There's Some Complacency in the Markets: Sundt

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Sept. 13 (Bloomberg) -- Altegris Founder, President and CEO Jon Sundt discusses the investment environment with Deirdre Bolton on Bloomberg Television's "Money Moves." (Source: Bloomberg)

There is can -- some complacency in the market.

Markets have rallied almost 150% . everyone on the street seems to be bullish in equities.

2008 reminded us it is important to diversify.

What advice are you giving to your clients now?

We believe you should participate in the market.

The market has 20 of room to go but if you look at intermarket correlations between stocks, stocks were very correlated a year or two ago and now they are less correlated.

There are some good strategies investors can use to preserve.

A classic example is equity long short.

You have built certain funds which are offering strategies but that any retail, any small investor can it -- participate in.

Rex this was not accessible to the general public and these managers have demonstrated the ability to go long and short during multiple market cycles so we think right now it would be a good time to take some of your assets off the table that are really long only equities and find hedged long strategies.

It just makes sense.

Spreads are tough but there is a lot of deal flow and activist investors.

How is this going to change the longshore performance?

The longshore managers generally are bottom-up stock pickers with a six to 12 month view.

The shorter-term traders usually do not belong in that space for the longer-term are suited for equities.

X what about fixed income?

The job report of a week or two ago showed us that picture is not clear and the fed has some work to do.

The big question is how aggressively will they taper and you have potential headwinds in congress, you can see a circus around the debt ceiling.

There is plenty of risk in the marketplace right now.

You mentioned yellin and summers.

Who do you think investors want in that role, do you talk about that?

They want yellin.

They have a history of -- she has a history of being able to stand up to people.

The investor ace wants yelling.

What are you seeing in this business that is surprising you or aching you rethink the way that you see the investing environment?

In the hedge fund communities a lot have not delivered so as an investor you have to look at what are you getting any hedge fund universe.

A lot of managers are having a hard time justifying 1.5 and 20 in the hedge fund space so we are seeing some managers looking at providing access to their programs in mutual funds and that is very exciting.

If the point is they have not really performed that well as hedge funds, what will they do in a mutual fund that they have not been able to do in a hedge fund?

You want to look at the ones that are delivering so it is about manager selection and due diligence.

This text has been automatically generated. It may not be 100% accurate.

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