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IRA investors are getting ready for the markets -- resume trading tomorrow but after hitting five year highs last week -- money manager is warning that.
Corporate America's performance might not last John -- as the vice president at USAA investments he joins me now from San Antonio for a Fox Business.
-- -- Johnson is gonna speak with -- I'm curious he would have these big.
Marks especially with the S&P hitting multi year highs and and and seems overall that -- bullish but you say that we've got -- to be concerned what is it.
Well I think what we've seen.
Capital market outperform the economy over the last couple years muted the large monetary and fiscal stimulus.
What recently we've been earning -- Our concern is just what's gonna happen -- -- why.
Revenue growth accompanied.
Bomb and then in particular there are forward guidance.
I'm particularly but most companies.
Who -- -- to consumers spending because of the recent 2% payroll tax -- OK so do you think at this point has real look at the economy vs the markets in particular the housing sector -- Many analysts and many economists point to is being such a -- -- If the housing market does not have that true true rebound in 2013.
Do you think that that -- going to affect market performance.
Yes we -- we're looking very closely at the housing market and out at the manufacturers are the reason is is that.
-- both of these leads to improved employment and not just any type of employment construction jobs and actually job.
Company -- and and to be higher paying -- other jobs particularly service jobs so if we fear continued pick up and housing market in which aren't.
On the manufacturing.
This could lead to the first virtuous cycle but we all bit -- or -- on the private sector.
Okay and now I know that one of the groups that you do watch sort of the groups that you're actually positive on and it's not a lot but -- health care you do like health care.
-- kind of some of the names that you appreciate right not in that space also.
Do you think that what the health care law the exchanges really beginning to kick out of the next twelve months the health -- is actually gonna continue -- rise forward.
I I would think -- -- -- Did you know being.
Strong relative to the overall market and one -- one area we like our.
Over the -- they have light is large cap pharma is -- their big race spree yelled wire barrier.
Record -- -- inflows into high yield bonds.
Well all of all of -- valuation that sectors like telecoms and utilities which pay.
Armstrong dividends but we think one area.
-- evidence that has been over -- is large cap Barbara we like names like Austin chalk and our market in particular -- OK doesn't three names you also like some of the drug distribution companies to give one ending give us there.
Yeah Cardinal Health the -- you look at what.
Happened over the last several years we had a big pick up in the generic pipeline 2013.
There's a big drop off but coming.
-- into -- the fourteenth 2015.
If another big generic wave particularly for the so called.
Limited source rock which -- limited to a couple distributor and that should be cured opera companies like -- -- All right we'll certainly there is again earnings season is picking up I'm curious overall.
-- -- healthcare space in particular -- -- -- get some upside surprises -- become when it comes to earnings.
And it particular those dividends that are is so crucial right now our viewers.
-- what we at least break we you'll see upside surprises particularly health care after the recent.
JPMorgan healthcare conference conference we saw a lot of people have been -- and -- Street think that's gonna continue throughout earnings beat that we think there are companies across the equity based that -- will outperform but in general we really like health care.
If it is going to be anymore it much more mergers or do you think that we're gonna see more companies trying to the other share.
May -- -- -- -- We think it's true across not just felt across all -- corporate America's watch what cast.
And if they're not gonna get you organic revenue growth we will we expect that -- -- a big picked up.
In emanate particularly.
As the concern over the debt ceiling in the fiscal when warrant out.
Until after -- a lot of investment bankers right now New York there celebrating what you just said.
When -- results they John --
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