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Recent rally in stocks -- next guest says that there's no chance of a bull market until Washington gets its act together on the debt -- joining us now is David Nelson chief strategist.
For -- point asset management thanks for being here David it.
You know we are -- markets -- -- 150 points the Dow ended the quarter I think this is the fourth quarter -- it's ended higher I don't see much -- any sort of cause for concern investors seem pretty bullish right now despite congress.
Going on in -- on holiday vacation this weekend.
-- it feels pretty good I can't deny it and and I I guess I can't imagine any of your guest came on last Friday.
And said that they were looking for a monster 5% move this week and and I certainly would have been one of them.
I -- this market on a day like today feels good I'm sure investors are feeling good but we do have -- issues to deal with and and let's not forget that the debt limit is right at the top of it.
Are right so so what else happens I mean do you think that there is any sort of chance and we don't deal -- the with the debt ceiling.
Of course nine we all know it's gonna get done I mean that that that's obvious -- go right down to the wire because you've got the political right.
Extreme right in the political extreme left duking it out playing to the constituency.
But they're not doing their job because what they're -- they're trying to do is get votes and that's not what this is about political.
Political science we'll tell you that you know politics is a bad about you know compromise and that's what they're gonna have to do to come up with a solution on this but so that.
Would you wait until after -- cobbled together thought and I saw do you have buyers are so -- -- -- viewers they certainly wanna be a -- Before the debt limit I can't -- concern myself with the debt limit in terms of what we do we stocks look.
You know one of the things we try to do -- -- is stick a weighted scale Wall Street and and and and try to educate investors and for me to sit here -- -- -- and give you the all clear signal for the markets that everything is great I can't do that on the other hand it's not Armageddon -- things out there to -- So that that's why I'm sorry but that's why you're saying be -- buyer but you have to be a selective buyers selective so what are the criteria people need to understand.
Well I think he needs -- it I think you need to take your points and you need to look for secular themes things sycamore can weren't -- -- environment you can.
Park yourself in about us stock like bank of American film while getting in -- 52 week low but you know what six months from now somebody else to be getting in and of 52 very well I don't think that's really the right solution.
All right what do you -- hair picks that you're recommending for your investor well I'll give you 11 of our picks that we have right now it's a secular themes you know on the pilot and a bit of pilot for a lot of years I follow the industry very closely.
And it became pretty clear to me that you know Boeing 787 that's really the future of aviation and that means.
That means space age lightweight materials like what Hexcel Corp.
produces this avoids -- -- now.
We've on the stock for some time now but.
These these types of products go and hire an aviation.
You'll find them in wind turbines even even skis and I would expect the double digit growth -- in this company for years to come.
-- also big fan of apple look at name -- any hair repeated over and over and over but you know what I find compelling about your rationale for this is that you believe that apple is.
Worth a hundred dollars more version today.
Today right this minute and I think what the market is pricing in is it is a negative event this likely to happen.
I think everybody has a myopic focus on on Steve Jobs health and its concern it would be a blow to the company is certainly a blow to investors but you know what apple move on.
Beyond Steve Jobs this is a great organization.
It's one of the great entertainment companies of -- time now it's not just a tech company.
Did you wrote a lot of stuffing your letter that went out today we're about Q2 you -- wrote about the 200 day moving average holding.
He also wrote something about mutual fund flows now right now individual investors -- pessimistic they're taken money out of the market they're missing this rally.
What do you say to the individual watching this show right now who.
They get nervous when the markets out of the -- -- up this -- dilute you know I.
I watched -- all month flu like you did Charleston and and people piling to one side of the boat one day in the risk on trade and -- to the other side of the boat on the risk off trade.
And it it it looked kinda like you know the passage of the Titanic billed minutes before it went down.
Everybody was really confused and there are -- professionals like -- myself -- confused but you know what we have -- pull out there.
Look for things to buy because most of us including myself we're not gonna be what time -- -- perfectly into this market got to have some skin in the game.
Gotta have some stunning and that's what I wanted to hear peninsula are right Nelson -- --
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