Analysis and Discussion with Rod Smyth of RiverFront Investment Group

Transcript:
s&p 00 s at a four month high. are we at the eginning f a new rally? hen asked this f rod smith rom iverfront investment group. reat to ee you gain. hanks, bette. ou think you are not onvinced we are n a rally. ooked at he numbers. rom arch 10 low, and s&p 2%, dow 1% - why are you convinced? are n a ally, no doubt out that. he question hether it is a ally in the ontext f a owntrend or the eginning f a new bull market. nd i hink he undamental onsideration hat will termine hat is whether or not we are in a two- arter economic lowdown, in hich ase the lows were in march s you are uggesting and we are oing igher, r the conomy is ore than a fourth uarter, six uarter, lowdown, in hich ase uspect that really ill fail somewhere round ear nd 440, 450, and hen we ill come back own and umping round and a rading ange tween he lows arch and 4 40/1450 evel. emember the rimary rend but tart 200-day oving average is still own, we have een as relic of to that evel. hy do i think that? hy do you think we will e in -6 uarter -- f you look of the circumstances. e have a onsumer that pretty tapped ut in terms savings and in terms f their bility to orrow ecause we' in a credit crunch. have the housing arket learly in the worst ecliner since the 1930' ut hose ogether and you have a consumer - and add or dollar gasoline nd you have a consumer that ill struggle ust sit back to normal. those of he consumer, goes the economy. - as opposed to he onsumer. early here is an offset. hat e have tax cuts. r the next our o six quarters we will see slow rowth and it will eep arkets contained. want to get your pinion this ecause arlier uest aid tay out inancials completely. ou said you can buy hem, ut ust hrough preferred shares. hat do you mean? onderful. hink there is real pportunity in the financial ector o get way rom he stocks and into preferred. f you look at the anks, they are desperately hort capital. they ave een riding of so much. hey need et apital atios back up. - there have been ating off so much. hey are aying ates for referred tock, most of hich qualifies or dividend ax relief. if you an get ver % from a llection f the financial eferred, think bout hat to he returns axable nvestor in this kind of nvironment nd if they ave to come out of ssued ore as a referred shareholder ou are in ood shape. when arket is paying those ates it is a good ime o pick up on hat. nteresting erspective.