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So expectations earning season -- too low but our first guest this hour very -- specifically about top line growth revenue numbers less than 50% of companies meeting -- estimates in fact.
Is now Scott -- -- new V portfolio manager Scott.
Great have you back so -- Americans I -- -- -- -- surprised -- it where we aren't earning season performance that's far.
No we're not not at all I know we we believe that.
That earnings will be challenged we believe -- the outlook is subdued for the world economy and the stock market.
But we think that's a great environment for growth stocks because they're gonna come through with the revenue growth and -- undervalued.
So would you characterize then today's -- stock and you look at Microsoft Cisco to the big mix a -- people are saying that that's kind of a new.
You know our screen for growth stocks we use we call -- exceptional growth companies.
We need growth on the top -- higher than 10% so that's what our definition.
And in fact do you think their earnings are grumbling and then it's one of the main things that investors are focusing enough on right well.
We we think that the top line will be challenged and therefore growth companies should be valued higher than they are they're undervalued at the moment.
You can see leadership in the market has gone all the way to safe companies in dividend paying companies.
And there are a number of strategists it in our own internal -- teams have.
Calculated that the valuations.
Are very cheap and growth stocks so we we view it as a coiled spring really.
When the market realizes.
How attractive these companies not so where's that opportunity.
Well it's within that within our portfolio if -- gladly.
Yeah well in AutoZone and -- Smart and Ralph Lauren in Priceline companies like that.
Are gonna come through with their earnings.
Their their multiples have been depressed.
Because at this time.
Early and earning season the market's very nervous about -- These are you -- -- dependent on the consumer that makes -- -- little nervous because we still have such high unemployment consumer confidence is low.
The -- The interesting thing about the consumer is that the by and -- the consumer is flat ish.
But there are segments within consumer spending that are growing and and then the names that I mentioned.
Are all healthy in that regard you know when you look at the overall earnings picture against the backdrop of strategists were looking for the second quarter earnings.
Reporting season to be one of the positive fundamentals for the market to sort of -- it while it deals with these stress of the geopolitics going on right now.
In addition to our own fiscal -- -- -- -- if you will so I I'm curious if you think that because you're concerned about revenue growth if we can't even depend fine.
Corporate earnings for -- the health of US corporate.
Well you know corporate margins are at all time peaks and so if you don't have top line growth.
It's going to be hard to generate S&P 500 earnings so back to this valuation I discussed earlier.
The growth index is trading at fifteen times the S&P is trading at thirteen times.
The growth index we think will grow 15%.
The S&P might grow 5%.
So what does this -- -- market performance but what do you think -- -- the end of the era we.
Flash but we think that you're gonna make money in growth stocks and -- you know in our strategy that we're offering to customers.
Because those will be re valued upward.
I've got think that strategy.