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Have Money on the Sidelines? Where Should You Invest it?

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    W.P. Stewart CIO Jim Tierney on where to invest in this market.

  • Duration 3:27
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Re watching the S&P 500 it hit its highest level since may of 2008 today kinda snuck up on you did -- This is why you have to be careful never to short a quiet market.

My next guest says they're still quite a bit of money on the sidelines as some of -- -- he's got some ideas on where you could put that money.

And how to put it to work joining me now on a Fox Business exclusive is Jim Tierney.

The chief investment officer at WP Stewart more than a billion in assets under management.

What are you doing with her clients' money.

We're fully invested now we think that in selected stories there's still a lot of growth to go.

But you have to find the right places surprisingly the markets up 14% this year people think wow it's terrible -- 14%.

Everybody would have died for that number in January.

Okay where you fully invested in January were purchased were OK so this is a guy you wanna listen to because he was not afraid certainly but -- -- say -- fully invested is this equities small cap large cap.

Mid and large cap equities high quality growth companies and were virtually 100% and that -- -- What are you listening to what what should investors listen to.

The headlines that Willis to and and -- Warren talked about the come out of Europe or wherever or actual earnings numbers like the Urban Outfitters out there.

The one -- -- the toughest things about this market is investors have been so scared.

Over the last three or four years and they just haven't gotten over 2008.

Yet the results over the last four years have been pretty darn good so I'd follow the earnings I mean I wrote a piece to our clients it's all about the and to me prices right.

It's all about ten companies grow their earnings going -- one company that's all about the.

You know I think you TX is a great example united technology not -- technologies.

A little bit misunderstood from the perspective that everybody's so worried about their business around the globe.

And they have a whole bunch of businesses that are somewhat economically -- we should mention they make elevators they -- Sikorsky helicopters.

Security.

Airline airplane engines and so forth.

But -- synergies from the Goodrich deal alone from.

If realized and we have high confidence that they will be realized lead to 15%.

Earnings growth next year.

Even if the base business does nothing.

That's pretty interest in to us that and it's selling at thirteen times earnings right the time to have been scared if I'm hearing you correctly it was when everybody else was going knots and being very greedy and then the time to be a little more patsy is now when everybody scared when you have incredibly high visibility of earnings.

That's when you can get comfortable with some housing is always something that we look at two more were getting existing home sales do you focus on the housing market.

We do we don't have a whole lot of direct investments in the housing side but at the same time that's what's driving this economy if you look the manufacturing side that carried us the first.

Part of the year now housing really picking up here and we think that.

Between the low rates and in good prices on homes that still has a long way to run the Clinton huge interior looking at stocks to purchase and you're talking about look at the earnings look at all of the issues that make -- a really good quality company.

-- social media stocks we've talked a lot about them lately.

Our clients and and I own some Google and I think that's as deep as we're getting into social.

Yeah that's an Internet stock that went public a hundred years ago practically listen thank you and by the way -- coming right back.

To talk about what other companies he's buying right now he's got at least four names you need to hear about -- already gave United Technologies but much more coming up so.

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