I knew it was midwestern area.
Are we really going to learn much news today in terms of the timing of the paper and what the fed is planning to do?
I do not think so.
The notes, his courage, i think the market is kind of in a proxy states.
They believe is going to pay for it, but i think that what is going to occur is they will do it and it will cause volatility in the market.
Every time you see kiwi won, qe2, equity sell-off, the market -- even though it is only $3.50 trillion being removed, it is liquid liquidity and they do not like it.
I expect more volatility.
Is a psychological thing?
It is similar to 94, when you saw the surprise move in rates.
You are seeing that now, people are going to the eventuality on the upside getting beat up.
The 10-year interest rate will have implications around the economy and the market.
People should focus on a bumpier ride through the year.
Sounds like it will take quite a while, even though the fed is pulling back stimulus because economic data is getting better.
You look at prices having difficulties, the rise in rates, revive in housing but not going to add great guns.
There will be earnings and a geopolitical events being focused on.
They will start focusing on rising interest rates.
To me this means volatility and an event driven market with expectations, right now, too high, people are complacent and not prepared for the fed to pull the trigger.
Sounds like you are making the case from an investment point of view for dividends.
I was going to say.
The difference is that a lot of investors think that utilities are in telekom.
We want growth, not yield, growing them simultaneously.
The tech sector looks very interesting right now.
102% of their earnings are paid off.
We do not expect a lot of growth of there.
Interestingly would say that, i am looking at the names you're talking about.
Qualcomm, m apple, with the exception of intel, right around the 10-year yields right now.
What convinces you that we are going to see more cash?
Especially in apple, which has pretty much made a big dramatic move, but it is not clear if they will make further.
They just increase their dividend about one month ago.
You are looking at a situation where the iphone in the asian market, low fault -- low-cost iphone will be interesting.
If we ever get it.
But it is one of those things that has been beaten up, down 20% year to date, no expectations.
You asked why we like technology, i will give you a specific example.
Qualcomm increased dividends 40% in march.
When you increase the dividend that much with earnings power to pay the dividend, going forward, that is the site.
40% increases with dramatic moves from technology companies, one would think that increases in the future would be smaller.
I do not think so, something like intel, qualcomm, same situation.
A specific rate of growing, a big pop may go down a bit but they are increasing every single year.
That is what we want from the investment side.
Dividend growth with earnings left.
Here is a sign of the apocalypse.
Managers pounding the table on technology companies.
In the late 1990's? companies like sysco, morphing from growth to value.
Sort of old.
If you look at chicken technology, these companies are telling clients -- i have to give you more than just price appreciation alone.
I think that long term if you look at a more people need income and price with technology being the best sectors.
What about others?
We are low, but not friendly with telecom utilities base.
Surprisingly some of the financials look interesting.
Regional u.s. banks, frost, i do not like the big money-center banks.
You will see capital charges and some of the health-care names.
J&j, merck, companies with consistent cash flow earnings.
Growth is what i keep coming back to.
Names like utilities, telecoms, they have the ability to keep pace.
They will struggle for earnings and dividends.
Procter and gamble, dividend growth, lastly it is the catalyst for that stock, having to do something to unlock value in earnings on august 1. who knows.
We covered a lot of ground.
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