Financial Sense Newshour: Experts

Jim welcomes back Eoin Treacy, Global Strategist at Fullermoney, a division of Stockcube Research Ltd. in London. Eoin is favorable toward US markets, noting contracting P/E’s and rising dividend yields on US stocks. He believes the US has an advantage over other countries, and sees US multinational stocks leveraged to the global economy as the best place to invest. Bond investors are reluctant to change their strategy, and Eoin doesn’t see them moving into stocks until they start losing money in bonds.

Jim is pleased to welcome back Brian Pretti CFA, Managing Editor at ContraryInvestor.com. Brian says to brace yourself for the flight of global capital coming into the US later this year. For now, all roads lead to the dollar. Brian believes the first wave will come from capital fleeing both Europe and Asia. Brian and Jim also discuss the new Japanese monetary policy and how this will unleash a flood of cheap money on the globe. This will encourage sophisticated investors to borrow in Japan, invest in the US, and pay back the loan in cheaper Yen, increasing the return substantially.

Jim welcomes back Dave Lauer, a Market Structure and Technology Architecture Consultant. His most recent work includes public policy with Better Markets and technology architecture with IEX, a new equity market. Previously, he worked as a senior quantitative analyst at Allston Trading and Citadel Investment Group. Dave believes the cops (regulators) are not on the beat, and this puts individual investors at a distinct disadvantage. He sees HFT traders as manipulators of the market without fear of punishment. Dave says the “uptick rule” must be reinstated to protect the individual investor, but the Wall Street lobbying machine convinces both regulators and legislators that it isn’t necessary. With money and influence on their side, the Robo Traders are becoming the Robber Barons of the 21^st century.

Jim welcomes back Kurt Wulff CFA, Independent Energy Analyst at McDep LLC. Kurt and Jim discuss energy equities today and Kurt sees Exxon as the Rodney Dangerfield of oil stocks, not getting the respect it deserves. He sees XOM as a must-own anchor of any energy portfolio. Kurt also discusses other energy equities, such as Encana and Suncor. He notes that Encana is a potential takeover target, perhaps by the Chinese. Energy stocks outside the US have been down lately, and Kurt sees many value opportunities in the energy sector.