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Zega Financial co-founder Wayne Ferbert on why he sees a market pullback ahead and where investors can still profit.
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So much Jeff thank you my first -- now expects markets to pull back in the next three to six months but he says yes you can make money by investing in companies it up.
Bucking the trend and spending money on research and development to joining me now is Wayne -- but co-founder principal -- -- financial Wayne thank you for being with us.
Okay see you don't expect the markets to gain a much more -- -- ground over the next three to six months of my question is why what's that based on.
-- what's the best course for the investor.
In that scenario.
Well I think for the next three to six months are gonna see profit takers try to step in there's been too great quarters in -- -- And I usually after -- -- to record as of 10% plus growth.
There's tends to be a pullback at beginning excuse in terms of missed earnings are bad news out of Europe or even -- economic indicators in the US.
You're gonna likely see some pullback.
But I think if you have a good three to five year horizon you want to be in this market the market's gonna I think be higher a year from now than it is today.
So I think maybe you wanna lay in wait for some pullback to look for some chance of the laid back into the market in the next three to six months.
But I wouldn't be afraid to wait and just maybe look for a couple pullbacks.
It's a chance.
All right your company -- told a stock screen and found three companies that you think are actually pulleys to gain market share and growth the first one of those Vistaprint what you like about Vistaprint.
Yes -- Vistaprint is a printing company and you would think -- coming sort of sounds dowdy but it's actually one of the most technologically advanced.
Pretty companies in the world they run web sites aggregate -- orders and then and then -- process and do that a consolidated back and they've been a tremendous growth story our revenues have tripled.
More than tripled since 2007 our earnings have tripled they've actually invested in research development at a faster pace than they've grown there.
-- they grow their revenues and I expect that the payoff in the in the in the coming years you know these stocks to trade at a discount to many of their peers.
I think there's a buying opportunity specifically today they announced earnings yesterday I don't think the market understood the earnings to -- digest -- the very well I think the thing investors just need to know about Vistaprint is.
They continue to grow tremendously 20% earnings are 20% growth in revenue trends and growth in customers over the same quarter from.
Four quarters ago I think that's the story I think they'll continue that trend -- of and I -- interest -- growth story.
Next company out connect here this is a networking equipment make reported Wednesday after the close is up so while some 15% since that flows.
Why do like this company what's -- play.
Yes so Netgear is actually double its revenues and in the last two years and -- it's just it's riding the back of a growth of Internet and have voice over IP.
And video to the home you know it's the provider of Telecom network equipment to the end user at -- how many of your viewers probably have some of their equipment.
In their home and if you believe that the Internet and Telecom is gonna continue to grow which I think is a pretty safe.
Trend bad for the coming future.
Then they're the kind of place you want to invest and they'd they'd beat earnings on the top line on Wednesday defeat of on the bottom line and they did it while keeping their profit margins stable.
Which means that they've invested in Smart products are able to still extract the same brands.
Either products before I don't see them at your stories slowing down -- very we got about twenty seconds it -- trend this is another -- Telecom networking equipment making a deal like this why which we do it's gonna continue to grow on the back of Telecom growth.
It's it's just it's a Smart -- doubled over oh awesome double its revenue last four years is just.
It's gonna -- for the same reasons that neck -- program.
Very good indeed great stuff free stocks poised to gain market share and grow while waiting -- of -- -- financial thank you so much for sharing -- -- with us today appreciate it.
Thanks for.
