You're watching...
TAMRO Capital’s Tim Holland and Compass EMP Funds CIO Stephen Hammers on where to invest in this market environment.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
-- continue in the meantime we bring in our market panel.
A let's -- into guys who have opinions very strong went about what's happening right now Tim Holland and Stephen hammers Tim let's get right to you first that -- remained fully invested.
Could can you talk about and -- because at it right now there seems to be a lot of positive but he.
Out there and and I'm just wondering would when you feel that way where you allocated the money.
-- and in our small cap core strategy -- -- large cap core strategy we have significant significant exposure to the consumer and financial services.
Names.
For us is -- really remain the same in the past 1214.
Months -- -- -- turned.
The consumers.
Jobs are coming back and all that -- in the consumer sentiment and spending and so that's gonna help those names directly face in the consumer.
But the banks are are sort of a secondary beneficiary and filing with capital markets acting better and animal spirits coming back.
You're seeing the capital markets facing companies.
Put up much better numbers in their stocks act much better so for us.
Please read my for -- -- -- but UBS notice it right down there receive news corporate -- -- just want to update our viewers on those earnings go ahead Adam that's right I'm.
-- -- beat on earnings per share 44 cents adjusted earnings per share street expecting 43 cents David.
Revenue nine point 43 billion industry is expecting nine point 28 billion a couple of things.
In the report the publishing operating income 234 million vs year over year same quarter 218 million.
Cable side 945.
Million vs 882 million for operating income -- over year same quarter David.
OK cable is where the money's coming from their -- -- -- news -- -- particular television reporting quarterly segment operating income -- 224.
Billion that's up 19%.
Vs the same period a year -- -- television cable looking strong.
Stephen let me go to you a fight -- you also are fully invested right now but you are cautious you're cautious investor you go for cautious investments.
Where does a cautious investor park his money right now.
What investors have got to be cautious although we've done very well in the last year -- so far this year.
But investors have got to understand the markets have been going up but what's behind the market where -- the fundamentals behind it.
We still have slow growth we still have spending -- -- hand.
Our earnings are slowing down a little bit even though.
We we do see some good earnings but you -- understand it's just not gonna keep climbing climbing after recession like 2008.
It it will slow down it has slowed down but you have to be very very cautious and we don't expect double digit returns this year at all.
OK don't expect double digit returns at the moment so let me now askew to him when you when you figure out that you liked the -- small caps which have actually been pretty strong.
I don't know what are we have the twelfth Europe -- -- And you -- minus that the financial crisis it's looked very good what would change your view on being as fully invested as you are right now.
Well as stock -- we look at the market -- company at a time as opposed to topped -- -- camera capital so we think 2000 small cap stocks.
Within the Russell 2000 which is the benchmark short of the space yes you know we're looking for fifty to seven -- our best ideas -- broadly diversified.
And you know fifty to seventy names in in upon full of 2000 -- we usually.
Do pretty good job -- out that the winners so were fully invested that's our mandate.
But we still see good opportunities.
Especially again within the consumer part of the market and within financials -- -- financial -- View one of the largest parts of the market that are nowhere near -- five year highs are multiyear highs so we think valuations.
Are still particularly supportive and it's a pretty -- around.
Part of the market because people got burned so badly in -- way you know night.
Stephen you're shorting agricultural stocks wife.
Well in the commodity market we do expect a fairly flat market but it's all based don't Wear the trends -- the prices going.
We wait all securities and commodities based on the risk contribution.
So whether it's gold or oil they have the same risk contribution in the portfolio.
That it's all based on where the prices going precious metals have been.
Fairly stagnant to slightly up but in terms of coffee and cattle and wheat and other types of commodities.
It's just -- where the prices going and we intend to follow the price -- as longer short in the commodity market elect.
