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David Sowerby, Loomis Sayles & Co. chief market analyst and portfolio manager, on how to best play market uncertainty with your investments.
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-- as many thanks.
So -- Nicole just illustrated forest the Dow is -- triple digits at the moment does this kind of decline give investors an opportunity to buy.
Let's put that question to David Sowerby chief market analyst and portfolio manager Loomis Sayles and company David welcome to you -- have you back on the show.
Money my pleasure thank you let me first get your take on why we are selling off today -- lot of people thought the worst was behind us -- early April correction.
But now you've got France in the headlines you have the Fed this week what do you make -- -- and where do we go from here in your -- Share it it absolutely it is.
A return of the Tug -- war.
The summer 2010.
The spring of 2011 the Tug of war between.
That the macro getting modestly disappointing while I think the micro specific news I'm getting from individual companies.
It is still making it better backdrop to be an investor that said.
We're probably it's in -- period -- gonna see anywhere from five to as much as 8%.
Setback in stock prices.
If you look at the average stock and when you get that type of environment.
I think it pays to be selective net buyer because this still feels like in calendar year 2012.
This if that'll be a twelve to 15% type of return for the market and with the price return any S&P 500 up 8% -- -- today.
It's still -- for stocks being one of the better asset classes this year.
So do you think it's only matter of time here before we start really focus seeing and considering the positive earnings reports and move away from you know it's such a headline driven market is we use the phrase selloff in many thanks -- -- -- and so will -- you know again as weeks -- wanna start forgetting or not forgetting but that really looking at the strength of the US corporate structure.
I think that will be the key that when you listen to the tone of individual managements.
That they're reluctant to give.
-- much positive guidance for the remainder of this year however when they talk about specific strength -- referring to North America.
Some pockets of -- Asia but less so earnings growth of.
Seven to 9%.
I year to date have been a 122.
Dividend increases this year that's the -- number I've seen in more than ten years.
Actions speak louder than words.
You're gonna see 15% dividend growth this year yet the macro uncertainty will linger.
But admit that I think -- I think -- individual company news will prevail and that's what gives you a better a better view I don't know what's -- this year.
David I mean it's definitely a tough environment out there the only way you're gonna make money is by picking stocks well so what -- your picks in the end you know how do you play them.
Sheriff a few names in and it in a place to bet that dividend -- Comcast.
Bennett at good performer this year separate than 20% their marginal growth rate in their dividend is better than 35%.
That that that I think -- -- micro -- for worry is gonna see opportunity this year and it is companies with above average cash flow growing their dividends.
Superior business model and an environment where correlations -- the clients.
Is for individual investors look at a chart that -- -- about 2% today we -- picking up today's at a discount.
While if if you're you know today ear -- the balance of this week I think it represents value to the investor because there's still a look a level of uncertainty over the long term health -- Comcast and I think that the company represents value.
In addition of that.
If my view on -- capital markets is correct and I think Franklin Resources out Franklin Templeton represents value at about twelve to thirteen times earnings.
And they're growing their their business they're evenly split between -- their stock business in their bond business.
And they're growing their assets between 45%.
In its -- and it's I think it's it's good organic growth.
And then on the tax side little smaller company but -- I think that represents a value.
That's FactSet.
Data systems that.
A -- a lot of business with asset managers such as mine.
And they're growing their dividend like.
Like gun -- Franklin Templeton is better than 20% I think those are all great opportunities in different -- where David macros getting the best of us.
Hey thanks so much -- -- -- for your I might point out.
