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Stifel Nicolaus Portfolio Manager Chad Morganlander on investment strategies leading into 2012.
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All right time for the -- today Chad -- like consumer Staples -- -- -- Yeah what you have to do though you have to take a step back and understand the 2012 -- believe.
But the S&P 500 is gonna have a wide trading range between 14111.
-- So with that said I'm looking for consistency.
And stability on the revenue side as well as on the cash flow side as well as companies that.
Don't have to go to credit markets and well capitalized so those with that in mind.
You have tech tech call the technology companies as well as Staples that give us a very good consistency.
OK but still if you look at the -- we were up about 10% for the year we are as we close out the year for this -- for consumers' tables of about 10%.
Do you think that we're gonna be able to get that same gain.
In 2000 while you could get a gain like that when you take a total return look at it so you can get dividend growth.
-- dividend growth and you get -- capital appreciation as well.
Okay are right now what about -- you mentioned technology let me get a development -- with -- with cattle I tell -- I keep hearing technology sector over and over every -- someone come on come on news comes on -- -- -- recommends it.
Do you think that -- -- a little too positive right now that technology there could be some land mines we had Intel we had gotten TI this year.
Hello a couple of -- had that.
You have companies that are very well capitalized and what I mean by that is they don't have any debt have a lot of cash on their balance sheet.
As well as -- consistent cash flow generators so I would look towards a mega cap and large cap tech stocks.
And I would stay away from some of the small cap Texas Tech names at this point.
All right well let me ask you about this we've had so much concern now about the banking system in the financial system not to the -- to European banks -- US banks.
As well and it seems that there's a flight away from financials maybe 20% of -- the come on the show say.
I like financials the -- do not and you don't.
I would just say under weak financials at this point in time he's still going through -- continual team leveraging.
What on the on the financial system sign and in particular as well on the household side.
So you just wanna be a little bit more conservative at this point in time there will be a time for financials to be very bullish but at this point I'd be a little bit more.
Cautions you be more cautious about financials do you think that any of the regulatory issues that they're dealing with a particular Dodd-Frank is that comes on the high to think that's going to be a problem -- have some of the big bank.
That creates an infinite amount of uncertainty and and that's unfortunately.
-- see that within the share prices of these financials and that will continue into 2012.
When you get a better the outlook there.
Then perhaps sellable to risk takers are.
