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Surevest Capital Management CEO Robert Luna breaks down where to put your money in today's market.
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Is deja -- for US markets headlines out of Europe derailing stocks here once again my next -- expects is continued volatility will be hard for the average investor to stomach -- what really for that matter but.
He has one healthy literally healthy stock play for you to add to your portfolio joining me now Robert Luna.
CEO of sure best capital management Robert -- tighten back.
We do more alert irate so what is your taking -- -- -- look to Europe blame them for our US us stock -- -- anymore to -- -- you.
No I think that's about it I mean we've been seeing this thing going on three years right now especially during the summer.
When you get this low volume markets easily pushed around I think it's just more of the same -- I -- -- investors need to continue to focus on the basic fundamentals of the market.
Yet what do you mean by that exactly to really just an -- we just be protecting what we've already -- is there a way to make -- profit.
-- you know what it is -- I think I look at everything from the perspective of our clients are people who are in retirement.
We're nearing retirement and they're looking at their portfolios a source of income.
On the idea of running into treasuries right now that are paying one point six per son.
But most retirees really need at least four to 5% we find our practice to support the retirement.
Is just a dead end right I'm hearing we're -- -- here.
Yeah absolutely not and I hate to sound cliche -- everyone's talking about dividend stocks right now.
Bob and it's just reality that today's retiree has two and phase.
But what you want to look at is not necessarily just search in the market in fighting the highest yield because we all know that -- blow up in your face.
But finding stocks that had a steady dividend consistent history of paying an increasing that dividend.
And because they are stocks not bonds he should also be looking for stocks that have a catalyst for future growth.
Our give me an example I know he gave us a heads up that you're keeping a close by and Johnson & Johnson a very strong and steady dividend player fits the bill now.
Yeah -- absolutely fits the Bill Johnson Johnson very stable company.
They've consistently increased their dividend for the last decade now of the company had three drugs that were recently approved that we think are gonna help earnings out short term.
But looking out over the next three years what gets us really excited about the stock.
Is there's ten drugs in the pipeline including a couple Blockbuster cancer potentials.
One for alzheimer's so there's really -- nice catalyst there.
While you're waiting for all this to come through -- also collecting a dividend that's close to 4% right now and that's going to be a lot more in sync with what retirees are looking for for collecting income for their portfolios.
Is Johnson & Johnson faring.
Is it all vulnerable to the outcome of the help -- care ruling -- Supreme Court that we're -- anxiously waiting for.
Yeah I you know I think in the short term -- could treat to see a trade up or down either way depending on that ruling but it's not nearly as vulnerable as like an insurance company.
It's not gonna have either is is large of the benefit is maybe like a Wal-Mart our company that's paying health care.
-- offer you know thousands and thousands of employees they might see you humbled and more of a pop.
-- we like about Johnson Johnson very diversified pharma.
Obviously medical devices and consumer goods so.
We don't think it's nearly as vulnerable a lot of people are thinking but if you do you see it trade down on that will be an opportunity for investors to step in -- House today it's down about 5060 cents a share wanna live on -- -- because last year on at this Robert.
FaceBook is trading around 36 dollars and he said use -- support in the mid twenties and lo and behold it.
Came off a low of 26000 -- so what's your act take on FaceBook today.
Yeah adding trade case -- now read right around thirty wanted so yeah we just thought looking at the stock I think it was about 36 when I was last Don.
25 you'd probably see some people stepping up stock then trading about half the valuation of the Google.
You saw that as a short term trade.
And I thought that -- -- 5050.
But this is a stock that we're avoiding right now we want to see.
Its first earnings report as a public company you know earnings have been decelerating so we just don't see a lot of fundamental reason to jump into a stock especially in a market like this yeah I if you look at names like Johnson Johnson -- holding up relatively well today these high flyers are getting beaten up or we're staying away from.
It's Robert literally appreciate your advice are gonna consider it seriously thanks again for joining us today thanks.
