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We now Bob O'Brien whose expectations -- argue stocks editor for Barron's.
Unlike Bob great to see great to see -- I can't tell you how many stock analysts I've had on -- say.
The markets tapped out if you've gotten into January good for you but if you try to get -- April it's too late but then you look at what happened and Amazon if you bought Amazon early today.
Are very happy -- -- -- can't stay with Expedia of course apple you see what happened there are so the market's not tapped outfitted in a lot.
Ways David the expectations of pessimism are not being realized -- we came into this earnings reporting season.
When people taking down their numbers saying.
We -- corporate corporate profitability -- -- swung only ten out of things like cost cuts.
On keeping wages in check not spending on equipment there -- services.
And you know the fact of the matter is corporate profitability remains very robust we're halfway to the earnings season.
Although -- I have to emphasize -- one of the reasons for that is because they haven't been spending -- on labor they -- -- -- -- they cut labor terribly support of the recession but they never rehired so that's one reason.
Why they have this extra cash and a better bottom line yeah I'm and it's also that.
You know nobody's getting ready so that's why you're seeing that things that are exposed to consumer confidence looking.
A little bit weaker but I look at -- market and I say this is what where there's a lot of pessimism out there.
The servings are saying bearishness is on the rise.
It's still a lot of money on the sidelines we've had something on the order of three trillion dollars will come out of equity mutual funds in in 2012.
That's fuel for another rally in this market OK let's let's drill down specifically within -- -- a because a lot of people like what -- -- -- -- of Amazon is trying to do with that company.
He's sticking to his guns by the -- he's selling products.
Very cheaply to try to get -- a very loyal customer base is that formula working well I don't think so David because I think the -- right now the stock is is really richly priced as if you look at it on a forward earnings basis.
So I wanted to fight to have and -- I wanna think about it selling it first thing tomorrow market manager 5657.
Times that that the future profits.
You compare that with an apple which is got a more dynamic growth rate.
And -- a lot more traction -- treating it like 1516.
Times so I you don't right now I think one of the themes you wanna look for in the market.
It's find some good.
Value stocks if you concern that the market may be ten.
You -- kind of tapped out and that the pessimists are you don't want to something right here.
-- embargo when you say value stocks are -- talking about apple right now hours at your riches well.
No I think Apple's a bargain right now at fourteen -- -- 607 bucks -- -- I know remarkable but look at the profit growth that they're putting up they're paid don't they sold 35 million iphones in this quite a lot of those were in China by the way they say this market has tapped out for their iphones and ipads.
But China's market is still growing and you know we're able to repatriate those that money back into the US with a more -- favorable currency exchange.
It goes right to the bottom line OK quickly growing at about thirty seconds tomorrow we get the GDP numbers -- we see how strong the economy -- When does -- economy the strength of the economy catch up.
-- what the market has been well probably not until the fourth quarter of the year I'm not gonna look for some kind of a blow out number tomorrow.
Fourth quarter we should be approaching about 3% GDP -- still you know.
But better than where we are.
Bob O'Brien good to see you -- David great to see you thanks for coming and coming up in.
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