CMG AdvisorCentral

Tactical investing news, views and resources for financial advisors

Blumenthal’s Best Bets on TheStreet

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CMG Capital Management Group CEO Steve Blumenthal appeared on TheStreet this week.  Steve discussed his best ideas for investors to consider when the next buying opportunity presents, which he sees in the next 12-18 months.

In his weekly commentary, On My Radar, Steve has addressed in depth excessive market valuations and low probable forward returns, the global debt crisis, deleveraging, low GDP and negative corporate earnings.  Nonetheless, Steve says that recessions and market corrections create terrific buying opportunities.

Please enjoy the video below.  Click here for the transcript of the interview.

Blumenthal’s Total Portfolio Strategy on theStreet

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Steve Blumenthal, CEO, CMG Capital Management Group Inc. on theStreetSteve Blumenthal, CEO of CMG Capital Management Group, stopped by the studios of theStreet in New York to talk with Gregg Greenberg about some of the ETFs in the CMG portfolio. See the segment here: Four Hot ETFs With Strong Relative Momentum.

Excerpts:

Gold has been shining so far in 2016, rising 16% compared to a flat S&P 500. Blumenthal does not expect gold to lose its luster anytime soon. “We view gold as a hedge against the irresponsibility of central banks,” said Blumenthal, adding that it is in a “cyclical bull trend.” Blumenthal has a 5% gold weighting within CMG’s total portfolio solution, owning the Van Eck Merck Gold ETF (OUNZ) . He said he could take that position up to 10% considering the precious metal’s momentum.

He is also bullish on the SPDR Dow Jones REIT ETF (RWR) , which is up 3% so far this year thanks in large part to increasingly dovish talk by the Federal Reserve. Blumenthal admits that a more hawkish sounding Fed could hit REIT prices. For the time being, however, he said the sector has momentum.

Said Blumenthal:

Valuations on the market, looking at median P/E is 22.6 at the end of March. That’s a higher valuation level than where we were in 2007, at the top of the last financial crisis. Stocks are richly priced. We’ve reduced our equity exposure and we hedge equities.

Blumenthal on theStreet – Tracking High Yield

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CMG Capital Management Group CEO Steve Blumenthal on theStreet about high yield bondsCMG Capital Management Group CEO Steve Blumenthal stopped by theStreet in New York today to chat with Gregg Greenberg about the coming opportunity in high yield bonds. Catch the (3.25 min) segment here: How to Profit From the Coming Washout in High Yield Bond ETFs.   Summary of the segment:
A default wave will soon be hitting high yield bonds and investors better be prepared for it, says Steve Blumenthal, CEO of CMG Capital. Still, Blumenthal says there is a bright side to the coming washout in junk bonds. ‘The good news is that the selloff will create one of the greatest buying opportunities of a lifetime in the not too distant future. Remember the 20% yields on high yield bonds in 2008? My two cents is that the coming opportunity will be even better,’ says Blumenthal. Blumenthal says tactical trend analysis enables investors to identify the primary movements in high yield bonds. His strategy is to stay invested during the up trending cycles and shorten maturities when the trend turns down. In other words, buy the iShares iBoxx High Yield Corporate Bond ETF (HYG) or the SPDR Barclays High Yield Bond ETF (JNK) when trends are turning up.