This transcript is automatically generated
The Doug -- -- senior market strategist for -- NG investment management thinks so and he joins me now with a look at where he's putting his money to work right now doesn't you know you have been extremely.
Bullish the past few years my question is if someone hasn't.
Jumped him by now are they gonna miss the train.
Now there's still tremendous opportunities and I think there is unwarranted pessimism out there what's not commonly understood is that.
By the S&P 500 is having its best year since 20032.
That since 1998.
Well we -- investors need to accept normal volatility.
Get in this market -- yet.
To be paid handsomely.
For the rewards.
You say pessimistic but yet we still have what appears to be a slow down in Asia China official or in the European debt crisis.
Just seems to be hanging over -- thing ever of these -- is Tom do you see those problems fading away it was ignored -- price stint.
I think is excessively priced -- there's always bad things going on especially in -- -- -- now we had some bad news in Japan and China.
But we have to look at is -- is a real level of global risk compared to where it's priced in rate now at this price is way too high.
And what's happening actually see that fixed coming down to a fourteen handle today.
Is that as volatility comes in isn't it it is saying.
Stimulus for -- market to continue forward.
But also all -- -- to look at fundamentals.
Fundamentals or another are catalyst for growth for this market to continue to really have a double whammy for this market to continue to go.
And it's still very cheaply priced.
But you know what we've heard -- from a lot of cut corporate managers who would give -- a pretty cautious outlook doesn't that -- give -- polls.
Well look at corporate profits because that's been the big positive surprise were on our.
Twelve consecutive quarter.
Record profits we are actually an all time record high of corporate profits in first and second quarter.
And that's why the growth level is slowing a bit so where at the second quarter were almost all in right now for the our reporting season we're at about 6%.
But consensus was around 2%.
So we're about triple the consensus.
And that's -- corporations continue to do.
They surprise on the upside in this is just a normal trajectory.
But Doug I still think investors -- court to little bit they want to jump -- on the rally but this still is very much headline driven these days especially out of Europe and I think investors perhaps worried that.
They jump in and and the markets take a big tumble.
Right and that's exactly you -- right its headline.
And what we try to do is separate fact from fiction and the facts on the ground say the fundamentalists -- not just corporate profits.
But we -- manufacturing -- we see consumers broadening we think consumers that 70% of the economy is the game changer.
Look at tomorrow retail sales were starting to see.
Strong back to school numbers that's just getting going -- we think the consumer will be that big surprise going through September.
Well I think in the last two months we've seen a lot of money going into the defensive.
Sectors utilities telecoms and so on Doug what are you telling your investors.
Broadly globally diversified.
We light global -- we like global bonds so both on the fixed income and equity side you need to -- except risk assets.
And and we call that the risk GAAP investors don't own enough risk recall that a gap there exposing themselves to upside risk.
And quickly is -- target for the S simply 1450 is that right.
Actually fourteen point 85 with a 105 earnings for third and -- by the end the air I it and they might be volatile but we'll have fourteen point five.
And still that's cheap on the market sell would -- -- to investors.
It's not too late.
It's time -- getting every day's good -- begin in the market during a bull market back.
-- love your optimism dot -- today -- thank you so much for joining us we appreciate it.