Where to Invest Today

" Let's get the portfolio rising no matter what's moving -- managing partner at Harris financial group and Tom -- is president of global trends investment. Tom I'll start with you you were bullish precisely at the right time and you remain so I'm very interested to know where you stand now as we start to hit these markers. Well it's a great day today listen if I look back on ten years ago when the first time the Dow in about 10000. By the full having hair. Where I want wearing that -- and contemporary or current fact the biggest. Those were looking for a correction in September and October. Missed out and there's still four trillion dollars on the sidelines hopefully by going about 10000 again. Those investors that need a little bit of a psychological push. We'll start moving because hopefully the next ten years will be much better than the last."

" It's not do is a favorite next time it did hits a milestone bring an Afro wig and put it up yeah. To see -- that I would I don't know vanguard. I'll get let me go over to Jamie if I can because Jamie you are right on the money to what's happening today you suggest he -- your nose before everything -- that financial should be looked at very carefully look at all the financials today. They're doing terrific is this sustainable."

" I think it is first of all the next ten years now it's 10010 years from album to be in the same predicament is Tom -- does it to you -- you -- ten years. Have a have a flat market in ten years -- it's bad for your hair. But otherwise don't you think about these large cap financial JPMorgan Bank of America and others. They unbelievable earnings power of these companies have take for example JPMorgan all the conference call today. The samples talking about loan loss reserves being reduced down to two billion dollars at some point in the future. The loan loss reserves were actually going to turn over and -- going to be reserving they're actually going to be lowering those reserves which is going to be enormous for earnings power in the future. In addition investment banking revenues were also you know normalizing things to offset some of this consumer problem they have in the short run. So I think if you are looking for if you if you think about what for the where the prices of these securities are particularly the low in my -- America and and the non part banks like. JPMorgan they still have a long way to go I mean we're looking at probably. Dividends to be replaced on the stocks and there's so many things you can go right in the future but I think that those -- thought -- can."

" Okay now Tom what let me not throw. Ice cold water on the party here but I want to be cautious for our -- investors because I think it's important that we talk about the head winds that are out there what worries you right now. Well. Inflation and you know I think what we have to do is investors have to consider. Commodities as an asset class and really happened this point that happens but today with the ease of investing in ATF sick cover all areas of commodities. It's very easy to protect against the declining dollar. Potential inflation. And with the boom that was seen in emerging markets as a huge demand for gold oil and a whole variety of commodities. "

" Well of course the key is Jamie how how you divide. Your portfolio to protective that is. You've put 40% of it in these in these safe bets they're assuming that inflation is Cutler is going to come in or do you miss out another bets by putting so much in."

" Well if you're talking about allocation I think for the most part investors have been hiding out in investment grade and high yield bonds for the majority of the year. You can see it it -- in the mutual funds flow data. You know record inflows into investment grade and high yield bond funds. And I think that you know that party is over so I think people -- or. Particularly retail investors were overweight. Those type of sectors and they need to come back to be equal -- to get out of those bond funds they've been hiding out and go more back to the equities that they came from. Utilities Telecom others that have similar yields we can get you know get you back in the equity market into walked back in."

" So I couldn't I couldn't agree I couldn't agree more Jamie and again. Moving away from fixed income we're going to see higher rates on the road."

" But you've got to start shifting equity positions more overseas and you have to pick your spots in. Making sure you have a greater percentage in these commodities Jamie Cox Tom -- Tom next time you're here we want to show what your hair looked like -- 10001 time around. Why you're doing good thank you so much at this."