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Wells Fargo Funds Management Chief Equity Strategist John Manley on why he has a bullish outlook for the markets and what sectors investors should add...
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Crisis we've got a strategist who's raising -- market outlook for the year here in the US.
And he says stocks could actually -- ten to 15% from where they are right now joining us now is John -- Wells Fargo chief equity strategist I got a -- John.
With the Swine Flu shot I love that -- I couldn't I couldn't take it take -- one beautiful -- more and turn it metaphor and turning it into another way.
It's it's it's and it's a very strange things we see things that.
Aren't there are sometimes say there it's very strangest thing -- -- used to seeing unexpected things happen now but this one is taking taking eight -- -- the yet the Black Swan.
This is a blacks one flu.
What happens when somebody's infected by this -- always looking for things to go wrong and they have gone wrong and whenever things look good I'm sort of conditioned over the last several years and I think there are very bad things out there that could happen but they don't have to happen right away and I think the market is sort of looking at the old -- and wondering if we go through them is there any resistance for.
While you start of the year bearish yet your reason your outlook for the that the market in general and and things look pretty good at least from where you stand what is it saw.
And we've got a lot more to go in this year's sell anything could really -- get -- confident about the solidly bearish than thought was going to be a miserable year and I've been wrong about how strongly it's gone up.
But I think there's still a price we pay you look at the rioting in the streets how do we enforce -- the market -- -- -- and at some point in time so.
Art are upward levels of our band was thirteen fifty it's now thirteen seven -- minor increase.
The Swine Flu thing I think is one of those one off and maybe the market shouldn't go up but I don't do everything I -- sometimes the market doesn't -- you know I don't wanna get too caught up in numbers but thirteen 75 -- at thirteen 61 right now -- fifteen points away their accounts and it's best to have Norman Bristol.
Yeah I enough -- so to answer.
There's a lot of pressure go up I still think that's probably the -- and longer term I think we fix it.
The -- finger holds me back -- race in the target.
Is that the market is part of the fix it's but it's -- it was for the bond vigilantes back in the early eighties the stock markets act as the enforcer.
Help us investor economy you've been on the street a long time -- highly highly were respected and regarded so.
How do you invest around that Black -- that one bizarre moment in time slew that you might say is expected and also all of the other problems around the globe while -- -- things to restrain Israel are like the energy stocks I think some of the things that might happen could happen but even if they don't think lifting costs are -- crisis to be higher.
I like technology because -- the disinflation or even the deflation -- -- -- -- corporations race profit.
They -- technology I like health care.
Because health care spending as percent of GDP hasn't risen from last two years that's on natural someone to tell my insurance company and -- like a consumer Staples because that's the way to play I think.
Some of the emerging markets -- high quality good yields.
If you don't make it right away sooner or later it was back to get in the way of good things.
Let's go back to the Black -- on one of those sectors health care what happens if Republicans.
Take over the White House and take over the senate.
And reverse obamacare does that affect health stocks that'll sure does -- -- of the year older year from now and so will everybody else was around.
As a population ages health -- actually makes addict as a result of the -- -- to a degree.
It keeps me -- -- longer can spend a lot more help turn -- used not just this thing that's keeping a -- but other things -- would it would a Republican election or a Republican win during the election cause you to rethink health care is -- sector now -- -- -- -- for well -- always we think everything I -- somebody's gonna pay for whether -- -- of the government -- us through the government the government and -- -- some sort of combination staying alive is very -- and the most people's -- things to do.
And somehow it -- it is.
Well some of the breaking news today was that oil as we mentioned have gone above a 105 dollars a barrel intraday overseas in the trading that was happening.
And so the question becomes what kind of energy would you invest in would you invest in these so called master limited partnerships that everybody's talking about the -- a nice dividend.
Maybe the integrated big oil names or -- -- simply for pure play trailers.
Well if there -- a hold bunch of shopping things -- on that list.
I I actually think the big high quality names are good yields are high quality companies it's hard to lose my funeral for a long period -- I do want to play natural gas and power I think in the so cheap.
It is so cheap and it's gonna be so.
We're close to being self sufficient lot of -- do you play the infrastructure because if you if you buy into the gas itself you may be catching a falling knife you get play into the companies that are gonna benefit from the lower price I think that's probably one way to look at and it's in this a lot of gas out -- the question is how to we get it in here and there's all sorts of what.
Want money to be made along the way.
I think this jobs to be had to at the same time so I think it's.
It's a great way of investing in America John Manley of Wells Fargo brake -- on the program thank you so much -- you pretty.
