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-- -- our next guest he -- market weakness heading into the new year it has a few healthy place to help out your portfolio joining us now is -- Morales.
Managing director virtue of selfish investing good to see you again deal you're cautious morning Chris you remain very -- -- -- -- 2012 don't you.
-- -- right now we're actually in -- when things that bothers us is the movement in gold below the 200 day moving average the last time that happened was August of 2000 name about a month later stocks began to correct sharply we think it might be telling us that QE this time around coming out of Europe and what the Fed is doing right now at the dollar -- isn't really enough.
To keep propping up asset prices so we need to see some growth later 12012 to get things going.
What are the big things going to be here in 2012 and -- Europe continue to influence US markets down.
Well I think it will because as long as Europe is centered around what is essentially a liquidity crisis you know that could lead to force selling -- finance institutions are institutional investors are again forced.
To raise liquidity by selling assets and that would put pressure on stocks.
And gold and we think the pressure on the precious metals has been part of this.
As well so we think Europe will continue to be barometer for the market and -- keeping an eye on in terms of news flow -- -- -- think the now election now the pending election in the kind of build up -- will impact stocks in the coming year.
But what business where we're actually optimistic these -- we see the market being weak in the first part of the year.
Possibly continue -- to be very choppy we think that mid -- may even spring time the market could start to discount.
Changes in economic policy -- -- come forth after new government coming in the power after the election in November.
So that would start to discount movement in that policy -- after January 2013.
Market -- six to nine months ahead of time we would say you might see a rally in spring or summer coming out of this -- that we're -- now.
So -- -- told us your currently.
In cash that you're not necessarily by rats but he did have some defensive plays in the Biotech and medical device maker industries tell us about those are first of all lightly -- feminism to break it down.
Sure the medical area as -- has a defensive aspect to that we have seen some and a bigger pharmaceuticals like American and Pfizer acting pretty well.
Also in a weak economy and a choppy economic environment medical -- after medical devices and services and drugs generally doesn't drop off so.
This area's been pretty stable it's actually held a very well -- a lot of the -- this we've seen we've seen throughout the summer time.
So why you're there are some names we have a laundry list of names that were watching and we would be opportunistic on any pullback slipped to buy into these stocks.
That does that sort of is my next question because one of the -- you like is intuitive surgical with people lot molecular familiar with that name.
What they're up around 80% of this year -- would you be a little cautious getting any if you decided that the market was turning you wanted to put some of that cash to work.
Well sure the stock is up 80% for the year but if you look at intuitive surgical long term pattern stock has really been moving sideways for not quite two years about 1819 months.
And it's only recently come up to the mid 400 level.
To new highs so it's really just starting a move out of this big consolidation it's been over the last 1819 months so we see it is potentially early in the move.
Double digit guarded the standard and -- about that but robotics surgery and over the long term -- do you see surgery moving.
More doctors are more robots we see more robots.
On a similar high flying in -- you've got the stock Alexion Pharmaceuticals up 76% yes.
This year and you east south Philly you describe it is a one trick pony -- that on liability.
In your in your.
Well because it well solaris is a drug and right now excuse for a very rare blood disorder called PNH and I believe -- answer rocks is small nocturnal hemoglobin -- or something like that get a -- -- that got hit Allstate to DNA check the right now yes it's a one -- -- because it has only one application -- the judge solaris does.
But it's the expanded.
For another Milan morality which is that H HUS.
Or a typically -- -- -- we remic syndrome thought.
Well and -- so they're expanding the applications for the drug but it does have very strong growth.
Mid double dip earn double digit earnings and sales growth and the stock is only recently broken out of a nine we consolidation in what's otherwise been a lackluster market environment.
We see that as a sign of technical strength and has potential new -- -- the can hold this seventy price area.
-- happy new year -- via good seeing you again same do I haven't -- take care.
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