GO
Loading...

Watch Out for Treasury Bubble: Top Strategist

Monday, 14 Sep 2009 | 2:23 PM ET

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.

Putting Your Money to Work
Thomas Meyer, of Meyer Capital Group Wealth Management; Michael Yoshikami, of YCMNET Advisors; and Bill Gurtin, of Gurtin Fixed Income, tell CNBC's Tyler Mathisen where they're putting their money to work right now.

“[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.”

______________________________

Disclosure:

No immediate information was available for Yoshikami or Meyer.

______________________________
CNBC Slideshows:

______________________________
CNBC's Companies in the News:

Bank of America

BofA's Merrill Lynch Settlement Rejected by Court

Berkshire Hathaway

Warren Buffett Is Overrated? Futures Trader Thinks So

Yahoo

Yahoo Sells Entire Stake in China's Alibaba.com

Sprint

Sprint 'Unaware' of Deutsche Telekom Takeover Talks

______________________________

Disclaimer

  Price   Change %Change
BAC
---
BRK.A
---
S
---
YHOO
---

Featured