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Now we just wrapped up a great quarter for stocks but our next guest on the program today says we're not even close to being done.
Yet about this the S&P 500 at somewhere between fifteen and 16100.
There it is at thirteen to today Kevin broad portfolio manager and co founders Stifel Nicolaus -- Sponsors for talking about a 190.
Billion dollars in client assets and make that case for why we can keep going up and it won't be a pull back Kevin.
What's really two pieces number one when you look at the valuation for equities after ten years of going sideways.
What you've seen is that valuations on equities are very compelling compared to bonds.
When you're looking at yields on bonds are yielding maybe two and a quarter percent for ten year treasury.
Cash yielding basically nothing but that in and of itself isn't enough what you have to see is fundamental improvement.
And again the data this morning that we saw in terms of the ISM data and the data we've been getting on on payroll growth for example.
The vast majority the data we're looking at is moving in the right direction which is not to say that the patient isn't is well yet.
That is clearly getting better right valuations plus improving fundamentals of the bullish outlook and our view.
Now some people look at it and say and I've heard this comparisons over and over to say last year when we had the run up -- and something came along.
Boy there's trouble in Europe.
And maybe this year it's higher gas prices -- trouble in Iran and we're due for some sort of a pullback do you think will get one in stocks markets not doing anything by the way today.
But do you think we'll get some sort of a a measurable pullback in stocks -- would at least be a correction that allows the market to go higher horses straight lining in the way you see the.
West are certainly got to get pull -- says that's 10%.
Fall back -- it in the cards for just -- any given year and that means that investors should not be.
Throwing money at stocks Willy -- I think they should be choosing -- spots correctly focusing on value and quality.
But overall they are overall judgment is that when you have improving fundamentals and you have decent valuations which we do today you need to move along with that.
Let me ask you quick question about the economy because as part of those and prevent a fundamentals has been an improving labor market jobs.
Are coming back right and then you're talking a moment ago the governor about the automotive industry coming back with the jobs picture broadly speaking is coming back.
And you know the thing it's.
-- there's the jobs report this Friday which by the way timing wise will be very interesting on Good Friday to see how market takes it.
But they expect 200000 jobs -- seven -- yet it's still 8% unemployment.
A point three do you think we're going to see.
Or what do you think we're gonna see in terms of the job market for the rest of the year continued kind of at least fairly strong growth or will it be fits and starts there as well.
What we've been doing about 250000.
Jobs a month but the important thing is that.
Most of those jobs almost all of those jobs are coming from the private sector which is something that has not been the hallmark of this recovery thus far.
And it's interesting to see that.
After we went -- what we went through in the third quarter of last year with all of the volatility in the markets.
That we have seen a steady improvement in the employment picture coming from the private sector.
I can't emphasize enough how important that is it's very good to see so we think that this continues.
At least through the end of the year.
Aren't fed minutes tomorrow on the whole thing just before I let you go way in real quick on what that governor blunt was talking about in his recovery.
In the auto industry some say we never -- bail these guys out -- from where you sit somebody watching the markets you agree with them that we're back.
I think I think in terms those in terms of the moral hazard that you create through bailouts I think that that's unquestionable.
-- there was a political judgment that was made to bail out the auto auto makers because of there right because of politics in the size of the the number of people employed in -- that industry.
We're moving beyond that now I think that we have global opportunities in a wide variety of industries.
And I think that investors that are patient and can pick value and quality are going to be very well rewarded in this environment the polish Kevin drawn -- -- San Francisco.
Today she can weigh in on Kevin's comments about -- autos -- stocks on our.
Our FaceBook page to thanks a lot Kevin -- appreciate you coming on.
Thank you Connell from -- --
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