SUMMIT: Investor complacency a risk to markets- Stifel CEO
Tuesday, June 17, 2014 - 04:35
June 17 - Stifel Financial CEO Ron Kruszewski says low volatility amid market highs could be a sign for concern, but sees opportunity to grow his business in all asset classes, including fixed income
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-- financial CEO -- -- he's my guest today he joins me directly after that 2014 Reuters global wealth management some welcome good to see you here. Thank you should during this summit that things are concerned about is some complacency. Regarding the market what do you mean by. The market is that in inflation adjusted all time highs yet the vaccine which is a measure of volatility is almost historical -- Which spells complacency. And you know historically I think that complacency. Is we as a -- more of the downside mark on the upside though. Complacency you know equals routes many times. Clients are underestimating. -- but it service. Well again as measured by the next I would suggest that the -- that there aren't there there's a lot of routes geo political -- End. And risks maybe. You know interest rates -- X number of things that that Claude. Question about -- -- and I just think it's more complacency and so my instincts are when complacency. Like. The wrist and a higher then than just like. When. And you know runaway. Optimism. Off sometimes. What negative. Potentially for you is just monitoring -- today what happens in Washington DC what's the biggest impact right now. You think coming out of the nation's capital to endure. Industry and business. -- look financial. However in my opinion it's the pendulum swung too far and that the level of regulation cost regulation. Is beginning to become a burden on industry and then ultimately. On consumers and the cost. Finance I think that that. Is it concern. Couple that all although macro basis I think that in Washington you have. Gridlock in an inability really get anything done. And with economic growth in sub par. I think there's some things that need to be done and I will point out what I believe as comprehensive tax reform. The tax system needs to be looked at from the corporate level to the individual level. If that has done I think that well prosper economic growth. And that needs to get going. We'll get down on her. Things that you can control within your industry having to deals regulations or discussions of changes that do affect the bottom line. You have made acquisitions in the past would you continue to do so you -- industry consolidating because of things like rising. I became CEO in 1990. These and weeks. The industry consolidating Dan because purgatory change which was elimination Glass-Steagall. And throughout the last seventeen years we have seen change that have led to consolidation. But for us has spelled opportunity. Yeah opportunities that we have executed through whiny mergers every one of them has been a good deal everyone creative. And our company's benefits because I look forward as I've -- in the past is prologue for us the opportunity. I'm bullish on America so to speak and I do believe that we well. We'll get our financial house and hours a country -- don't now good times for financial services are companies investing for the. But are there some areas you avoid investing in for instance fixed income trading might not be the most profitable business going forward are there certain areas that you would just completely avoid or. -- our look at as something that we'll never good. Yeah and I have it fixed incomes taken quite a beating here it's a huge market I believe -- fixed income I would invest and have invested and will continue to invest in fixed and come. Some of the things that your reading about are more short term in nature. That's -- interest rates are going much slower but fixed income is a great business we will invest in fixed income. -- -- has bamboo will be asked and anything that makes us more relevant to the marketplace and our clients and that's something that we can do on finances sound basis we'll do it. But we are Groenenberg continue to grow -- -- thanks so much thank you very much. I'm Rhonda -- this -- Reuters.
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