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Well it is time for street fight for the bulls we have -- -- -- PNC wealth management CIO and for the bears.
Kim -- -- fort Pitt capital group vice president and senior equity.
Analysts -- Jim thank you so much for coming at your money -- review because we hear from a lot of investors registered from a fellow doubt CME's saying this that we are ready for some.
Kind of pull back that we are we about little top heavy right now but you say no way.
We can continue to forge ahead and reach new highs despite by the way these -- GDP figures -- you so bullish.
I think contrary what you see -- that headline on the GDP I think the underlying fundamentals and components of the economy remain positive.
A private demand consumer spending.
Private residential housing construction are all positive and I think though we may get a pullback.
How we had a great them a year in the in the first month them but 2013.
I think it comes from higher levels.
Higher levels can you disagree -- bearish for the next twelve months what is behind that perspective this time around especially since we've gotten a terrific January.
We've had a fantastic January night.
Anybody that -- stocks feels good about owning stocks.
But that being said it might be ahead of itself.
We look at the S&P 500 say it's gonna learn about a 105 dollars this year we put a fourteen and a half multiple on it come to 15100.
And -- pretty much already there so -- hit our number already for the year and that's what makes us nervous.
Kim I was -- -- -- -- also nervous about real estate even a lot of bears I know save at least real estate is one.
Thing that's positive we can put our money safely and at this point but you say -- beware right.
-- where I think there's still a lot of shadow inventory out there and just today I heard this reiterated.
That there are still something like 27%.
Of people that have a mortgage.
Are either -- close to zero equity or are under water so.
You know that's going to limit people being able to move people being able -- and certainly people being able to refinance so.
It's not as rosy as.
You know we would like it but it's certainly better than it has been the last couple of years him.
If you -- to act on your belief that things are looking very good and I assume you are because you're recommending an allocation of 802080%.
Other -- -- the other but talk about the sectors that you really feel confident about going into at least the next couple of.
Charlie isn't it in this environment I think with the improving.
Balance -- for consumer consumer discretionary particularly around.
On the improvement in housing isn't in this sector we'd look at health care after being absent for the last couple of years is is certainly improving I think valuations there.
-- continue to be attractive.
And those sectors that are dependent upon the economy industrials and materials.
-- look attractive here.
Well Kim even though your little bearish at least compared to Jim you do have some -- and I'm I'm adjusted -- enjoy your picks -- Boeing and -- have been beaten down Boeing because it's a bad company news.
And I also concerns about defense spending it which we're gonna get into more detail and Intel of course why do you like these two stocks.
Well you know we are.
If we tell yet -- Look at stocks today where -- planning on -- -- at least it would keeping those in your portfolio for three to five years.
All things being equal -- -- -- long term you know bad but but why it no longer term event.
Okay it will Boeing that's a great play on the emerging markets.
That has been you know an area the world it's been ordering a lot of Boeing planes.
We like that also in the developing heard the developed world.
They are very fuel efficient and again that's a very big seller for these planes so.
There's some fundamentals that we think -- you know should -- -- in the future.
You know they have not been present in the mobile device category.
And we think in the three to five that the next three to five years they really have a compelling story and we think what they're gonna be both in Smartphones and tablets and then.
The next ever -- mobile device that somebody comes up way.
All close to a dozen new Smartphones are shipping with Intel -- you're on the right track -- Jim.
I guess the question is do you fear of bond bubble bursting -- many people.
But so scared they missed the rally that's happened.
All for the past year they miss the January rally they're still parked on the sidelines with money under the proverbial mattress in treasuries.
What bond bubble bursting look like and I'm talking treasuries particularly.
There's no doubt -- the question is -- it burst and you do we just let the air out of that slowly.
With -- what's gone into fixed income vs equities in the last that point -- 36 months we've all seen the numbers dramatic.
Inflows in the fixed income.
Particularly around treasuries so I don't think there's a bursting I think it that we let the air out of that slowly.
I and I think you'll start to see and the Fed is is continuing to.
-- set that up in their monetary accommodation.
I'm moving their risk assets Adam fat so as they as it's sort of artificially nearly is that they're certainly the purchasers of treasury which maintains that -- I and they well for awhile.
But that well -- slowly out leak out here that hissing sound you hear is the slow leak from the Boston market.
Good stuff guys thank you very care can't -- you -- great to see you.
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