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Wells Fargo Advisors Senior Equity Strategist Scott Wren on investing in this market environment.
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I -- S&P 500 hitting a fresh five year high -- better than expected economic data.
So -- Chile to get in on the action our next guest does not think so at all he said there's more room to the upside.
Joining us now Scott Wren senior equity strategist with Wells Fargo -- All right so you're saying an S&P.
15785.
How to get there.
Well -- -- tea right now -- valuations work on our side we have the Federal Reserve working on our side.
We also have some things it could actually make 1575.
A little conservative not a lot you know let's say China bounces back a little bit better than we think.
Or Europe.
Is less -- -- flattens out you know that 1575.
And that's a top end of 1575.
Range you know that may be a little low but.
You know if valuations were higher if if I didn't feel like the Fed was going to be supporting the market for a long time -- -- You know we might have to question that but right now I think things are improving fundamentally I think the labor market's gonna continue to improve slowly I think.
Confidence is going to continue to matters I think it's very doable number.
It's fabricated those what you're saying right as long as the Fed keeps pumping money in.
They control inflation that you got nowhere to go -- -- Yeah I mean you know what let's face it I mean if the Fed hadn't pumped trillions and trillions of dollars allowing these other central banks.
Into the financial system you know market probably wouldn't be where it is right now.
Yes I guess to give him props for that I suppose.
Where did it Terence -- what went away Jeff that night is there you know a Europe -- -- is back on your radar screen.
Yeah you know Europe Europe that is on my radar screen and really never left -- -- -- solution and -- and that's the wrong word use solution anything they've tried to band aid over there.
I think that's all it is is a mandate -- day of reckoning I mean I think Spain you know at some point probably is going to ask for aid.
I wouldn't surprise me if the European central banks in there aggressively buying bonds.
At some point so that's a mess over there are but it's it's a band aid but you know if he told me five years from now -- -- going to be talking about.
The eurozone debt crisis I believe every -- yeah -- I guess that's the main thing.
That keeps me up at night and also here really in the states this structural unemployment if you think about it.
You know 40% of the people are out of work have been out for six sponsor longer that's a big time problem that structural.
That worries me.
-- is that's there's you know consumer spending out the window let's talk about -- sectors like that it really interesting that you are underweight.
In the financials and the energy sectors sort of contrary to what we've been hearing lately.
Well I think I think Tracy if you look at energy.
Usually.
Now financials on the other hand I mean clearly a great performer the best performer last year in hindsight I think we would love to have been overweight financials.
A -- a little bit underweight and that's one of the wants along with industrials that in my book you know worry and wait industrials are and we should we should probably look at.
I advancing at a little bit too so financials and industrials are the two.
That for us we're watching them very closely but.
I think financials obviously had a really good Ron yeah things will -- for them but it but you know that we're not gonna see the kind of -- financials this year that we did last year.
Right I guess there's so -- they too can only go up I know -- -- overweight consumer deal that would -- -- -- -- You -- it in financial you know when I went when you have a five dollar stock go to eight or ten dollars that's you know that's a big move that we had a lot of those in financials.
Yet we most certainly did and just so everyone knows you're overweight consumer discretionary information technology materials and Telecom.
-- Scott thanks so much for sharing your thoughts.
Thanks Tracy happy -- -- and team.
