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Bryn Mawr WM Investment Advisor Eric Thorne on why investors should be wary of the financial sector.
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This transcript is automatically generated
Stunning exchange.
Actually excuse me -- bring in Eric -- right now.
Eric Thorne is with me now -- said Eric my apologies -- gonna go to our reporter -- our reporter here just a moment but.
I'll talk about view here for a second because one of the things I noticed in in cutting your strategy right now is your.
Really avoiding the financials but -- the financials when they are so beaten down many folks will come -- the show the analysts and -- say.
Hey you know what does the buying opportunity -- us now.
Well it may look that way through some but I think you know what we're right about now is that it did the financials themselves are low for a reason there's a lot of uncertainty out there in the markets.
You get surprises out there like JPMorgan a couple of weeks ago the you know where there's smoke there's fire so a lot of these companies are still not performing the way we think they should.
And we're wondering if there's another shoe to drop in general in the sector and and that the international weakness it's out there.
Is very very scary stuff in the financials a lot of time for something like that hits they tend to be the first sector to get hits with all this volatility right now.
We may not be at the.
We'll is that what's happening -- Bill -- on that is where you're at right now manager firm and as are you guys kind of seeing that shift in thinking you think that maybe it would would didn't work ten years ago -- -- didn't.
-- -- what two years ago or didn't work excuse me yeah is not gonna work now we've got to be more picky as what you're saying I think I think that's true and a lot of investors have this mentality that if you buy good quality stocks and just hold onto them.
-- automatically make money and we don't think that's the case anymore.
We have to be very concerned about the market.
Getting overheated at times and also getting oversold at times and you know after the second quarter.
-- after the first quarter we had a strong fourth and strong first quarter the market was up.
25% of its six month time period it was time to -- positions -- so we had to do that.
After a tough may.
The market was probably too low valuations were too attractive so we start buying again this month and we think there's more room to go in this rally here in the next you know several weeks OK OK so there's room to go over the little little of a less pessimistic view -- we have heard from several investors say.
The summer's going to be flat potentially.
Negative also volatile I'm -- the volatile -- -- pregnancy.
It's it's gonna be probably very volatile but again there's opportunity -- that we're not traders per say that you can take advantage of the optimism and pessimism in the markets to trim positions back -- rebalance.
When things are high and when things get too low you know time to do a little bit of buying so we're gonna see a lot of ups and downs but they're still way to make money -- -- -- -- -- and -- managing six billion dollars in assets and middle.
