CNBC Market Edge

" The Dow lower out of the -- 41 points to guests with us now to -- Why might small and it. Other likes large gap on Williams CEO prestige wealth management bills made CEO of CIO of seed capital -- Bill good morning Barbara bureau. Which are you -- big gap for those small immediate wealth."

" What would -- we run a large cap value funds so what we feel like large cap. We like that the weakness in the dollar going to be incredibly good for the large drug companies over the next three to five years. As the emerging market nations. Load up brand new hospitals -- brain health clinic with with product we we want to provide that to. You're into spreading weakness in the dollar for three to five years. You you don't need anymore you you've had so much you've taken care of us for three to five years -- what's already happened. Right what's your view."

" Yeah all right now with the economy recovering and continue he only feels minutes small cap should continue to do well. Yeah publicly back in the bond markets you have a situation and analog and any activity picking up management should bode very well for those areas."

" This guy about what. Mark I don't really did agree there. But that there's kind of what what you call that -- the the dash for trash I think Bill Miller calls it and again. It which is is natural at this point the cycle. For those of us that are longer term -- we expect her to be probably another six months of this first year -- coming off the bottom. And I think I think small midcap couple do find. We just don't want to have to changeover. To what you want on the next three to five years were not that you know that's not our our game but so."

" Yeah really not dash for trash because he can -- high quality mid and small cap stocks also. We're not talking about bottom feeding at this point which -- high quality small knit cap stocks valuing growth in both areas right up."

" They'll let me ask you let them. One thing I think you both agree on but bill you have the numbers of actually where Americans are putting their money right now regular people. And it would lead you -- a huge red flag on a bond bubble right."

" Wealth that I hate to use the term bubble. For many years we just tried to avoid the sectors they got too popular and and and try to concentrate on the sectors that are unpopular. And when you get the best stock market increase in 67 years and a seven month time period. And you look backward and realize it over that time period people were putting twenty dollars and to bond mutual funds for every dollar they're put an equity funds. And they were actually net liquidator of large cap equity funds. It it just makes me really excited double what we own because you know that the bull market in large cap US equity is not going to die on net liquidations by the public."

" And why wouldn't. What about your take care you're also worried about government bonds but again you're going to tomorrow on corporates and I guess to your point earlier it's not all trash. You talent defines what's behind good quality. Quote unquote junk -- low rated bonds -- quality."

" Like you look at the breakdown of the other fun you know how much money's in double a single -- we're -- a role -- is still between -- portfolio. Real high quality thief in the duration of four years five years not being paid to go long term. It pays to have a progress allocation. And still have bonds within a portfolio the -- you have with a dash inequities. Is that -- you let people take too much risk and the first direction a run on the market again. As we've seen happen a couple of times so it's important you maintain your out."

" A huge trust the ratings agencies though we keep having this now referring to that that's their ranking in every they've been. You know when it comes a lot of the securitized stuff completely discredited in -- Yeah we're relying on."

" Without question but you know we're also relying on. -- the companies mentioned in the financials which you are doing now you know like companies have cut flaws and their balance sheet so. Better than they were a year or two ago and embedded anywhere five years ago -- remember."

" That Cisco way and Disney and these folks the people a strong balance sheets are buying other companies. That they're they're taking a -- also you mentioned on the on the rating agencies. After the E. Coli scare Jack in the Box as the safest place to eat for five years. But at the same thing is true with the rating agencies they're doing exactly the opposite what they're doing before. They're probably be in ridiculously over scrutinized right now and and that they have to appear to be tough guys now probably to an extreme. So if anything you should take them as being with more pessimistic than they should be right now they've got. Overly credible reports coming out right now. Our gentlemen thanks very much -- that would -- him bills need to."