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Ralph Acampora, Altaira Wealth Management partner, and Lee Munson, Portfolio LLC founder & CIO, give their sector picks for investing.
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It did.
-- going to the market power.
They're taking money putting it to work joining us now -- are comfortable.
And his partner -- -- wealth management and early months of founder chief investment officer of portfolio LLC Ralph I wanna go to you first and for the moment -- of course politics plays it all this.
But you are very bullish and let's let's just drill down to one sector that you think is due for a pop some people say it already has.
But financials you say that we are on on the just that they edge of a big surge in financials.
Why do you think so when where should you put your money.
Well thanks for having me and I just want to say that historically.
Rotation sector rotation is the lifeline of every bull market.
And then the last six weeks we had this correction if you want to call it that it's been very shallow.
Technology came under an awful lot of pressure and the money rotated into financials.
That's meet shows that there is shift from growth to value that's very very healthy if you look at the -- Excuse me excel left the financial ETF.
We're on the verge of making a massive technical -- OK well we're doing -- center where he would -- -- -- god forgive me Ralph we're looking at -- now industry in the excel left is what you're talking about go ahead.
Yes in -- I hope you have a long term picture there because you'll see that the February 2011 high.
That's the peak of 1720 where within -- the very very short distance from that level I think once that's broken that'd be huge three year data -- -- -- I think the financials finally come to come to the floor.
And everybody keeps saying he can't have a bull market -- have financial guess what we've got.
-- -- -- What's your spin on this -- and whether its financials or another sector are you watching break -- levels -- not so sure that that maybe you look so closely at technical levels but.
What is it that you see.
No matter who wins that indicates to you it's time to buy and if so where.
You know let's let's bring -- -- I love technicals and loans to move stuff that route is talking about I use your real technical trader when I was younger even though I don't still yeah I got here but let's think about the look who lives in date lets lets think about this in more service rational narrative number one.
Capital expenditures would a lot of viewers here they -- -- -- like capex capex it's been weak CEOs.
Have to go back to work they've got to invest that money and now that we're gonna have uncertainty done with in another week -- so.
It everything all that uncertainties in the news they're gonna have to start spending to make money so one of the things I like is the cloud computing -- something like -- VMware.
Because they have to keep those workers that they have.
As productive as possible and I think technology is where they're gonna continue to spend their money now here's a thing them.
Productivity is as high he can't -- CEO they've got a call the HR person think we have to hire more people we know margins are gonna go down.
But we have to start making more money once we make this capital expenditures and you know what the people get a job.
They feel happy -- too good about themselves they're gonna -- many iPad.
And then what that feeds into is housing now some these housing stocks have been on fire if you bottoming a year ago kudos what a great trade that you made.
I think right now.
In in terms of the housing market and when you're looking at that I still in real estate investment trust are the place where you need to go.
Add that I think that that's that's that's good for the economy I look Caterpillar PG those big yellow things to move earth.
And start getting things -- -- -- is of those.
I'm here for more kind of yeah portfolio get -- gave us to work Bradley -- a lot of weight which VM where technology.
Let me get -- back in here -- -- way in which you agree with Li I know what's on Caterpillar.
I guess that's because you think the economy's gonna start moving.
Big time or at least more than 2% right.
Yes of course.
And the rotation was started to see -- mentioned the financials but -- said the industrials.
Caterpillar being -- -- or those of doing very very well.
So it is broadening out -- -- like that shift and -- look at how old well by the way you wanna buy when it's cheapen at least for 52 week profile it is cheap right now.
Yes and in the case and -- a fully SA has been a nice pullback and I think you're probably -- at a level where it starts to bottom out.
Ralph the last time you were -- and really -- if Obama wins this thing a lot of people are talking about the market selling off I think it's a great opportunity to go in the body.
Because whoever wins this election they're not gonna stop corporate America for going back to work -- on Wednesday -- but Ralph do you feel as I was saying at the last time you were here if you were very bullish on such as pilot -- deeper no matter who is going to do it critically on the.
Yes I don't -- the uncertainty will be out of the way they'll have to deal with the fiscal cliff maybe they kicked the can down the road we'll get past all of that.
Ralph Acampora and -- months and great to see you both guys thank you very much -- gentlemen.
