rise in commodity prices are hurting the economy. some economists cut estimates after data that showed exports dropped along with imports. an sec official is questioning at&t's purchase of t-mobile. the $39 billion acquisition it will create the nation's biggest wireless operator. if it is approved by the sec and justice department, the deal would leave three major wireless providers in the u.s. president obama is expected to call for higher taxes and cuts in entitlements in an address at george washington university tomorrow according to a person familiar with the plan. the proposal is said to be in sharp contrast to a republican alternative that calls for a voucher-like system for future medicaid recipients. i am mark crumpton. i will see you in one hour for your nextupdate. >> our next guest says we will avoidce-debt situation. good to have you here with us. we have had some folks on who have said they actually find some opportunity in some of the european debt. are you avoiding it completely? >> not completely. you have to look at each company -- country on its own merit. overall the road definitely has some tough problems because we do have high debt levels. -- the euro definitely has some tough problems, because we do have high debt levels. this could lead to a combination of policies that could blow up in their face. >> that is interesting. we have people on who sayhe europeans, the ecb, the you, they will take care of whatever problems plagued the region. others say not so much. where do you weigh in? do you feel like we have seen the worst? >> i do not feel like it is over yet. the ecb does not have a mandate like the fed. it is great inflation. they are very hawkish on that and they act very independently. when we say europeans there are germans, french, english, irish, and they all have different problems in different parts of the economy doing better or worse. >> we bring you on because you have a great track record. when you look at europe specifically, where to find opportunity? >> you should look at a country just like a company. you look at the balance sheet. you look to see if they're doing the right thing. they benefit because they have a lot of oil. that is the type of country i want to play. the neighbors are not great, but they look good compared to any country in the world. >> what about the u.s.? >> we are overweight the u.s.. there are some great companies out there but -- 60% is what you have. >> emerging markets are really the go to, because that is where the growth is, but the problem is there is a convergence between the u.s. the into emerging-market. there are lots of great companies, they're just is not as many as there used to be. >> the opportunities are getting tougher to find here. >> when you look for work, you cannot see 20% returns on high- yield. when you look at high yields compared to other bond losses, it is still attractive, but the spreads are still coming in better than average, but fundamentals are great. >> they are really low. >> the possibilities are great. you should see spreads come in steadily, but not to the extent we have seen, which gets you a good return. i will call it a seven on a scale of 1 to 10. you do not want to be under way. >> what about when rates start to rise. in will this present a high- yield market? >> that is a great question. clearly treasuries will rise. but also implies the economy doing well. usually you get spread convergence and that. it is not one for one, but it definitely mitigates the downward pressure on price. >> we talked about the difference between the highest rate of junk bonds expanding at the fastest pace in the year. they talk about the rising concern that oil prices will slow the growing economy. is that playing into your thinking? >> i do not see any evidence of less demand for risky assets. people have not bought into the equity story, and i think equities look cheap compared to high yields, but they are clearly buying into high yields. whether that is retail, insurance companies, the flows are unbelievable. one week after the japanese earthquake, and it turned around. valuations are not awful, but people need the yield. >> thank you. andy feltus for joining us there. one of the players in the equity arena talks about the likelihood of a double-dip recession and where he is investing.