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Keith Wirtz, Fifth Third Asset Management president and CIO, on the recent market rally and how investors can cash in, even if they’re late to the g...
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Says you should be cautious if you're gonna buy into this market -- works is president and chief investment officer for fifth third asset back to -- Friends and joins us now -- Thank you for joining us out of if you -- this rally boy -- know you know -- -- about it but what is the biggest threat do you think to the market right now.
Well there's so much chatter about the QE3 announcement of last week.
If you look back the last her for months this market's been moving in in advance of this in his announcement.
From the Fed in fact I think the markets have largely discounted what we all expected last week as we stare -- come before look now we've got the election of November.
We have the big fiscal crisis in Washington DC later in the year -- in the 2013.
There's just a lot of news right now coming out the marketplace -- -- go forward basis and I think.
Given that rally we've in -- last five and six months maybe now's the time to take some exposure off the table.
-- a good point I mean does the market need a reality check the very fact that we have QE3 suggests that the economy isn't you know weak enough that the Fed wants to give it some extra help.
Com so really -- overbought and due for a correction.
It feels like that's me technically you've got the majority of S&P stocks trading above their.
Fifty day moving average in fact I think is something like 85% of the stocks are trading above that technical indicator.
It just feels a little tired to me a little worn out and I think it's due for a pullback of some type.
I think there's only a better chance for investors to buy stocks maybe a lower stock prices this -- closer the end of the year so if you buy on the dip as you suggest what areas do you like.
If you missed this rally is frustrating I think one on the F -- -- wanna have size on your purchase program would be quality.
We like companies that have good stability of earnings right now we're looking for companies -- a good dividend policies his strong balance -- conditions.
And there -- two stocks that I like in particular one that I've recommended on the show on the past.
National Oilwell Varco from.
Today and equipment provider that offshore drilling segment of the market place and we think it's an excellent company a great way to play they were -- the recovery in the globe global oil markets.
And on given the valuation when asked not too expensive we think it's a nice way to play this market place and another area is in the health care sector.
-- -- would be Pfizer in the pharmaceutical.
This is -- is head and you see you CEO come a place he's return their focus on cost containment.
They've got a great R&D pipeline in the stocks trading less than eleven times forward earnings and so to us it looks like a great quality Stockton might be a nice addition to -- portfolio.
How concerned die UK -- corporate profits certainly that's showing signs of faltering we had a very sobering outlook from a FedEx today have much of -- concern is that for years we see the global economy and its weakness really starting to hurt corporate profits.
Well I'm very concerned -- look at second quarter results and they were issued last night July.
Revenues in fact were actually negative and so top line growth has gone negative.
We think Q3 earnings which will be announced in about 23 weeks -- from the season kicks off.
I'm expertise -- may be modestly high.
And I think this revenue growth or lack obvious is indicative -- of economic slowdown were worried that.
We're too close to recession condition.
And that's another reason why -- a little cautious this time yeah understandably so thank you so much -- what's a fifth third asset management K thank you so much.
