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Mairs and Power Executive V.P. Mark Henneman on how investors can boost their portfolios in this market.
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-- fifteen minute.
Well with all this excitement in the markets -- still buying opportunities let's bring in one of morningstar's 2012 domestic stock fund manages all of the year -- -- co manages the -- -- growth fund with bill for -- morning stop by the -- gives the two point eight billion dollar fund.
A five star rating pretty impressive it is beat -- S&P 500 with a nine point 65%.
Annualized gain over the past eight years -- well congratulations and welcome thanks for joining us.
OK let where it would knocking on the door 141000 on the Dow on the S impeach Shelly Brady -- senior editor here put out a note saying that.
85%.
Of the stocks on the S&P 500 are above their 200 day moving average -- this is amazing.
But all we do for a pullback.
Well idea would say that four weeks ago I thought maybe we would get eight or 9% returns for the year.
Earnings are coming through -- bit better -- we would expect -- and the economy might even be a little bit stronger so we think that there's still some room to go up from here.
-- -- the system does not that it has been flooded with cheap money liquidity all the way back to QE1 in not to 2009.
But as an investor can you really -- real fundamentals -- mean is this a fed driven stock -- Well we don't think so we look at individual companies that are still very attractively priced and and frankly the individual is just now starting to put real money into the equity markets.
So you don't think individuals too -- to the party could jump onboard and write the rally.
Well I think that over the long haul they're going to be in good shape that they invest here -- were expecting long term 78%.
Returns in the market and that's about the best thing you can get right now right so other than taking a long -- look which clearly your -- does what other strategies to you'd put in place to get these in such impressive returns.
Well there's nothing more important and taken a long term view we look at our companies and look at what they can do over the next five and ten years.
And focus on those fundamentals and then that makes all that the near term issues really kind of less important.
A couple of stock recommendations that you like because they would Donaldson I hadn't heard of this there logged off road vehicles is that right but also they did.
Well actually what they do is they provide air filtration off road vehicles and also -- for.
Natural gas side generation they gas turbines -- right -- you like them.
Well they there in an interest in position I think that with cheap natural gas prices we can expect a lot of gas turbines to be built.
For our future electricity generation that certainly.
Is in their favor and and they've also just built themselves a nice competitive advantage where.
They -- into an off road vehicle and have the first fifth and then all of a follow up replacement filters are sold by Donaldson.
The other yes stopping you'd like a much more familial on especially to consumers is -- -- Well they didn't have a great holiday season did they like you like target.
That's -- -- actually part of the point so the stock has been a little bit flat here because of a disappointing Christmas.
We think that that's -- short term issue that -- Will be taken care of in future Christmas is the thing that we really like here is there opportunity in Canada.
They're about to expand globally for the first time and they're doing that they're not very Smart way.
Just -- go back to the macro very view much you know like dig that deal like the valuations are pricing is they still good value equities that this price we continue to see the market moved higher.
The other market as a whole it's harder to say I mean we're still finding plenty of opportunities and individual stocks a lot of the companies that.
We've like for years where we've been able to add to some of them men also finding some interest in new names.
You know the market as a whole it's it's harder to say we really stay focused on.
About 400 are -- and 25 stock so we know really well.
Very Connecticut -- feel -- -- strategy isn't it -- ahead and and thank you so much with -- company thanks for joining us and congratulations on you found.
Appreciate it thank you very much.
