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Margie Patel, Wells Fargo Advantage Funds senior portfolio manager, gives her market outlook and investing tips.
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New worries about Europe.
So what's the best way to keep your money -- -- in -- Margie Patel managing director and senior portfolio.
Manager with wells capital management.
-- we hit Dow 141000.
For the first time in five years we have a pull back.
Do -- -- -- go up to accidentally -- thirteen five before we see 14100 again.
Why I think we -- eight we've had a terrific run up.
From the late fall through January.
Now we have kind of news -- for individual companies' most companies have reported so there really isn't any new good news -- -- we might see a pullback.
But the stock's -- say 20% or so which many good companies are in the last two months.
At its takes away your your enthusiasm so why not -- a little bits -- maybe the market -- drift lower short term.
-- -- up to this relentless bull market you still believe that stocks are reasonably priced so if I haven't -- -- yet should I wait for this.
Much anticipated pullback and then jump in or should I jump in now.
Well I don't think there's a need to wait because I don't think the pullback is going to be -- significant maybe.
Five -- percent something like that for the overall market no disasters 20% correction.
And I think what I'm starting to see more and more is.
Come stocks -- not just was macro trends of some pronouncement -- Washington for brother individual results I think it's going to be even more important to look at an individual companies.
-- prospects in the future.
To decide what to buy -- sell.
I would definitely get in.
Some of the sectors you're suggesting our individual.
Industrials and energy -- if we talked industrials were basically talking about.
An economy that's improving because somebody's going out there to build something.
Yes that's right and it really reflects what looks like a little bit of acceleration.
In growth in China and some of the other developing markets.
They all have a very strong need for capital goods were really the biggest supplier in the world.
As I think industrials might be kind of -- -- sector.
That -- people are very nervous about slow economic growth but responding to these trends in developing markets and an energy we may see them I have very good returns and this year.
What and to take easily health care of the large pharmaceutical companies they're always trying to come up with the next to Blockbuster.
Drug is there any given company in particular that you like -- Well I think the big.
Pharma companies.
That -- Lilly Merck Bristol-Myers.
All of big pharma companies that they all have patent cliffs.
But they seem to be on a new round of drug success in finding new drugs plus they still have enormous room to cut costs and improve their cash flow even.
In declining revenues I think they all look got -- pretty good -- high quality holdings here.
Let's talk about energy sector a little more wet -- in particular you playing and playing a pipelines and natural gas opposing boom here in the United States -- putting your money.
Yes all of the above -- companies that have good acreage in the shale gas plays where they'll be able increase.
At a very profitable level particularly -- liquids companies that are part of the infrastructure needed to take the gas and liquids from where they're found to where they can be used on the Gulf Coast on the East Coast.
-- companies are part of that I think they all will benefit over the next three years it's really a tremendous boon for ID US economy and for the energy companies in particular.
-- it seems investors still more concerned about preserving their assets that -- increasing the -- and that they can get out of bed do you think that's the right strategy amongst the best -- for them you know and a macro situation.
I think people are still concerned about preserving some of their money.
And so I think that people who are looking for treasury rates to go -- program be disappointed because that's one of the force is keeping treasury rates low.
And also I think will gradually see over the course of this year.
More money be transferred from.
More money market -- -- investments rather than bond funds over into the equities to take advantage of better healed and better returns we're -- So just a follow up on that quickly -- them -- money will stay in bonds -- on talks about this great rotation.
But as far as the you know bigger bond funds people keep their money their for -- -- Yes that's right because people want a little bit more yield and they would get in treasuries and money markets us -- bond funds give them.
And really bonds and then the friend of investors for over thirty years people aren't going to abandon bonds.
Overnight just because we have a little push up in treasury rates in the last six weeks I think they'll stick with bonds may reduce money market holdings that's true there's a lot but -- -- -- shell shocked yes.
Martin -- out at wells capital management thank you -- All right let's talk about the auto industry -- coming -- to a successful Super Bowl ads with new plans by the -- the -- -- financing unit.
Chrysler brands president and CEO -- all about it next without Jeff Flock live from the Chicago Auto Show.
Plus -- eight massive winter storm about the -- the northeast just months after super storms sandy.
Stated this.
The latest forecast is coming up -- -- -- do it every day.
