LET US BRING IN NANCY, WHERE ARE YOU FINDING THOSE NAMES? > > IN THE SAME SECTORS I HAVE BEEN TALKING ABOUT ALL ALONG. THERE IS ALWAYS UTILITIES, LIKE I SAID, ANYTHING THAT HAS PRICING POWER THAT MOST LIKELY PEOPLE WILL NOT GIVE UP BUYING. IF YOU GET YOUR ELECTRIC BILL AND IT IS UP 35 PERCENT, YOU ARE LIKELY NOT GOING TO CUT OFF YOUR ELECTRICITY. YOU WILL CONTINUE TO PAY IT AND HOPE IT DOES NOT CONTINUE TO GO UP AS HIGH IN THE FUTURE. SHERY: DO YOU SEE OPPORTUNITIES OUTSIDE OF THE UNITED STATES? > > WE ARE STAYING FAR AWAY FROM OR LIMITING EXPOSURE TO OUTSIDE OF THE U.S. BECAUSE THE DOLLAR IS SO STRONG. AS COMPANIES RECOVER AND THEY DO WELL, THERE IS A HUGE HURDLE TO OVERCOME WITH THE CURRENCY EXCHANGE IN THE FIRST PLACE. WE ARE HOLDING BACK A LITTLE BIT ON OUR OF THE U.S.. — ON OUTSIDE OF THE U.S.. HEIDI: ARE YOU KEEPING OR ADVISING CLIENTS TO KEEP SOME POWDER DRY? > > IT DEPENDS. WE ARE IN AN ADVISORY FIRM AND WE ARE IN THE BUSINESS OF MEETING LONG-TERM GOALS FOR CLIENTS. THERE IS NO REASON TO BE IN A CRAZY MARKET LIKE THIS WHERE YOU HAVE EXTREME VOLATILITY FROM ONE DAY TO THE NEXT. FOR LONGER-TERM GOALS, I THINK WE ARE IN A GREAT ENVIRONMENT TO ENTER AND THERE IS A LOT OF CONTROVERSY ABOUT WHETHER WE COULD HIT BOTTOM OR NOT. IT DOES NOT MATTER BECAUSE IT HAS BEEN A VERY GOOD ENVIRONMENT FOR DEPLOYING CASH IN THE PAST SIX MONTHS. EVENTUALLY THIS IS GOING TO BE A BLIP ON A GRAPH. WE ARE LOOKING BACK AT IT. HEIDI: WE ARE SEEING MAJOR INSTITUTIONAL INVESTORS INCLUDING SINGAPORE ‘ S GIP SAYING THAT THERE IS IMPORTANT IN THE 60-40 PORTFOLIO. WHERE ARE YOU SITTING ON THAT? > > THE 60-40 PHENOMENON IS TOO COOKIE-CUTTER. IT SHOULD BE PERSONALIZED TO EACH PERSON AND WHAT THEIR OBJECTIVES ARE OR APPETITE FOR RISK IS. WHAT THEIR GOALS ARE AND THE TIMEFRAME FOR THE GOALS. AN AVERAGE OF 60-40 DOES NOT WORK FOR EVERYBODY. YOU HAVE TO REALLY ANALYZE EACH PERSON ‘ S SITUATION. WHAT IS MADE UP OF THIS 60-40, THERE IS SO MUCH BEHIND THAT. THE 40% COULD BE LONG-DURATION, SHORT DURATION, INTERMEDIATE DURATION. THERE IS MUCH VARIATION AND IT IS NOT AN EASY ANSWER TO SAY IT SHOULD ALL BE 60-40 AND EVERYTHING WILL BE FINE. HEIDI: GIVEN THE GLOBAL RECESSIONARY RISK, YOU LET TO COMMODITIES PLAY. HOW DO YOU GET THAT EXPOSURE? > > WE HAVE BEEN BUYING INDICES FOR THE MOST PART. I THINK IT IS HARD TO FOCUS ON JUST ENERGY OR JUST ONE OF THE METALS. GO WITH A WHOLE INDEX. IT HAS DONE EXTREMELY WELL. THERE IS A BIT MORE OF AN UPSIDE. WE ARE GETTING TO THE POINT WHERE WE MAY JUST BE TAKING THE MONEY OFF OF THE TABLE SHORTLY.
