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South Texas Money Management President James Kee on the need for investors to stick to an investment plan and not make too many changes based on the l...
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It's coming out of Europe and China investors may actually be tempted to -- cell based on these headlines from our next guest says though you might make it a big mistake.
Could -- miss out on a big a rebounding Jim -- with this finance chief economist and president of south Texas money management here with us.
You know -- thing I think with the headlines is it.
It promotes apathy -- there's so many different headlines coming at people they stepped back and they say we don't we -- played this game well.
Actually I think -- as far as not playing the game I think.
The best thing for them to be to do would be to step back do nothing by far the biggest danger -- a lot of things to worry about their but the biggest.
Concern is that will make investors to active that they'll start turning airport for others are getting in and out and moving away from their investment plan changing their asset allocations and no regret that later.
Said to -- is that the key to this not to be out looking of those headlines out of Greece have -- Spain have anywhere crowd around the world.
And just make sure that you properly diversified in your portfolio.
Absolutely that's why you have an investment plan in the first place is now haven't certainly like this if there was -- -- certainly could pick the best asset class and right now.
The same time those headlines could offer investment opportunities to -- we get headlines about emerging markets we get headlines about well.
Maybe to drachmas coming back and maybe there's opportunity there for people.
A -- right as long as you remember that you know with the with opportunity comes risk sell.
Generally when you're when you're trying to take advantage of those sorts of big macro bets you're taking a lot of risk.
You can still you can still kind of leverage the global economy by staying with your plan that.
I wouldn't try to get in and -- and and read macro tea leaves too closely -- -- I'm thinking to be done -- so with that in mind what sectors -- like him.
Well if you look broadly at -- sectors that have generated nice cash flow over the last ten years and -- you know under performs total shareholder return wise technology just jumps out it probably has.
The least -- -- it as far as all the other sectors ago.
At south Texas money management we like -- growth stocks and value stocks not either -- there's good ones in technology on the growth side.
You know we like EMC global data storage management company that's kind of tapped into.
Move towards utility here cloud computing on the value side Intel's you know world class semiconductor manufacturer that's.
Just a stellar company that's cheap yeah.
One of the things I think people worry about to -- you know.
Where I want to too much in one sector as well you know you talk -- he also mentioned Stanley Black & Decker and Staples we got a little I guess consumer Staples in there as well yeah.
Staples is -- great company it's the world your business supplies.
Retail leader.
But it's also the second largest online retailer in the world record on Amazon a lot of -- -- -- that that it's a good stock it's cheap it's trading at -- pressing cash flow.
And it's what our core hole core holding -- one of the companies were having to.
It's a given in yields can't let but pencils and white out.
Michael I think it's a fact my daughter's fascinated with White House is it still around the leading candidate Staples -- yeah.
Quickly Jim would you buy FaceBook at this level right now way -- of its offer price of what point Saint Louis is a -- yeah I can't imagine adding anything -- the -- Canada says.
I I wouldn't while I don't really like IPOs like I think that's more crap shoot them and -- an investment.
They -- the peer reviewed literature -- it right.
Well we yeah I find my family -- -- got a MI and -- and it didn't KS sat text mining ended banking yeah I think that they don't face the.
