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Will Investors Stick With Apple?

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  • Description

    The Leuthold Group founder Steve Leuthold on the outlook for Apple and the markets as a whole.

  • Duration 5:06
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It's close -- loopholes mean capital management helps investors with portfolios of one million dollars or more but today the firm's founder -- -- Has traveled all the way from Minneapolis to give you his advice for free -- if you know half a million bucks to invest Steve it's great to have you with us.

-- you heard the two prior speakers there key tough to ping an outlook down especially considering the seasonality where we are the last couple years this is where.

The markets the economy we've -- lose some steam what's your take.

Well -- it's been a big big run and without a decent correction at peak to trough decline -- maybe 4% doesn't really qualify as intermediate correction.

Or even a minor correction at that point so.

And today -- the market's pretty flaky look what's happening in terms of the divergences.

You know with the apple and what's happening with Microsoft.

And at the same time look at the new issues that went through the rough up 88% with a one another one continued to advance I mean.

This is getting kinda.

Scary I think from short term basis by the way you mentioned apple it's part of that 4% club it represents 4% little greater than 4% of the entire isn't -- right now how long do you think.

It remains a member of the 4% club it's in pretty yeah esteemed company right well David we've we've done some work on that and it didn't get up to around four and a half percent.

And that's pretty unusual I think there's been for other companies since 1990 that have been able to do that.

And none of them stayed up there more than eighteen months.

Before something happened -- Cisco was there for.

Like two months -- that was about it.

But not but I think the thing with apple and when we look at -- would the other ones that have been up in that 4% club.

Apple -- cheaper than they -- when they were up there in terms of the multiple so the bulls have pretty good case but it is a little.

Disconcerting Glenn.

Everybody but everybody is overloaded snapple and you can see some on gotten out right now are you afraid though that there are gonna lose their spot.

All I think maybe eventually they will but I don't see it happening really short term and I don't think you better.

Mess around with changing the weight of apple in these majors because we've seen it before and eventually the market corrects that -- So if you look at the technology industry as a whole it's so interesting you mentioned how quickly -- the gates this market took off to start the year.

Really seeing a rotation out out of technology the biggest loser on the NASDAQ just this week.

Are investors now starting to rotate out of technology if they are doing that what sectors are they rotating into.

Well I think apple was the big champion there -- so an apple gets weaker I think you see the pretty much across the board getting weaker self.

I I wouldn't be surprised to see some rotation back to.

Maybe some of the health care issues again and I wouldn't be surprised to see some pretty big excitement in some of the small bio -- that are good acquisition candidates by the big major drug companies.

What about financials a lot of our guests have been telling slightly how cheap.

They like those valuations but there are a lot of risks there.

Well there are and the -- good earnings to them yes -- -- -- -- -- and there's momentum there but.

Historically banks have sold at about a 20% discount to the market multiple this is before they got -- -- these.

Other businesses.

In trading platforms and things but if that.

If the Volcker Rule really takes hold which is certainly questionable at this point.

I think that you could see.

May be some stalling in terms of the financials we're still long bunch of -- mean we think we're still there but we've been there for awhile.

And I'm getting.

A little bit nervous and -- -- Volcker -- there are a lot of other rules and regulations that have come in with this administration there's a whole new health care policy.

That could cause the academy a lot of money.

If there is a change in the because of the election in November would that change -- -- calculations about the markets David it well.

I can give -- my opinion.

But we go -- our numbers and our numbers are still positive on balance your opinion your opinion is about it for a lot of go out of not always I trust my numbers better than my opinion even my own opinions self.

I but I do think that we're probably headed for some.

Difficulty in the second half of this year and I think a lot of it is going to be related to the election.

This is going to be a very acrimonious.

Election and the money that's gone into this and you're gonna see it's it's good for the broadcasters.

-- yeah absolutely there's about.

Well I'll tell yet this is that we're all gonna be sick -- -- and by the time we get up to Election Day we're all gonna be watching.

What.

Some.

Well public television.

If -- -- -- mobiblu called group founder great to see you Steve thanks for him you're going back up to Maine now yes I am like tomorrow Barney yeah joy and a aren't.

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