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Neiman Large Cap Value Fund Portfolio Manager Dan Neiman on how to invest amid market volatility.
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And look at the performance of Hewlett-Packard so that is what is happening with the stock we're gonna continue to watch it throughout the afternoon here on Fox Business.
We're also watching the Fed -- they deliver an operation twister twist of -- on the heels of a letter.
From GOP lawmakers urging the Central Bank to stand down and avoid any more intervention in the economy Dan neighmond.
Portfolio -- manage the -- and large cap value fund joins me 91 so I do wanna ask you Dan about the Fed.
What do you expect to hear from the Fed if we get some type of policy action like the twist bit of it is talking about is that a good thing for the market.
RC show out of over the good thing or a bad thing but I do you know to create a lot of volatility.
One way or the other and now there's been a huge and I volatility of the markets the past eighteen months.
And there's been a lot of focus on.
You know what's happening lately what's going on right now on what the what the hot sector and now one of the things we do -- -- -- -- large got the iPhone hasn't had a sort of weed out all that noise.
And stick to our fundamental approach to investing.
And I mean there's a few things that you like -- a particular you like energy we got homeland oil inventories.
Out this morning medicine effects in the contract reuse and we still should be looking at the energy sector why.
Well as as fundamental approach fundamental analysts I like to look at individual company from the bottom up.
One of the areas that comes through that screening process is energy and others consumer Staples.
And also transportation stocks couple energy stocks that we're looking at our Chevron and Occidental Petroleum.
Both pay really nice dividends and they have good dividend yields.
Relatives -- -- appears low PE ratios.
And we see value especially in occidental being down now urinate.
So I think energy a good place you're looking for dividends and dividends help but sort of -- got ride that volatility I was talking about to -- -- -- it's Brian Lewis speaking I have a question for yeah.
I'm a Richmond -- and I understand that you like Altria Philip Morris.
Talk to me about people who are a little bit reticent.
About investing in tobacco stock these days what do you say to them.
But what I say that it is again dividends I mean Altria has been around a long time either spun off Philip Morris international another company in our fund.
And both companies pay -- dividend and what what they seem to be proving is the standard case -- tobacco does well in a recession environment.
Tobacco does well when the markets down and what we found is that holding -- coming like -- and and another company like Philip Morris international.
Can really help a smooth out the ride for investors in the fund.
Dan it's great chair and I really like the rails.
But in that regard I hope you're not counting on the president's infrastructure plan to be passed.
How holder no we're not counting on not flannel were counting on is that cost of fuel actually rising and companies that rely on.
On time deliveries businesses that rely on on time delivery is up product superior selling or buying.
Can count on the rails to be on time we've seen that.
-- help control prices for companies that rely on a rail and that's one reason that real will continue to prosper.
Daniel you do expect more short term volatility for the markets you do expect this type of environment that -- -- to continue.
And last for the next few months few years cow what is your timeframe and all the Stan.
-- Well I'm I guess I'd say -- I'm conservative conservatively optimistic in regards to slow economic recovery.
One of the things we also do in our fun that I also due for separate counts -- that's all covered call options.
If you know that protects you on the downside it does limit your upside potential.
But I feel in these volatile times weather whether the market's gonna go up or down that.
That kind of strategy can really help smooth out the right and I all I honestly can't tell you guys where it's -- ago I just hope that the volatility continues to that's -- that helps sell on the covered calls.
Not -- -- day dynamic.
It's not what it does make good money summer Dan name and large cap value fund and even large kept by funding.
