What Are Investors Focused on?

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July 9 (Bloomberg) -- Hightower's Pagnato-Karp Group Founder Paul Pagnato and Adviser Investments Chairman and CEO Dan Wiener discuss investment ideas with Pimm Fox on Bloomberg Television's "Taking Stock" (Source: Bloomberg)

If you look at what is taking place, they are not overvalued.

If you look at what is taking place in so many different areas, whether it is robotics or our health care system, all the cyber security issues that are occurring.

How long do you wait for an investment to actually turn out before you say we went down a cul-de-sac and we have to stop.

It is when the fundamentals change.

It is when they change to the entered three -- the industry sector.

There is a whole bunch of circumstances that go into that equation.

In a world where people are looking for increased yields, people do not get income.

They had to meet their financial requirements.

What kinds of criteria do you suggest people use?

One of the things we talk a lot about his risk.

You have to look at the history of different asset classes and say what is the risk ingrained in this particular asset classes.

They are trying to put more asset classes into these funds.

We do not go to the store and spend yields.

We spent income.

We spent cash.

From the tax perspective i would rather spend capital gains.

It is treated more favorably.


I would rather something i spend a long-term gain on been coming off a fund.

They are trying to generate interest from the investing public into buying something that they say will give you a higher yields.

Of course it will give you a higher yield.

It will also give you a lot higher risk.

If you're going to look at extent come or technology, you sell when the story changes.

When do you sell?

We invest with some of the best managers in the business.

We are relying on guys at wellington.

We are relying on them to make a decision when to buy and when to sell a particular stock.

What we are doing is what kind of risk are you willing to take?

How much income?

What is the total return?

If you have a long-term perspective we will be looking much more in generating long- term gains of them yard to generate current income.

We can generate current income off of capital gains just as easily.

If you have gains, take some of those capital gains on your bonds.


We think this is a very good time to do that.

We do know bond prices have appreciated significantly.

We do know where rate are and are bottoming out.

You think 2.5 on the tenure, the .5 on the 30 year?

Some of the institutions came out and said the estimates are from 3.2% to 4% on the treasury for 2014. we agree with that.

If the treasury moves 1%, it is a 9.3% loss for every one percent move.

The 30 year treasury yield is a 20% loss.

That means you have to make back at least 25%. that is absolutely right.

What do you think?

There has been a bought of advice to shore up duration.

I would agree with that completely.

You cannot just say you're going to buy treasuries.

You have to look at what you are buying.

What about municipal bonds?

They have taken a big hit but the yields a very nice.

They are looking for some taxable missable bonds that you can buy.

Institutions cannot touch them.

The individual investor can make some money.

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


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