QUARTER.
GROWING AT A RATE OF 3.2%.
TURNING BACK TO MARKETS.
WALL STREET CELEBRATING TAX
REFORM AFTER BETTING BIG ON IT
ALL YEAR LONG.
THE NASDAQ AND S & P ALL UP.
MY MARKET GUEST, RYAN PAYNE.
LET'S LOOK BACK AT THE YEAR THAT
WAS.
IT WASN'T JUST ALL ANTICIPATION
OF WHAT IS NOW A TAX REFORM THAT
IS DONE.
THERE IS A LOT MORE GOING ON IN
THE U.S. AND THE MARKET.
>> WHEN YOU THINK BACK TO THE
BEGINNING OF THE YEAR.
EVERY ANALYST ON WALL STREET
SAID SINGLE DIGIT RETURNS.
THE S & P UP OVER 20%.
THE DOW UP NEAR 30%.
THE NASDAQ CLOSE TO 35%.
IT'S BEEN A FANTASTIC YEAR.
DAGEN: WHAT IS DRIVING IT IN
YOUR OPINION.
AND CAN THOSE TAIL WINDS
CONTINUE INTO 2018?
>> YOU HAVE LOW INFLATION.
LOW EMPLOYMENT.
MARKET TO EARNINGS KEPT COMING
IN BETTER THAN EXPECTED QUARTER
AFTER QUARTER.
THAT'S JUST IN THE U.S.
DAGEN: DO VALUATIONS IN THE
UNITED STATES, EARLY IN THE WEEK
YOU HAD NOT JUST THE NASDAQ AND
DOW.
S & P 500, THAT FLOWS TO
EARNINGS.
DO YOU SEE THAT MUCH OF A
BENEFIT IN THE MARKET?
>> I THINK THERE IS A
THE TAX BILL WAS PASSED AND IT
DIDN'T HAVE A HUGE EFFECT ON THE
MARKET.
IT'S ABOUT EARNINGS.
THE OPTIMISM WILL CARRY THROUGH.
BUT IF YOU ARE POSITIONING YOUR
PORTFOLIO YOU HAVE TO THINK
GLOBALLY.
DAGEN: IF YOU BET ON SOME OF THE
GIANT CORPORATIONS IN THE UNITED
STATES, YOU ARE BETTING ON THE
GLOBE.
UP WITH THE NASDAQ AND THE S & P
500 IN 2017 IN TERMS OF OVERALL
PERFORMANCE.
>> IF YOU LOOK AT THE EMERGING
MARKETS, THEY OUTPERFORMED U.S.
MARKETS THIS YEAR.
WE HAVE BEEN IN AN 8-YEAR BULL
INNING.
THE EMERGING MARKETS VALUATIONS
ARE A LOT LOWER.
GROWTH RATES ARE HIGHER.
2018 YOU HAVE TO START THINKING
ABOUT THE REST OF THE WORLD.
>> WOULD YOU UNDERWEIGHT THE
U.S. AND OVERWEIGHT THE MARKETS?
>> I WOULD SAY MOST OF
PORTFOLIOS ARE UNDERWEIGHTED IN
THE FOREIGN MARKETS.
THE AVERAGE PORTFOLIO IS 70-80%
YOU GET A 40% TO 50% WHAT HE-IN-
WHAT HE-IN.
HE -- -- 5% WEIGH-IN.
WE HAVE THE INFAMOUS FACEBOOK,
AMAZON, GOOGLE, MICROSOFT WITHIN
ALL THOSE COMPANIES TRADING AT
IF YOU LOOK AT YOUR PORTFOLIO
YOU PROBABLY OWN THOSE STOCKS
OUTRIGHT.
AND FUNDS AS WELL.
SO IT'S PROBABLY GETTING
OVERRATED.
DAGEN: WHAT LOOKS UNDER VALUED?
MY YEARS OF COVERING MARKETS AND
BUSINESS AND FINANCE.
YOU HAVE TO BE CAREFUL BECAUSE
THEY ARE CHEAP FOR A REASON.
DOES ANYTHING LOOK REASONABLE IN
THE U.S. INDUSTRY-WISE?
>> I THINK THE PIPELINE IS A
GREAT PLACE TO PUT MONEY.
THINK ABOUT WHEN YOU GO ON THE
HIGHWAY AND PAY A TOLL.
IT'S THE SAME THING WITH THE
PIPELINE INFRASTRUCTURE.
THEY MAKE MONEY ON TRANSPORTING
OIL AND GAS.
IF YOU LOOK AT DOMESTIC AND
GLOBAL DEMAND, IT PAYS SOME
PRETTY NICE DIVIDENDS.
I THINK THAT'S A GOOD LONG-TERM
BUY.
345 OF THE DEVELOPED COUNTRIES
ALL GROWING AT THE SAME TIME IN
2017, THE FIRST TIME IN A DECADE
THAT THAT HAPPENED.
WHAT ABOUT COMMODITIES?
A BE STRONG GLOBAL ECONOMY OF
SMEENGS JONG DESMANLDS
GENERALLY.
IT SHOULD SPARTANBURG MORE
GLOBAL DEMAND.
BUT I'M BULLISH ON COMMODITIES.