear that Maybe the contraditions for people who feel like, oh, how co many people talk about how bad things are. There's there's so much construction in Boston, in Washington, d C. In Seattle, Washington, in so many places, even at at a time when people maybe are kind of having a tough time. But I guess people still want to see movies and they

still want to go to theme park. So even if Disney, for example, reporting today after Bell is not going to be a high flyer, is that the kind of investment that people are is that the best we can do right now is that you kind of fall back on because they're gonna grow. They're gonna do fine. Maybe no

big price appreciation, but that's one of the places. It's funny again reverting back to something I said several years ago and two thousand and nine when we're at the bottom and people saying, is this the bottom is really the bottom of the word even at the end of the year, And I said, one stock that's gonna go up, right because everybody understands it. You don't have to be I mean, if you're a retail broker and you're talking to mom and mom and dad out there, it's like

Apple computer because everybody sees what that's going. Now we've seen a little bit of a change there. So I think we go back to something I mean, just because what we've seen in the stock is is that is not to say that stock and it's a great company and it may go lower, may go higher, but going but that was a good reliable name in two thousand and nine, two thousand and ten. Now you kind of go back to some of those other names that you

just mentioned. Even though McDonald's got to stocks at all time high, people said, I don't want to buy it a stock at all time high, but there's a stock stunder performed for a lot of years. So even though it's an all time high, it's not at the kind of it's not had the kind of run that some of the you know, the high flyers, the thank stocks that we saw last year. So I do see continue to play on the defensive side, but you have to be a little bit more careful than you was six

months ago. I was just looking at the tenure going back to the beginning of the year. The yield there on the ten year, I believe two and a quarter. That's a that's a move that's gotta be painful for I mean for people that have been saying stock stock stocks, they have to come up against that, right. It's it's it's such a difficult thing now, especially now when people start one thing I think adds to the uncertainty. We haven't seen it here, but you hear about these negative

interest rates. Nobody knows, you know, Warren Beffett was saying recently, there's no books. I mean these books that go back hundreds of years in some just several decades that have been the bibles on on interest rates in the bomb market, and now people are like, I don't know what in the world it's gonna happen next, So that actually uncertainty. And but people like you and then you also have you know, the and part of the problem that got up a tangent here, but part of the problem everybody

wants to blame the FED. And I'm kind of saying, well, my blame to the FED is that they've actually enabled Congress that they kept bailing things out. People are saying we need fiscal policy. Well Congress keeps saying, well, if the FED keeps billing out, I don't have to do anything, all right, So, uh, now it's going to have to step to the plate for hearing that all of not just not just here in the United States, but all over the world. They have to have the other, the

other leg to that. And even even Ben ver Naki was saying years the two thousand and ten, he was saying, we're just the stop gap to get us to you know, what really drives the economy, and uh, but they never really made them do that, and Congress has kind of scated along and at some point, you know, that's why

we're having to throw the bums out. Kind of a movement this year, you know, well, it's been an interesting year so far, though you must admit absolutely absolutely well, Matt Maylie, thank you so much for joining us, Coming all the way over here to the Boston Convention an exhibition center at tonight's creator of Boston Cheamber of Commerce annual meeting. Of course not made these equity strategist at Millary type back you're in Boston. Thank you so much,

Matt for joining us. I'm Kathleen Hayes, WELLOK, pim Fox getting ready for the market clothes the movers and shakers, coming up on taking stock on Bloomberg Radio. M