ALMOST 215 POINTS AT ITS LOW.
JOINING US NOW IS CHIEF
INVESTMENT OFFICER CHRISTOPHER
ZOOK.
THANK YOU FOR JOINING US.
YOUR REACTION TO WHAT'S TAKING
PLACE AS MARKETS REACT TO THE
UNCERTAINTY BETWEEN THE U.S. AND
IRAN?
SHOULD WE BE TRADING ON THIS OR
IS THIS SOMETHING THAT INVESTORS
WANT TO LOOK BEYOND?
>> WELL, GOOD MORNING AND HAPPY
NEW YEAR AND WELCOME TO THE COLD
WAR OF THE 21st CENTURY.
I THINK THAT INVESTORS HAVE TO
TAKE THIS SERIOUSLY.
I DO NOT THINK THIS IS SOMETHING
THAT IS GOING TO DRAMATICALLY
AFFECT EARNINGS IN THE NEAR TERM
BUT AT THE SAME TIME, I THINK
THAT WE'RE ENTERING INTO A NEW
LEVEL OF RISK THAT THE MARKETS
DEFINITELY WERE NOT THINKING
ABOUT A WEEK AGO.
AND SO AS A RESULT, I THINK
INVESTORS NEED TO FOLLOW THE
ADDAGE OF SELL WHEN YOU CAN, NOT
WHEN YOU HAVE TO AND MAKE SURE
YOU'RE POSITIONED PROPERLY FOR
AN ENVIRONMENT THAT HAS A LOT
MORE RISK THAN IT DID A COUPLE
WEEKS AGO.
MARIA: LOOK AT WHAT'S GOING ON
WITH TRADE.
THE RISK HAS ALMOST BEEN TAG
TAKEN AWAY THERE.
USMCA COULD SOON BE A DONE DEAL,
AS SOON AS THIS WEEK BY THE WAY.
PETER NAVARRO LAID OUT THE
POTENTIAL TIMELINE WITH ME
YESTERDAY ON SUNDAY MORNING
FUTURES.
LISTEN TO THIS.
WHAT ARE YOUR EXPECTATIONS IN
TERMS OF USMCA?
>> WE'RE GOING TO GET THAT
PASSED AS EARLY AS FRIDAY OR
MONDAY.
HERE'S HOW IT WORKS OUT.
MY GOOD FRIEND SENATOR GRASSLEY
IS GOING TO MARK THIS BILL UP ON
TUESDAY IN THE FINANCE
COMMITTEE.
ONCE IT'S MARKED UP, LEADER
McCONNELL WILL HAVE THE
OPPORTUNITY TO PUT IT ON THE
FLOOR.
AND THE BEAUTY, MARIA, OF
FAST-TRACK LEGISLATION IT'S A
MAXIMUM OF 20 HOURS ONCE IT GOES
TO THE FLOOR FOR THE VOTE.
WE'VE GOT A LARGE BIPARTISAN
SUPPORT IN THE SENATE, SO
POSSIBLY THIS WEEK WE COULD
ACTUALLY DO SOME GREAT PEOPLE'S
BUSINESS.
MARIA: WHAT YOU'RE SAYING IS
YOU THINK THIS COULD HEAD TO THE
PRESIDENT'S DESK WITHIN A WEEK?
>> IT ABSOLUTELY COULD.
MARIA: CHRISTOPHER, WHAT ABOUT
THAT?
YOU'VE GOT USMCA HEADING TO THE
PRESIDENT'S DESK POTENTIALLY
WITHIN A WEEK AND THE CHINA
DEAL, PETER NAVARRO SAID THAT
THE BEIJING DELEGATION IS COMING
THE WEEK OF JANUARY 13th TO
SIGN PHASE ONE ON JANUARY 15th
JANUARY 15th.
>> I THINK ALL OF THAT IS
EXTREMELY GOOD NEWS AND DON'T
GET ME WRONG, THERE'S A LOT TO
LIKE ABOUT WHAT'S GOING ON IN
THE ECONOMY.
THERE'S A LOT TO LIKE ABOUT
WHAT'S HAPPENING IN THE
FUNDAMENTALS OF BUSINESSES RIGHT
NOW.
THAT'S THE REASON THE MARKET HAS
DONE WHAT IT'S DONE OVER THE
LAST 12, 15 MONTHS, MULTIPLE
YEARS BECAUSE WE'VE HAD GOOD
NEWS.
THE REALITY IS THAT I THINK THE
MAJORITY OF THE TRADE DEAL
GETTING DONE HAS BEEN PRICED IN
AND I THINK WE'VE SEEN THAT OVER
THE LAST 30 DAYS.
NOW THE MARKET BEING A
FORWARD-LOOKING ANIMAL HAS TO
RESET AND SAY WHAT DOES THE
ELECTION LOOK LIKE, WHAT DOES
THE CONFRONTATION WITH IRAN HAVE
THE POTENTIAL TO DO TO IMPACT
THE ECONOMY.
IT'S GOING TO BE A REAL
DIFFERENT ENVIRONMENT THAN WE
SAW IN '19.
>> CHRISTOPHER, MITCH
ROSCHELLE.
GOOD MORNING.
ANY SECTORS IN PARTICULAR THAT
YOU LIKE BECAUSE YOU HAVE
HEIGHTENED GEOPOLITICAL RISK,
ARE THERE ANY PLACES THAT ARE
PERHAPS SAFER THAN OTHERS FOR
THE SHORT TERM?
>> WE HAVE ACTUALLY BEEN
INVOLVED IN THE GOLD MARKETS AND
THE SILVER MARKETS RECENTLY OF.
WE'VE ALSO BEEN BUILDING
POSITIONS IN THE ENERGY SPACE.
NOT BECAUSE WE SAW SOMETHING
COMING IN IRAN, OBVIOUSLY NOBODY
REALLY SAW THAT P COMING, BUT
WHAT WE DID IS WE SAW VALUATIONS
THAT A WERE GETTING VERY
INEXPENSIVE, PARTICULARLY IN THE
MINERALS SPACE WHERE YOU GET A
TREMENDOUS AMOUNT OF YIELD WHILE
YOU WAIT POTENTIALLY FOR PRICES
TO IMPROVE.
WE'RE GETTING SOME OF THAT
PRICING IMPROVEMENT.
WE FEEL LIKE WE'VE GOT A GOOD
YIELD WITH A CALL OPTION ON
HIGHER PRICES, WHICH NOW BECAUSE
OF WHAT'S GOING ON WITH IRAN
COULD ACTUALLY GIVE US A LITTLE
BIT MORE TAIL WIND THAN HE WE
THOUGHT WE HAD A COUPLE WEEKS
AGO.
DAGEN: GOLD AND SILVER AS HARD
ASSETS, THEY DON'T PRODUCE
INCOME.
>> CORRECT.
AND THAT'S ONE OF THE BIGGEST
CHALLENGES.
THE GOLD AND SILVER IS A TRADING
VEHICLE, IT'S A WAY TO POSITION
STRICTLY AS A PORTFOLIO HEDGE OR
TO TAKE ADVANTAGE OF WEAKNESS
AND TO SELL INTO STRENGTH LIKE
WE'VE SEEN THE LAST COUPLE
WEEKS.
ENERGY IS GOING TO BE MUCH MORE
OF A SECULAR TYPE OPPORTUNITY OR
MUCH MORE OF A 12 TO 18 MONTH
TYPE OPPORTUNITY.
MARIA: BEFORE YOU GO, PETER HE
NAVARRO SAID WE'LL SEE GROWTH
CLOSER TO 3% IN 2020 THAN 2%.
HE'S LOOKING AT 3%.
YOU HAVE EARNINGS BEGINNING NEXT
WEEK.
WOULD YOU BUY STOCK GOING INTO
ALL OF THIS?
>> NO, WHICH BE A SELLER OF -- I
WOULD BE A SELLER OF STOCKS
TODAY.
HAVE YOU TO LOOK AT IT FROM THE
PERSPECTIVE OF I WOULDN'T GO OUT
AND SELL EVERYTHING I HAVE BUT I
WOULD TRIM ON BALANCE AND I
WOULD BE A BETTER SELL E NOT A