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Fort Pitt Capital V.P. Kim Forrest on the outlook for jobs and the economy and their impact on the markets.
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Consumers of them pulling back lately even -- gas prices bomb so is this a sign that Friday's unemployment numbers will be worse than we expected.
Joining us now with her.
-- -- -- vice president and senior analyst for fort Pitt capital.
You know -- in addition to all that we had -- manufacturing numbers out today huge collapses in both orders and prices paid.
And this doesn't bode well -- it.
Now.
-- it really doesn't.
You know the economy to date has been kind of tracking a line.
Doing a little bit better than last year and these numbers.
Yet both on the you know industrial side and on the consumer side there are troubling to investors and they should be.
But you're saying still be patient right that things are not getting worse they're just clearly not getting better.
Well you know I can't tell you it's.
Gonna happen in the future but today the numbers that we've gotten have said that things are just kind of muddling along.
And that's you know as investors that's -- we can do is look at those facts and make some decisions.
Again I always reiterate -- that if you have money in the market it really should be for three to five years out so what we're doing now is looking for.
Good that.
Good investments that might pay -- in three to five years out so it might be attacked by.
Can you say you know banking is not gonna be better in three to five years hot.
Well it's very difficult to see what is going on in a bank you look at their balance sheets and tell us they're very very opaque -- not really sure.
That what they're saying the work of their balance sheet is really there so that's why we're passing on that whole sector.
-- -- a lot fewer than talking about tech hoping tech I guess pulls us out of this.
I don't know you can you -- it -- believe.
I always believe in -- it's probably because I was a software engineer one point in my life.
So I eight I kind of understand I absolutely understand why businesses by -- The -- is the thing that gives businesses and individuals productivity and I don't think productivity is ever gonna go out of style.
-- though -- I suppose is part of the reason why our jobs numbers down isn't it technology replace a man.
That really is an even in.
You know probably thirty years ago we didn't believe this could happen -- that robots really have taken over that the floor.
Manufacturing.
Facilities so yeah it's good and bad we'll pay you know cars are better for paying -- for them but less people are needed to make them.
-- and -- -- -- have money to buy them.
Melissa about the one -- you do like Joy Global listen Charles -- favorite to hear.
Fox okay.
Well when we're picking stocks are defined.
What we do -- we like to look at out of favour stocks and right now industrials are pretty out of favor.
And in particular Joy Global is very out of favorite -- from earlier this year and I think it's one of -- top ten.
Stocks that you know -- -- -- the far this but again looking three to five years out we think things are gonna be materially better for -- global.
-- they have very long time between or when you order and when you deliver it so that -- gives that time for the economy -- -- This is it's time during my accompanying this is a -- -- -- -- this a China plate really only heard that China's PMI didn't come in like we wanted it to.
Stock down 30% over the last year you still like it.
Right.
And again because of the long cycle times but there's other parts of the world that are developing -- on the front page of today's Wall Street Journal.
There was a big article about how India also makes -- And oil so you know that's their economies of the world get better.
They need their energy and Joy Global can help them get to it.
And India's PMI actually came in a little better than expected Kim farce of our Pitt capital thank you so much for being with us.
Thank you for having me.
