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RBC Private Client Research director Janet Engels on what she looks for to protect her investors’ portfolios safe.
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Experts what market indicators what what piece of data what -- -- they elect to watch to guide them in their investment decisions.
Money clues if you will -- my next guest has an answer that could protect your portfolio from unexpected surprises Janet -- inspections RBC wealth management's private client research director and a Fox Business exclusive.
What are you look at.
We look at the economic surprise index as one of the many different things that we look at so what is the economic surprise index it's basically measuring the difference.
Between economic data and the expectations.
For that -- up.
And what we specifically look for easy inflection points returns in that for an example back in January of 2012.
The economic surprise index rolled over it actually preceded a peak in equities in April of this year.
And when you look at the economic surprise index right now it bottomed in June just about the same time that we saw -- bottoming in stock prices.
-- use it for a couple things helping to to turn look -- -- in the economy.
Ended -- most specifically we look at it very short term -- saying this was just a soft patch not the beginning of a concern of perception.
I -- so it measures how strong with the data will deviate from the actual expectations.
When the data start out doing outperforming expectations is at a time to -- -- -- I'm just trying to clarify for so you'll wind it wind it.
Yes it is a time to consider jumping in it would be one factor that we would consider that expectations.
Have gotten so low that we are seeing -- -- -- perception of -- -- telling you now.
What's -- tell us now is since it bottomed in June and it is turned up in it'll probably crossed over zero -- it has actually today that.
Quite frankly we think that stocks are going to continue to move up.
Throughout the fall because we see the risk of recession.
As being very minor sluggish and slot economic growth but not a risk of recession for awhile those stocks were looking so -- you -- PE ratios of 8910 now it's more like 1213 seventeen.
Can you pick stock.
Before we go to commercial break and then we're gonna get more from you that fits into your parameters right now we like SE PS -- would be an example of an information technology company companies in -- competitive environment are incentivized.
To buy a equipment and software to improve their productivity SEP is an enterprise application software company.
They are global you're seeing increases in license revenues.
They have delivered earnings growth from a spectacular perspective consistent growth we're looking for twelve to 13% growth this year.
Next year.
And the multiple is below its ten year average -- up 33%.
Over the past year this is -- -- by the way we've covered extensively here and they keep coming in with record earnings even during very tough economic times Janet's back with more names.
Coming up more stock specifically --
