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Obama's "no ground troops"in Iraq calmed markets- Kenny

Friday, June 13, 2014 - 03:32

June 13 - Clearpool Group CEO Peter Kenny says President Obama's decision not to send ground troops to Iraq was a positive for the markets. Bobbi Rebell reports.

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Lots of jitters about how the escalating tensions in Iraq could impact global markets Peter Kenny CEO and co chairman of the careful group. Joins us to give us his perspective thanks for being here thanks for. Our President Obama says they are reviewing the situation but for now they are not providing ground troops to provide any comfort to investors. Actually it does because ground troops would mean something entirely different in terms of the risk paradigm associated with the Middle East. Not having the need for ground troops at least in terms of this assessment it's positive in that true. It appears as though the situation on ground can be managed in some way that does not put you know American forces in harm's way and it doesn't escalate if so right out of the market seems to be taking everything in stride well of this is this is good for the markets all the indexes are positive on the things. And we had had two sessions previously that we're not so I mean this is a clear indication that the markets are welcoming this news. What sectors could be and -- Well as with any military conflict the defense sector is always an area that is most responsive to this sort of headline risk. And of course energy and we've seen energies and the principal driver for any sort of -- in terms of investing over the last 36 hours. This various its sharp markup in the price of petroleum. Is since settled down today and that. Is it not a mistake that they came come very much came very much on the heels of president policies not sending in troops though. Oil has settled down today after spiking up yesterday and that's a result of the fact that there is some common narrative. The fact that USO has become such oil producer and that's all enormous enormous this since 2009. US open action is. Increased by 57%. We're importing less oil. Over the last twelve months -- we had been almost fifteen years. And there is all sorts of data that speaks -- -- important strategic and otherwise for having a more itself. Fulfilling prophecy when it comes to delivering our own oil domestically growing our own oil and from what that all means you politically it's very significant. We're record highs right now yes what could tip the balance are -- risk factors things that you're looking for. But well well first of all these. The economic data though we got a little bit this morning it was a disappointing in terms of consumer confidence in the such. It's not terribly negative that data that we're getting that isn't meeting consensus isn't that far off. The general consensus from an economic standpoint is that the economy continues to do better and that that will show up in earnings. It over the next 123 quarters. Investors play this market well it's a very very difficult market to play if you're looking to trade trading lines again very sharply so. This is not a trader's market. At the end of the day investors need to be looking good solid fundamentals stocks that pay dividends stocks that have. Very good visibility in the future good guidance. And stocks that tend to be less exposed the geopolitical risks that we're talking about in terms of Sarah can you elaborate on that. Well let's look at sectors like I think homebuilding and some some areas of the country continue outperformed. Regional banking has no exposure geopolitical risk you have to have. A lot of confidence that domestic energy production this fits right into the theme towards us. Thanks so much. Thanks very much for having. Our thanks to Peter any of the careful where -- got -- felt this is writers.

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Obama's "no ground troops"in Iraq calmed markets- Kenny

Friday, June 13, 2014 - 03:32