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Sixteen points and my next guest says and that's -- focused much on risks out of Europe in.
He's betting on the bulls in the near term joining me now as -- -- -- -- manager with.
Fifth third asset management -- it's great to see -- aren't some pretty good news here in terms of the initial jobless claims again a strong January -- -- it is encouraging to -- He said -- bullish me even more bullish perhaps given the good news.
Well you know prices have risen -- certainly is as you've seen and we said some time ago that our last summer's on.
That in order to gain confidence we would need to see some job.
-- we would need to see improvement in housing and we need to see the the ECB stopped tightening in and all those things that happen so we're relatively bullish.
OK so how much of year allocation -- would you direct toward equities.
Oh well I mean where.
You know we're aware of equity funds aware fully invested but just -- average investor.
Our -- that's yes.
I think it's a risk that -- right element of the -- In other words okay I'll let you talk about it getting away how much it is how much risk are you willing to take you say my notes are you continue to have a pro cyclical tell.
-- taken on more of an economic recovery.
That's correct -- are are portfolio has a beta and the range of one point 05 right now that's a little.
A little stronger than typical in terms of us -- -- and so yes we're and that's been helping us outperform recently.
I -- talk about a higher beta stock for example obviously that's something that's gonna trade a lot more volatile than BS and 500 index on average cracked.
It's more market sensitive right sure I can look at your -- CD technology.
Company makes hard drive 64%.
This year to date but 87% gain over the last 52 weeks -- is not a high wire where do you see additional upside.
Well you know it started from a very low base we we see a tremendous supply -- and hard drives.
-- pricing is extremely strong.
And -- -- the prime beneficiary.
And what they're doing they're not they're not pushing pricing.
Overlay on their customers their locking in will be using the opportunity to lock in longer contracts.
And we don't think that V outsized profits of the next year -- so our sustainable of course.
But they are going to use the profits to sharply reduce their share count.
And we also think that going forward you know the industry has undergone tremendous consolidation.
We don't see any entry especially with -- on the horizon you know several years out.
And so we don't know that the industry's gonna replace all of the -- capacity so we think the profitability picture looks tremendous right now.
Yes like the profitability picture Dell computer you say in fact it'll surprise us house out.
Yes well we think that it their business mix is changing right now they're going more towards storage networking and services which are higher margin businesses.
And PCs and servers which are their bread and butter but.
They're low margin businesses and some of the -- revenue.
-- is that they had in recent quarters has been due to the fact that they have been.
Turning away bad low margin business and we think of that process is just about over.
And so revenue growth should surprise the upside going forward -- we'll see what happens Ted Moore thinks -- idea.
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