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Rob Morgan: Invest Now!

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    Fulcrum Securities CIO Rob Morgan explains why you should buy into the markets.

  • Duration 3:12
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-- -- much investors -- awaiting the jobs number tomorrow so that's where we're gonna talk about today because our next guest says no matter what the outcome is.

This market the market in general just too cheap to pass up -- Morgan -- chief investment officer at fulcrum.

Securities he's here with this -- studio lot of people would say boy.

Last year we were going great and something went wrong Lawrence is talking about the French election maybe -- something in Europe but you say no by no matter what.

Yeah why -- there's certainly a possibility this could be another head fake Connell.

As you said -- will last year even a year before we had strong job growth tapered off and and and who -- you know the ADP employment report.

Disappointing yesterday in my right for pre staging that thinks this number was pretty good but -- 14 -- let's just take the S&P 500 because that's we talked about a moment ago it's obviously.

A good gauge of the broader market we'll bring up the S&P right now it's at 14100 -- Make the -- case to me.

You see it even if the S&P 500 doesn't grow earnings at all this year and even even most bare save there will be some growth that's fourteen times earnings and the historic norm is fifteen and a half so very cheap and some would say a low inflation environments like we have now for it it can sustain twenty times earnings for years at a time I'm.

I'm not going that far right but the stocks are cheap.

The S&P 500 even even with this consolidation that we're in right now -- is technically sound its above its 5200 day moving average so.

That this consolidation could continue for some time but but boy it sure looks cheap biggest worry though would be what what would throw you off and make your wrong well.

Europe is certainly something and -- hand -- longer term.

Infliction of got to keep prion inflation running short what are addicts -- and we've been saying that for years like.

Well they're step because are still so much slack.

In capacity so so we haven't had this inflation problem but the Fed can't take their ride -- all right let's talk about as you look at.

Europe and the percentage of -- GDP did that they're talking about the -- big problems over there but let's talk about.

In terms of the stocks that you like and you don't on -- obvious -- person that you like stocks.

-- industrial group like -- And you like some of the financial like Bank of New York Mellon -- why it is those wire those to type of groups people should be looking and well well front from -- from an industry standpoint industrials and financials.

Once again -- very technically sound.

Cheap sectors.

-- but we're seeing better than average earnings growth for both sectors going forward.

As as far as individual names scale Danaher.

You know there there are great organic -- -- burnings and that great products but to viewers are recognizable name would be craftsman tools but there were great acquisition company as well sell they sell about sixteen times earnings just barely above the market should grow 14% a year or so.

That's the case for -- Bank -- New York Mellon.

I recently went to an upgrade on on financial some some -- Sam may be being brave there.

But I think the technical improvement we've seen has has is saying the market is telling us that these balance sheets which are not fixed yet.

Will be fixed by 2013 -- fair enough robbed and you know we'll bring you back to see if you're -- is this tester -- -- -- -- -- -- -- -- -- -- Morgan from fulcrum securities thank you very much covered -- as we head over -- today to.

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