Watch Out for Treasury Bubble: Top Strategist
President Obama on Monday sternly warned Wall Streetagainst returning to reckless and unchecked behavior that had threatened the nation with a second Great Depression. So how are investors faring one year after the financial meltdown? CNBC contributor Michael Yoshikami, president and chief investment strategist at YCMNET Advisors and Thomas Meyer, CEO and chairman of Meyer Capital Group Wealth Management shared their market insights.
“[Obama’s] speech is really to position regulatory reform and to spread the blame across the [financial] industry as well as Main Street to in order to try to set the table for new regulatory reform,” Yoshikami told CNBC at the Schwab Impact Conference. “It’s facing tremendous opposition from industry leaders and the response from the audience was not exactly rousing if you watched the speech.”
Yoshikami said despite the market gains since the March lows, he still sees more room for growth.
“There’s tremendous risk and money—there is billions and trillions sitting in cash and sitting in money market making nothing right now,” he said. “When that money moves back into fixed income markets, you’re going to get more yield and get capital appreciation as well.”
In the meantime, Meyer said investors ought to watch out for the treasury bubble that has been building up in the last few months.
“Two hundred billion has now gone into bond funds,” he said. “We’ve had five years worth of growth in three-quarters of one year to talk about capital appreciation. Now is the time to take some chips off the table.”
- Treasurys Are the Next Bubble: Rogers
- Economic Recovery 'Sharper Than People Think': Sonders
- Where to Invest Right Now: Strategists
No immediate information was available for Yoshikami or Meyer.
CNBC's Companies in the News:
Bank of America
BofA's Merrill Lynch Settlement Rejected by Court
Yahoo Sells Entire Stake in China's Alibaba.com
Sprint 'Unaware' of Deutsche Telekom Takeover Talks