Tim Moore, Cabot Money Management, on Investing

Continued. -- -- -- -- -- you've been talking right here on the WRKO. Radio network. And you're getting some great suggestions here for Father's Day 603 says you should buy him a CD of his favorite songs my sons did that. And I think of them every time I play on its own eyes and my dad is 77 and you know going lights and Blondie really. The blond my dad would slap me across the -- that I made in the city new equipment there. With his favorite songs. -- is that says that doesn't apply. Aren't with the opening bell rang three -- -- how we do you know we're not doing too bad today Barry is -- see a lot of green on the boards this morning and I CBS and I see only oil excuse me is up fourteen cents Dow's up 74. Points NASDAQ up sixty get the ten year US treasury sitting at one point five now and that's down slightly. Gold is up seven dollars and twenty cents to sixteen point six are a very good well our guest is Tim Moore he's from Cabot money management. He's a portfolio manager at -- Andy joins us today to talk about the condition of the markets Tim welcome to the show -- -- It didn't last night as watch and Larry Kudlow and he told everybody to sit and cash until after the Greek elections you know wait until this cash today. -- -- those that are gaining almost as much is that they had money -- put up. No I mean yeah we take a long term view on stock and the Greek elections are important but. And it's been another blocking tool and a reminder to investors -- volatility that exists and yet. Elections seem like if I turn out well this time compared to last month. You know for investors we want -- a lot to work. And it should average cost an apple back. War mostly investor right now I'm. You know we know there's volatility in and it went away for about five months but definitely back in the gives you a chance to pick up some really great high quality companies -- But not that simple acts. All right so the stock -- feel there's some opportunities how about the bond market I was reading some reports by -- -- the president any company rob lots and he he was of the -- perception believe it may correct me if I'm wrong I think he may have been insinuating in his recent article. That the bond market is in a bubble any evidence to that effect. Well amateurs make stuck on I mean you know we're not gonna hope at a table like stock here but we we do have to. And compare that and it treasury detector treasury -- -- have a one point 6% -- effort to yield on SP 502%. But during bought back the company's other two or 3% and earnings deal but you know that's an above market will be proved to be about all. Not not any time and to be a few quarters or a year -- that maybe law there. The Fed could it have been speculating rates and people want to sleep well -- got to be part treasuries. Which is the point it's pretty interesting that. In an average current edition and all only has 45% of the portfolio. In -- nowadays compared to 70% twelve years ago. Yeah let's hope that again it's a twelve years ago when you institutions he talked in like mutual funds and pension funds and things like yeah okay. You give us -- number twelve years ago what percentage of endowments and in institutional investors were invested in the stock market. In the largest mutual -- they were about 50% best on average -- 45% today about you know I don't want to mislead you don't think it's ever gonna go back to the perceptive analysts. But the market mania and yet our baby -- were -- America out nowadays on the retirement. And health costs. -- have 45% to and we do think people become more comfortable. With a healthy level if it's 45%. Is too low and 7% to high. -- where where is your comfort. If you don't -- seen it in the mid fifties and you're to out think that's possible if the fear index goes away -- things like. The European debt crisis get partially resolved there some clarity there and US -- -- not a disaster really immediate spin that and -- congress. Actually take actions that have an airplane and take it if people come back pretty quickly to stock. You know people are maybe I after the election. We here's here's my eight. Supposition if you will and poke holes and if that it's wrong if you if you think it's wrong but. You know I don't think there's going to be much money to be made in the stock market between certainly now in the elections might get a little bit of a pop after the election because there's usually some optimism. That occurs over IEU Lou whether either party whoever wins is gonna be some optimism that follows that. But then you have this whole tax reform issue hanging over our head. And I've got I I feel that that's going to be a battle that begins. In. February march of 2013. And probably goes on for I don't know 456 months. If that occurred if if if I'm right about that I've got to believe there's not much money being made in stocks not only for the rest of this year but next yours well. Yeah I I agree with Soledad you know we're up timetable about stocks now I mean in hammered -- where possible and but it's your point you know we don't think there's going to be a lot of more upside -- you know until the election. Well we do think you know given how bad Congress's ban last year. Point bankers and ask about it and that's an election rolled out yet they do have a chance to. Fixed the fiscal less complicated a year ago without -- -- -- mean that we phenomenal they do that again December. Had to give it uses stock market in a tax rates. On dividends being apple they aren't just from treasury is that that's pretty hopeful they can do that and they'll keep people aren't that it and at the bottom line as the world still elaborated about like stacked the government. Government while there's been as -- austerity measure dot com that's why we have ruckus. With a pig increase. At either Everest or any US citizens you've ever quite nicely and -- spending and occasionally they'd say political epidemic and -- a few months later. That's right we're good at spending -- right yeah. And thanks for joining us your appreciate your time. That's to that the more.