Keeping Your Money Safe

" Markets are opening no lower this morning as we told you they would. There right now down -- about 66 point 8214. But as everyone tries to reset for the second half then we'll decide if the price didn't scenario of recoverable come to fruition or not. And we want to get some ideas on where to invest that McKay joins us now president CIO with broadly. Yeah Metropolis also witnessed president and CEO of CoreStates capital advisors who got both of you with us Doug let's start with EO. When we talk about pulling back a little better we talk about re pricing may -- pricing and more weakness of the second half and currently the market expects. What sort of -- dropping your view would that imply mean are we going back to. The mark's bottom."

" Now I don't think we'll see the march bottom at all as a matter fact he had the Lehman Brothers. New York CEO on this morning in and you think back in September. Period the S&P got about 1200. Minutes at 900 today so."

" It got its lowest 600. More about halfway in between I still think that the biased you the end of the year remains the upside."

" I think you could have a ten to fifteen for percent correction I think the overall trend -- remain positive."

" And I wanted to ask you on a few sectors and source Scott hasn't a couple of specifics he wants to focus in on as well minus health care. Units trade there but again it is it based on your saying health care reform will not little follower."

" what's interesting is you know we we're tend to focus right now more in the cyclical areas of the market but what I've noticed lately in the last month or so is -- health -- started to perform a little bit better perhaps that could be some what the defensive trade coming back at Staples and found -- do."

" But I think with the health care. I noticed that the stock's gonna do a little bit better when people perceive that. Maybe Obama's administration is not going to get all they want the same thing happened in 94 as you know the Clinton administration and health care. Went much more private in terms of the approaching this anything can happen here bill Doug doesn't think we're going back to the march -- is what are your thoughts on that."

" I don't think we're gonna go anywhere near the march was I think they're in place. Markets especially after a dramatic events have a tendency to spike up. And usually after the first chapter at -- 101213%. Correction is not. Out of the ordinary other you know after the crash of 87 we did not -- 10% correction for the next 3000 points coming from 1600. This is -- pretty. This a pretty critical week right I mean everybody's talking about how it's light on data -- we get earnings. Every -- critical in this business c'mon you know and and you have a lot of bad news out there and have a lot of good news out there and corporate America is being clouded by the the nine point 5% unemployment yet that's bad news but it also shows the influence on how quick companies can just. Payrolls balance sheets and I think that bodes well for return to profitability in recovery in the second half Doug let me ask you -- another -- deal like that being technology and I'm sure you're focused on those pretty decent looking balance sheets right a lot of cast. Little debt."

" Well that that's certainly. A help bolster it but it's got two things one -- again you want to be focused right now cyclical elements of the economy tech has some sick locality to it. They'll do better -- economy recovers but it also like being stolen innovative area way to combat iphones or. Some of the new stuff coming out of Google is still got that -- longer term secular growth there and and yet it's our biggest weighting in portfolio right now."

" What -- to you stand on fixed income particularly if we do have a little bit weakness in the second half maybe not massive but some. And -- DC somebody's government programs expanded as as Don hill's arrest was referring to may be long term rates come down. Or some might say even with the increase in delinquencies junk bonds -- the best place in the world to see where you both stand. On time fell."

" I hate treasury anything I think it's a wherever bought the opportunities -- low on the wrist as high. You can make an argument made for some corporate but I think there's so many more attractive. Strategies and marketplaces to be other than them fixed anything."

" If they fix anything I don't know about yet."

" I would agree with that I would avoid treasuries. Next place I would go if you need fixed income exposure would be the corporates."

" It's not great you can get out Cisco Systems. Corporate it 5% so again nothing great but certainly better than treasuries and some idea of anarchy -- maybe in better shape in the US government. Some gold and they have cash last I can't exactly. And got a lot of access them Goldman Sachs had them bonds out there at 7% I think they've. And -- themselves to be survivor but I think you're still going to get your biggest return on equity."

" Okay bill -- UK Treasury's so how are you allocated right now. Well right now we're at 55%. -- and we is a long short strategy in every category. We have 8% and managed futures 8% and currencies. And I think you know cabinet and tactical -- of all the major markets is really the way to survive would probably be. A fair amount of volatility for the next 234 years and -- your allocations -- what."

" Well it really depends on what the objective of the client is that right now would definitely would be biased more towards equities and you know just having the cash that you might need to survive the next next six months."

" You buying on any dips."

" Yes it would be a buyer on the dips as you mentioned earlier this 890s kind of a crucial territory and you know I think what's ahead of us now are earning some of the interest and to see whether or not those earnings will."

" Continue to justify less bad is -- that would move the market for door or something even better than that."

" Thanks very much about Doug McKay tells -- a less."