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Joining us now Charlie for -- -- he's aerial investments director of research along with Ralph Acampora Altera wealth management senior managing director.
Up at Ralph fall -- you first because again we saw some bullish moves over the past year -- and so with that in mind.
Do you feel that maybe the time is now to take some profits or should people still remain at all in stocks -- -- make -- a little nervous.
Full disclosure on my part Liz I'm very very -- -- I think and out.
We had a -- we start of the summer rally in June right on time.
And it extended well through July August into September.
There's nothing wrong with the summer rally in fact.
I'm always encouraged to listen to a lot of negatives because -- -- people don't realize that the Dallas less than 7% away from an all time new -- And people are still negative and that that combination makes me extremely bullish.
While Charlie you're not you're not negative but you worry your little more cautious I think it's fair to say than the last time you were here is -- right.
Yeah that's right we're value investors and we actually take the opposite side of were just talking about when things go up a lot we get a little more cautious not -- optimistic.
And the stock market is run a long way its run about 25%.
Since a year ago a year ago stocks were extremely cheap and we were pounding the table.
Today I'd call them fairly valued to slightly -- so we'd be cautiously after.
Well that's good point Ralph I mean things have the PE ratios -- gotten a Little Richard they work 8978910.
Maybe now you start to see -- and fifteens and seventeens.
And it makes -- -- Yeah but it's -- you're not talking about excessive numbers and what about you get a multiple expansion -- -- dust ago I'm telling you this it.
The action of the sectors in the last couple weeks you get -- technology coming to the fourth of course have health care.
Just in the last couple weeks she had the financial stocks.
And the -- you need to look at just like the way I -- they're just starting -- -- what's another -- -- look at a lot of rough when you look at a chart of the stock.
While I as I mentioned before the this summer rally well let began in June but he had -- June and July exit three almost four months.
What we call in the in the trade -- a bottoming period based billing period.
That sets the stage for a very very handsome upside -- and those moves have not been completed yet.
I -- well talking at least -- the ten to 15%.
Charlie what if if I were a little more cautious and I have been about this market -- would probably be more cautious about financials.
But you say no in fact -- of your picks -- you brought to us our financial State Street.
And Northern Trust why do you think the financials will do well even as you move into a more cautious period.
Where they are one part of the market that debt is still cheap -- you have stocks like State Street Northern Trust there really have gone nowhere for four years.
People live side not bid up the stocks because they don't tend to do well when interest rates are very low that it can't make any money off the -- customer cash positions.
So long term those are very good businesses that aren't gonna do well on the short run because of interest rates but longer term there is still good value there.
I'm -- for you one of these.
That's crazy people who are crazy for dividends or is there something more attractive like for example cash flow that you love to look at.
Well not a high dividend and that's again probably one of the main reasons why be large cap.
Stocks have done so well and continue to do well so.
This a lot.
Of attractive things out there I think -- many of us adjust.
Deer in the headlights when it comes coalition -- especially know this is terrible it's the month of September and October we have a terrible time.
I think the mark contagious backing off waiting for the Fed this week and I think it's going to be very very accommodating.
Charlie the -- -- and Ralph Acampora great to have you both on thank you so much for joining us can we have some breaking.