Wall Street broker Willis: "Here is my strategy"
"Sell bonds now – buy stocks you know on sale", Ben Willis of Albert Fried Company recommends. "That is the way you want your money to work for you."
Recent economic data has been slippery due to icy temperatures, this week has more important statistics on the agenda. Ben Willis acknowledges the winter weather’s impact but in the long-term considers it no more than a cheap excuse: "The view of those who are buying stocks is that it’s the polar vortex. Some areas of the US have seen more frigid weather than in the last 100 years. And that has had an effect. I know that from personal anecdotal evidence. That’s the excuse right now. Whether or not that will be proven when the weather wears off is yet to be seen." Willis’ general views on the market are bullish. However, he knows that a correction is very much necessary: "I’m a stock guy. And I’m a long-term bull right now for this market, which is a position that has changed in the last few years. I believe it’s necessary to see some new lows for us to be higher at the end of year. That’s my conundrum." The floor expert advises investors to handle their money with confidence und sell bonds now into the relative strength and buy stocks they know when they go on sale: "Asset managers who are getting paid to manage money are being forced to buy everything. If you still control your money you have the opportunity to be selective and be a stock-picker, rather than a stock market-picker. Asset managers are buying everything and waiting for the market to tell them they’re wrong. They are buying stocks, bonds and commodities. Somebody has got to be wrong but that’s yet to be seen." For more details including Willis view on the Fed’s upcoming Beige Book as well as the importance of global central banks tune into "Inside Wall Street" with Manuel Koch.
Looking for the German version of the interview? Click here.
Redaktion: Manuel Koch