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Lebenthal: Ride the Rally

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  • Description

    James Lebenthal of Lebenthal Asset Management gives tips for investing in today's market.

  • Duration 3:33
  • Date

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Thank you very much.

Right right away and that's the advice to my next guests are different things -- -- -- political asset management.

And on and at the last moment we should say here to talk about what we're seeing today with these numbers.

You're bullish.

I am my like that comment ride the wave I think we've kind of entered a sweet spot here where the economic data is unabashedly positive.

It puts wind in our sales and we don't have any negatives in the immediate future we don't have.

Real negotiations going on yet in Washington.

And the Fed is still on hold although today's data definitely would in my eyes move the date of their hiking rates a little bit sooner but that's still.

Again hereof -- other target to six and a half percent unemployment went up to some point 9% today right out -- -- the next year so my point being used were still far -- -- sweet spot is still -- if you look at the average on the jobs data for last year I -- up airport up let's bring in -- and one of the pieces in the market right earnings obviously is -- -- that.

But it seems like we still don't have that 300000.

Growth rate for the for the jobs picture that we need why the market do you think.

Kind of ignoring that -- urgent matter us.

Probably simply because the trajectory is in the right direction -- don't fight the tape kind of -- as well don't fight the tape but also the pendulum of economic data is consistently getting better.

There was a period of time particularly last summer where the data was disappointed but now it's really picked up -- so yes we're not at 300000.

But you know if you take today's data yet -- the revisions back -- actually you are close to 300000.

Terms of new jobs created.

We need to sustain that for awhile and I think it's quite possible if you look at the weekly initial jobless claims that we will sustain that.

And that's why there's probably more room for this market to go.

You know this isn't because January and in this is the best start the best kick off to the -- -- had an almost two decades -- senator wise yes anyway so getting back to where where five years ago again on October 2007.

Moment in time right but it I have to go back to those jobs jobless recovery.

Doesn't matter if.

Well -- I you know I think what we're seeing today is some indication that maybe it's not a jobless recovery.

Maybe it's simply a delayed recovery obviously it could be a lot better but today's news on the jobs front was unabashedly positive.

And -- and it creates a positive feedback loop if more people are employed they're spending more people are spending more.

Corporations will spend more on hiring on building new factories on increasing inventory.

That's sort of positive feedback -- is is very important and it's also going on in house -- The moves that you made -- just a couple of weeks ago for your clients and you were going get in doing some selective stock picking picking up suction -- were beaten down names like apples and others argue what do you do now.

Are you don't get it right away to be says just right -- -- buy anything else.

Well -- so -- let's talk about that we are one month into the year and were up numbered around it to 6%.

In the markets as a whole.

You can't annualized that's -- you know -- a little bit of ahead of ourselves but I think that it's quite likely that we are on our way to new -- so what do you do.

-- you play the cyclicals there's still a lot of room for the cyclicals to give your big bounce here and I think the key is is as the S&P 500 approaches the 1570.

1572.

Range that's where we've got to look at is -- going to set a new high were not.

If it does.

The news media including you will be all over the air saying hey look we've hit a new all time high and that will certainly get retail investors in off the sidelines.

And will continue.

-- tell drivers test talking about the Sox who wants to fight.

The rally against Dynegy by 65 point 15 that's the close on the S&P 500 would be nice to see James thank you very much always -- -- -- -- thank -- come -- last moment.

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