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Today’s Market News: Monday Stock Picks
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What companies should you invest in?
- Duration 5:06
- Date Aug 22, 2011
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What companies should you invest in?
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That's -- metal cause here every Monday to weaken recap what happens.
What we think it is a minister hundred points on the doubt one could argue is -- it and nothing -- there but at the same time.
Could be -- picked.
Could really be is probably combination several things I mean.
Give my we have over 100 points early this morning -- back -- -- break -- -- basically now we're back up 100 points.
We're still a lot of volatility but ended maybe we'd have 300 I would not blink and I -- I mean I think we're probably in about an update today after the big sell off going -- the weekend there's a Friday.
We also was -- a double bottom -- has -- support area that we came down to in the last pullback we had a week and a half ago.
I think He came at a very similar level and the lows so you need to have some buying coming in once again the same level buying went on just two weeks ago at that -- eleven miles up.
I think that's a -- reason we're going in we Austin tenure treasuries.
Trade below 2% black lady -- yeah I -- If people are rushing into treasuries as safe is safe haven along with gold -- get to a point where they're getting paid less than 2% to lock up your money for ten years -- US government bond which.
The nice -- completely secure and safe exactly so.
You have companies after paying amazing dividends 344 and a half percent.
Trading in the best levels as far as valuations concern the last 45 years so -- -- -- that money shift out of bonds in equities are seeing that now.
You I.
I -- this weekend over a bunch of these numbers -- these.
Takes a longer term indicators and they're all pointing to a market bottom.
Not today not tomorrow but in the next couple of weeks we're gonna see a market bottom so I think you start scaling in here I think a lot of people saw the same numbers I saw this weekend and they're putting money into the market.
You making the point that because some thank you can now -- -- Like -- Procter & Gamble because that pays a dividend rate with.
Treasuries yes.
Right -- Art I think it's -- -- get people are going to be buying -- and toilet Paper and no matter what happens if and then you have this bond that supposedly backed by the most stable country in the world and yet.
He -- these these -- might be.
It -- you met twice it now leading -- -- biggest seller would have you want that you don't have.
Have that be a risk that I see the stock could fall below a key -- -- -- people people and economy fell apart 2008.
I believe in trying to pull numbers I think actually parking was actually up that your so even if things fall apart that's it has people and those well.
Also keep in mind that -- yields go from two to 4% and a ten year.
You're actually losing money your bonds about the price of your bonds when they're getting into is actually gonna tumbles alleged that you lose money at the same time so.
If fired up by Procter & Gamble our thoughts and talk about full -- -- national vs the ten year bond.
This is no question I'm buying this -- by the bonds United States thanks -- -- did you percent is and is not worth it to -- It's -- -- I feel like we've sort of come back to the old Peter Lynch model of stock picking if the world is.
You eight cluster you know what -- now right nothing is certain.
Except that I'm the numbers may keep smokers are gonna -- and I hope hook yeah.
That's not your -- -- -- -- on mortgage.
Yes I EU brokered excellence is certainly -- -- -- beginning in order to woman had a good week last week you know I think really good numbers people have to at a woman the -- the exact thing you just talk to my even though He was at the Wal-Mart stories over.
I think it's not over -- You go back to 2008 the market was down thirty a half percent Wal-Mart was up over 20% in that same year so if you're scared and you do was a person.
You don't wanna sell and you don't just rotated to a Wal-Mart the Philip Morris international's of the world in so they had to get a dividend between three and 4%.
The stocks -- can go up and down market.
But don't run for the exits.
I like some of those facts but also think at this time He looked to the risky assets as well I mean look at the emerging markets is a great story in Kansas we can talk about the emerging markets that.
On a valuation basis they're valued lower than Western Europe the United States at the same time they're growing about five times faster than the same regions up if you took to -- the way you saw that.
Growth and value emerging markets can you advise him to profess that they'll people are so concerned because they're called emerging markets and as China Brazil India we're really that.
I think you have to invest in there but.
Like a couple you know going to -- this year who's who knows all things China on Friday his concern with China is China so reliant on us to buy their goods sure.
And if our economy tanks and we're not buying goods.
As it that doesn't bode well for China know China's dependent it in their own little world and in my mind we -- -- emerging markets.
This child and then as the rest of the emerging markets is China really being one of the biggest economy in the world is moving quickly -- -- -- market because -- kind -- -- just so big and they do rely on any any are -- United States and Western Europe.
So -- actually Indonesia.
Most of the countries -- in South America -- there'd be Brazil Chile Peru.
-- does connect the United States.
Thank you don't like what's bringing on this market you look at the hardest hit sectors last week -- last week.
Financials the financials -- emerging markets do not have the same issues in the financials and Western Europe and the United States have an adult market pages do not have the same issue.
Sure they tied to a goes on -- global market -- and the global recession absolutely.
But they do not have the same risks are not as leverage as a lot of development -- so you take that risk out and I think emerging markets look even better than they do with valuation and growth which.