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Brian Angerame, Clearbridge Advisors portfolio manager, on new housing starts and why he believes a housing recovery is underway.
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-- you could argue really that the -- help that.
And with the latest numbers that it rose to its highest level in more than four years and my next guest says the recovery in housing is just getting started air ago.
You should be investing in it right now Brian -- -- is the clear bridge advisors portfolio manager he's joining me in a Fox Business exclusive.
So it's not too late because -- look at somebody's home builders and -- run ups I think others missed it.
No no we're just getting started I feel can -- is actually because it just felt like.
A week or two ago there was serious substantial debate as to whether or not the housing market had you know really the recovery have even taken.
You know hold in now it seems.
The -- everyone's change their opinion in these stocks have run too much in we've missed that bullet.
They change their opinion because we've we've got a couple because they don't know what is strung together showing met or even minutes finally it's not so awful.
Well I think about it -- -- number today points during the estimates are gonna take new home construction to have maybe 758.
May be as high as 900000.
Right -- We got as low as I believe 300 you know on a run rate of about 25300000.
Homes per year and based upon population growth we should be building and and and household formation we should be building between one point two and one point four.
So thankfully over the last few years we've we've taken the time to absorb a lot of the excess supply that's in the market and now it's no.
Should be no surprise that we're building.
Some new home.
-- -- what's the best way to play this decent recovery because you're saying it's in the early stages it is it is some of the homebuilders have run up a little bit more than others.
I'd like everyone.
To think about maybe some of the building products companies.
And some of the companies like -- like a Whirlpool for instance which is one of the world's largest appliance manufacturers.
A company like Mohawk one of the world's largest carpet and flooring manufacturers.
I mean -- I don't know did talk to your friends is you know when's the last time anyone product a new washing machine or or replace their.
They're corporate -- their house right been a while so while so the cycle is getting ready to you got some and you got some pent up demand and as jobs continue to improving and in consumer confidence improves -- happen.
You know art -- desk.
Genius Charlie Brady pointed out to me that a dozen or so home.
Related companies exactly what you're talking about are hitting multi year highs and he's talking about means.
That we talked about that suddenly got big bumps around the hurricane like Eagle Materials.
Waited to so well because people thought your gonna need those materials but.
Newell Rubbermaid Whirlpool of course is he mentioned lows Sherwin-Williams -- -- that are hitting multi year highs so fat doesn't sell people.
Do you think that they should go for the individual names -- you've just mentioned.
Blip in demand because you've got to repair homes and in New Jersey remarks but the reality is you're talking about a multi year -- but.
This market sold off and bottomed in 06 so we've got a long way to go.
Let's talk about the funds that you -- you miss the good let me some clear bridge mid cap core and mid -- growth -- -- performances for both of diesel pretty healthy to me as we look at whether it's just that year to date one year or three returns from them -- up on the picture but for at least the mid cap core -- got a year to date up nearly 13%.
Three year up 11% of the growth this year to date up 14% one year up 18%.
The names that are in here for example what is it that you do when you're picking a mid cap name what is -- really mean to you.
Mid cap is well it's kind of -- goldilocks.
Of the asset allocation model right it's not too big not to small.
You not a super mega cap that's having trouble growing but then you're not you know riskier small cap.
Company that may be is relying on one product or one company -- my business thanks so they got clinic capital certainly.
You know greater access the capital than some of the smaller cap names you know better balance sheets not quite -- isn't quite as big as like an IBM Princeton one.
You've got Casey's General Stores what are your favorite names and here's the goldilocks.
Picture of the mid if you look at -- -- Okay -- all your friends from college are -- com.
-- Steve Fox Business doing there but I'm.
Have some fun here right but but it at Casey's General Store which is one of your picks in here.
Why -- Yeah there the Casey's in the very stable business they sell gasoline and -- and cigarettes and all this kind of stuff all throughout.
The midwest and occasionally get a period where they're -- Europe again construct comps -- there gasoline margin all on track.
Right in so occasionally you get.
A period of time -- that the fundamentals don't look as strong as they are.
In over longer periods of time in this is a very very stable business and so we think that Casey's will once again behave the way you know it has over -- long.
Periods welcome Brian's coming back in just a minute he's got more mid cap names in the mid caps -- a little bit gutsy your -- she says that are going to be just right for your portfolio now.
Don't be scared as a retail investor getting in -- says.
Closing bell ringing in 48 minutes we're now down just eighteen points having been lower but more than ninety so we'll see what happens here.
