that is kristina hooper, invesco chief global market strategist. let's check in on the first word news. here's viviana hurtado. viviana: in iran, protests over a shot down jet have turned violent. teargas was fired at crowds over the weekend. iran's leaders admit that the country's military mistakenly shot down a ukrainian jet. philippines, and erecting volcano south of manila has forced thousands of people -- in the philippines, an erupting volcano south of manila has forced thousands of people to evacuate. trading and financial markets has been suspended. the british economy unexpectedly shrinking in november, gdp falling 0.3%, casting doubt if the fourth quarter had any actual growth. it is also adding to concerns --t the bank of england concerns at the bank of england that a rate cut is needed. senate majority leader mitch mcconnell a resolution that it if speaker pelosi does not send over the articles of impeachment. she is expected to do that this week. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 270

>> one of our biggest holdings is the invesco px8.e think the valuations there and center for growth, while it a be slowing, could potentially be higher. in emerging markets stocks. well we do think you should see whileg growth globally, em could be slower, it is still higher than anywhere else in the world. >> people we have spoken to saying that the u.s. consumer story, which has driven stocks substantially so far, is starting to see weakness. would you say the consumer story would be better in emerging markets? >> i do think it is better. my biggest concern is if the u.s. consumer starts to weaken. that is again why i mentioned the employment markets in the u.s. i think job stability, waged ability drives confidence. and they feelyed like they are getting those raises when time comes, they will be secure enough to go out and buy things. the emerging market, the consumer story is even stronger. that supports consumer market economicich on an growth faces are even stronger. i think they have driven the u.s. economy to be one of the b

invesco weighing in on the credit markets. >> if anything will go, it is the lowest quality credit firstquality credit first. seeing the rally since october has been another good signal for us about the durability of the rally. , gershon priya misra distenfeld, george rusnak. underscoring the durability of the market. your thoughts? gershon: we talked about high-yield managers are in a quandary. last year was kind of free money. it was only the second time where high-yield did well and triple c did not lead. you have to take risks to get return. now do the math and realize your double b's are yielding less than 4% today. the only way to get returns is the triple see's -- c's. it's in the energy space where investors realize a lot of these companies don't generate a lot of free cash flow. since we don't know where the price of oil is going to go, for they don't think they know, who knows? what if we go to $80? these companies will be ok for a while. that is working so far. in the reality a lot of these companies don't work it $50 or $60 oil. you will see a lot of restructuring unless we s

dan draper, head of etfs for invesco. got to start with coronavirus. trends, 2020, 2,000 advisers here. what are you telling them they should be telling their clients right now about this >> these are guy who is showed up thinking about senate hearings, global trade, earnings season, and all of a sudden you have the virus this is a lot of new information that's coming in i think people are defensive going to cash, seeing the rally in treasuries. we're trying to say, look, longer term, interest rates remain very low here, so we're talking about if you need to remain in equities think about low volatility, splv, think about buying the lower volatility name until you hear more >> that low volatility was a surprise hit, came out of nowhere in the early part of 2019 huge inflows you're saying that's a possible alternative. >> for those no who need to go to cash should be thinking about it but long-term portfolio allocation, more information comes out potentially around this and other macro events, you need to remain invested in equities low volatility is a

sticking with high-yield, invesco's tim horsker weighing in on the credit markets.im: if anything will go, it is the lowest quality credit first. seeing the rally since october has been another good signal for us about the durability of the rally. jonathan: back with me, priya misra, gershon distenfeld, george rusnak. that last line, the lower quality credit starting to underscore the durability of the market and the rally. your thoughts? gershon: this is what we talked about last month, high-yield managers are in a quandary. last year was kind of free money. it was only the second time where high-yield did well and triple c did not lead. it was double b. you did not have to take risks to get return. now do the math and realize your double b's are yielding less than 4% today. that is not where you will get returns, the only way is the triple c's. however, a lot of the yield is in the energy space, where investors realize a lot of these companies, even in the best of times, don't generate a lot of free cash flow. however, since we don't know where the price of oil is

look at these two different invesco etf's. the first is lower on the day down 1.3% double the s&p decline. the other is a low volatility etf which is gaining on the day. one owns more stocks more shares. it meanwhile, the low volatility is insurance. so the it does today is popularity that the high beta trade has garnered and shows the possible risk. it since early october, we have seen the high beta etf search most 18% meanwhile the low volatility fund, which was a juggernaut has hardly done much of anything. we spoke with one investor over at tiaa and he said what today shows is that the trade goes both words -- both ways. on the way up and the way down. it's possible we could see investors shift toward more of a minella like boring trading strategies. puts close it out looking at gold which is rising on tensions in the middle east after president trump ordered an airstrike that killed a key iranian general. it is approaching a six-year high that it hit back in september. the move helped gold to build on the biggest annual g

388 at one point. >> joining us now, brian leavitt, global market strategist for north america at invescontly you've been feeling okay about the stock market and prospects for 2020 >> yes >> does this change anything for you? >> no. i don't think this changes the larger over arching narrative. look, what do we know as investors? we know geopolitical instability brings this forward. this could persist we have to look at what the retaliation looks like but the reality is the big mac crow stories have not changed and i'd be very surprised if we look back a year from now, two years from now and say this was the event that ended the elongated business and market cycle. >> in the past, and be we don't want to over state what's happened so far, but even military conflicts that become much more widespread or that, you know, turn into something much larger aren't necessarily market killers. >> that is correct that is correct. you could go back to that quote that warren buffet had during the 2008 financial crisis where he said in the 20th century we endured two world wars and any number of things a

invesco has issued a statement reminding the u.s. that it signed international treaties committing it not to harm cultural heritage sites in the event of an armed conflict the u.n. cultural body was responding to the u.s. president's threats of major retaliation against iran's cultural sites in 2018 the trumpet ministration withdrew the united states from unesco accusing the organization of being biased against israel imo is a professor of history and anthropology at shawnee state university he joins us now via skype from athens in the u.s. state of ohio good to have you with us professor what do you make of president trump's comments. all right so the deliberate targeting of cultural sites whether they're religious or heritage ones is a behavior that we normally associate with rogue states terrorist entity such as taleban and isis and their criminal acts and civil wars in general so you can understand the revulsion felt by so many of us and so many people run the well i say when trump seemed to suggest that cultural sites would be i

this is the invesco senior loan etf. it has $6 billion and trades under the ticker bkln.loating rate product, so as interest rates change, the coupon changes as well. when you look at funds flows compared to interest rates, through 2019 as we were seeing the fed lower interest rates, then as we saw the fed really stabilize, we have seen five months of inflows. what is really interesting is that after gundlach suggested this trade yesterday morning, we saw a massive block trade print. it was 3 million shares, $22.90 apiece, $69 million trade, and today we are able to look at the actual flows for all of yesterday. we saw in hundred $44 million of net inflows, the largest in three years. alix: that worries me. when you have one person give a trade and then all of the money follows it, it shows to me the desperate environment there is to get any kind of output anywhere you can. stephen: that is the --sarah: that it's a situation here. i don't want to completely be in equities because of the risks, but right now in fixed income, it is a star for yield. alix: and there could be

now there's less need for invesco your cost savings in terms of interventions for kids because it's improving outcomes for children. that's saving money for the local community that doesn't trickle up to the federal government. there isn't the cost savings to be reimbursed. they call it the wrong pockets problem in the social impact bonds space, and there's a way to address this. if the federal, willing to just pay paper outcomes, whether or not it saved the money, suppose the federal government said we care about that kids graduate high school in this dual gin programs that might be an outcome that you care about and we will pay for kids graduate high school even though it's going to be hard to measure the immediate return on that investment for the federal government. we project over the long run that means higher earnings, higher tax dollars is going to save the federal government money in the long run. we cannot measure it in the short run but we will pay for it anyway. countries in europe are doing this. the uk is leading in that kind a model and there's a lot of promise. >> i would say

franklin resource got a downgrade as well as invesco trow has performed right in line with blackrockabout passive or fixed income it shows if you have a brand, a process a secure hold on investors and financial advisors you can make it work if you keep costs manageable down the road who knows maybe trow is an acquisition >> if you have scale if you don't look to the aberdeen, not as good as blackrock. but they've survived by acquiring scale. other ones stating the obvious which had the best performance in the private equity companies last year taking off >> exactly that's the next frontier private equity is where a lot of end investors believe there's still an edge or you have to pay up to access private margins >> okay. mike, thanks so much up next the great escape we'll have the latest details on nissan chairman carlos glon flight from japan and how thrts are trying to get him back >> find out if surging stock prices helped surge auto prices in the move december "closing bell" will be right "closing bell" will be right back ♪ ♪ everything your trip needs for everyone you love. expe

joining us now to talk markets and investing in this environment is the vice chairman of investments at invescok you for join us. what do you want to do as investor. >> while uncertainty increased, investors ought to think about a few things as they make adjustments to their portfolio. the data, it is unclear that the increases in geopolitical risk actually leads to bad returns over the next 12 months. so that's point one. two, when you constructed the portfolio, you constructed the portfolio taking into consideration a few drivers for the market that had a positive outlook, economic growth, trade deal, the fed balance sheet expand aing, interest rates relatively low. all of those still remain in place very much. third, when you think about uncertainty and try to incorporate that in your portfolio, the right way to deal with that is figuring out how much risk you want to take, rather than just basically running from one corner to the other, depending on market developments and i think what the current situation argues for is in your portfolio, is you should have a decent allocation into bonds,