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Kim Forrest, Fort Pitt Capital VP and senior analyst, weighs in on housing data and its impact on the market, plus how investors can find buying oppor...
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Stocks trade good price joining us now -- can sports vice president and senior analyst report -- capitol and -- I wanna ask you you know I know that you are -- believer in this market rally that we are due for a correction that we're gonna turn around and turn things are -- But I wanna ask you about the strength of this market and we have all -- data points and markets doing well economic -- and manufacturing.
I mean there's so many things we can point -- but the one data point that remains iffy it's housing and today we learned that new home sales fell one point 6%.
This is a lowest reading that we seen since October.
How can we have this strains in this market and this disconnect when we still don't see the results and the housing market.
I think there's a real disconnect and that's one of the things that bothers me about the euphoria of this market since the beginning of this year.
Investors have really looked past some what I consider important data.
Normally I have to say this a glass half full kind of person.
-- you know there's the credit overhang that's happening out and Europe and then -- China we know that they're slowing growth there and finally on our -- housing continues to be huge problem.
And we're really not working through you know the housing problems so yeah I eight.
I don't have any real answers for you bet investors just seemed to overlooking.
Are so what what are we gonna take a hard look at our problems we have situations in Iraq we have the housing market and we are -- -- and volatile election year as well I mean is this going to be the source of our correction.
When he finally really look at ourselves in the mirrors are going to be something else that causes us to take a momentary pulled back and this just ignore everything all over again.
Sure well I don't know about I.
I would love to have the exact time because then you know I would -- up and load up at that exact time that I'm not you know I have that I can't see into the future.
That being said I I'd look to earnings season because I think we're gonna see some earnings adjusted downwards for this here.
And that could spook investors so that next probably month or so is going to be a very interesting time for the market.
-- now having said that by the way another disconnect there's you know the GDP numbers and estimates keep going down and down I don't know how.
We keep could how we correlate great jobs and in the slow GDP growth but having said -- all of that.
Do you still think that there are opportunities for investors in the stock market.
Absolutely.
You know you look at the other classes that you can invest in cash is returning.
Nothing bonds look overbought at this point they have very low yields.
And so -- look to companies -- make things and especially if you have that long time horizon.
Hours is three to five years I think there's a real opportunity out there for an investor.
And and and the two these are did you like I -- -- fascinating because their buddy who plays now.
You have to be a highly ranked software analyst part of the software analysts is one of the best in the country and -- blows.
And AT&T -- -- -- how do you make that transition.
Well that the -- was a highly ranked software analyst was instead of buying high and hoping to sell higher.
I always looked for value I always looked for a month software companies and then for catalysts.
That would convert them into you know higher yielding.
-- it's stocks so it looking at other industries.
You know that's I see value everywhere and Lowe's is a tremendous value.
Play they own insurance companies gas pipelines.
And they buy everything in their at that time when -- -- -- which it you know I am.
Tell your viewers to buy unloved stocks that you know look like -- companies.
And then sell them whatever everything seems to be going their way.
And what about 1018 T and Verizon can't minorities say they haven't participated in this market's rally yet you know we've been getting -- had lined that they -- increasing -- of they're gonna start.
Throttling data plans -- -- eventually gonna come and work in its favor.
Well there right now they're the only game in town if you have a mobile device -- you want to be able to reliably -- Data for -- device.
So it's it sticker -- right now.
For a lot of the iPad.
Sorry it's almost gonna say I've had -- that's not right at the new iPad.
And I think you know people want to have these devices they want to have data everywhere and even being tethered to your home Wi-Fi isn't really sufficient.
For these devices so in time.
Wireless providers are gonna work out amenable plans -- met you know.
Limitations that work for most consumers probably not the heavy data users by that you know normal people using the devices normally so.
We think that this is still a growth area.
I love what you call lad he's tech devices -- forest city in your market research OxyContin for the math says I'm certainly an addict I know everyone out there.
As their own form addiction.
Form of addiction can forest of sport -- capital we -- -- at the iPad three to say no more about it see you later have a good weekend in.
