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Nuveen Asset Management Chief Equity Strategist Bob Doll on the sectors that should be on investors’ radar.
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Not gonna get too hyper about that because we're looking in the aggregate hear what a month for stocks best January as we said since 1997.
At.
The S&P 500 rising more than 5%.
If -- in this market.
Should you take some money off the table if you're not in the market what should you do joining us now Bob doll -- -- -- asset management -- equity strategist and senior portfolio manager.
And if you're you're cautiously optimistic are you not.
You know this market that we thought would grind higher but it's galloped higher there's no question that's -- -- -- credit looking at January those numbers are rather stunning but can can that continue at least.
I don't what pushing too far out but.
February -- -- have 5% a month times twelve -- 60% I don't think so.
Look we're not gonna go straight up we know that we think the positive fundamentals will carry us higher but it's not going to be non stop.
As you just talked over there's been a hint of a bit of a pullback.
Hasn't followed through a whole lot we'll get a pullback at some point in time but I'm I'm not concerned as long as the fundamentals remained.
It's healthy as they are well let me pick up to I don't know if you consider consumer confidence of fundamental but but it was a little bit of a disappointment there no no questions -- -- your opinion not really because the often if you put all the consumer things together they're feeling a little -- better about.
Be able to retain their jobs.
For a little bit better about the price of their home and they're the two big ingredient for how much money consumers are gonna spend I'd rather see the numbers we refer to go up and go down but up.
I'm not overly concerned sorry volatile series we hit five year highs for the S&P and and we're getting close to the all time high for the Dow on any given day.
So what would help us attain that what do we need to see is there one particular thing.
I I don't think is one particular thing -- if you think about what's driven -- so far and what would drive as the rest away to an all all time high we postpone the debt ceiling problem we're getting decent earnings the fundamentals here and abroad or reasonably good.
Central banks everywhere and giving us all the help in the world.
And cash list like check is still returning zero and people getting tired of that OK let's bring that point up.
Bucks cash return zero it may as well be almost treasuries which are returning just under 2% at least for the ten year but.
Up 46% of the S&P companies reporting so far for numbers 69%.
Of -- pretty comfortable with that number if you can stay there we're in -- Checkbook -- no question that that's a good anything close to seventy is really good.
And as you know on the revenue line they've been above expectations as well so let's -- somebody's listening to say I'm positive with Bob -- I wasn't in the market I was scared now going to start picking what are some of the things that you look for when you're picking the -- I think first of all you need to say I'm -- dollar cost averaging 'cause I'm not Smart enough to get -- the lows and pick them off on I have money earmarked for equities let me not sit on my hands -- every paycheck you have auto debit.
Goes right into what.
-- -- -- So if companies with free cash flow you can find mutual funds that the focus on that sort of thing -- -- you pick your own companies that do that.
I think that in a world it still has slow growth you want companies that can hire a worker.
Modernize a plan.
Buybacks and stock raise the dividend maybe by the company down the street in free cash flow gives you lots of freedom let's get to your sectors and and to us a favor just to guide people give one pick for each sector and I guess what could start with.
When that you like your consumer cyclicals does some of the consumer cyclicals I'll open the media names -- Comcast I think is a decent name.
If it's it's got growth it's got free cash flow it's being managed for the shareholders in my opinion.
-- -- -- -- -- -- Up for the -- there's DirecTV as well I would add that to the list I think this whole spaces kind of interest thing.
If you wanna be a little bit more conservative.
A gap stores Costco.
Both -- the consumer space just a note on DirecTV and we we spoke -- Joseph Clayton of DP BN INS I'm sorry -- rather and we and we ask him about would there be a merger with DirecTV at some point does that change your opinion at all no I look at that the media space is -- for more consolidation.
And the free cash flow back to that the term I use a second ago.
-- wells and it and encourages that to happen without financials we always say that you cannot have a real rally without the financial plan along if you had to to still.
What would be the crucible the comes out of a financial pick up I want a company that is finding places to grow.
Most financials -- grown their earnings because -- balance sheet has gotten better and door that the cost side somehow.
I want revenues to improve Goldman Sachs is a choice there Goldman Sachs and you wouldn't mind if there's a management change at some point where Lloyd Blankfein.
Decides it's time and then somebody else goes in there Goldman Sachs is a very deep rich company when it comes through leadership.
Okay Northrop Grumman is your defense -- for Raytheon and Boeing.
You're not touching you're not staying away from the fire -- I look this -- -- my attitude if you wanna be a little more conservative and not buy stocks have run.
But get some exposure that -- that this defense space is cheap.
Most of it has reasonable cash flow but the fundamentals are a lot of headwinds there's no question that's what the stocks -- -- -- they are.
Of course Boeing has some of Sony issues last question the one sector to avoid.
I'd be nervous about utilities they lagged last year their bombed like.
And if you think interest rates are gonna creep higher is I do.
I think utilities lagged again that is great to see you receive and you're looking well thank you mr.
-- -- are much whom I've known for a long time -- happy new year to YouTube Bob dollars in Indian asset management chief equity strategist.
