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Telemus Capital Partners Chairman Gary Ran and FBB Capital Partners Portfolio Manager Michael Mussio on the stocks investors should consider for their...
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-- let's bring in our I can't help but -- Lucio and Gary ramat.
Let's get to Michael Lucio if we're talking first sir about what you see for the next what's throw it out -- three to six months.
What is it because we have some what appear to be extraordinarily positive trends in place less concern about Europe.
People moving out of assets that are fear traits like gold and into equities.
-- there's definitely few positive catalysts they have been moved out of -- traded dimensions.
Merger activity last couple weeks this has really picked up most notably yesterday it was.
Deal with Berkshire Hathaway.
And -- and so if we start seeing more merger activity that could keep a bid -- that the market driving us a bit higher.
Other things -- could be helping her people sitting on the sidelines that work in any fear trade with what we're just been -- -- trade which is just cash you have had a concern now that.
They don't wanna be chasing bonds because they're reading about the potential bond bubble and so they're looking to stock since could also help Bob provided it.
-- by the way I misspoke I said to Andrew when markets open on Monday markets are closed by the way -- -- we will be opened here on Monday Fox Business will be -- we got a lot of advice story on where to put your money.
But the markets reopen on Tuesday Gary.
Let's talk about consumer sentiment now because Liz mentioned earlier that they popped much higher than expectations.
How well how does this reflect itself for the -- you should proportion a portion your portfolio.
I think there's a cyclical recovery.
At hand for the academy.
And I and business -- may be slow -- some frustration with the politics and Washington I think the consumer wants to get out there spend I think the consumer.
-- number today it was a reflection of that so we like stocks that are leveraged to the consumer here.
Okay like which ones what -- really gets you going what you believe that the consumer is at least healthy enough to weather any kind of headline brisk.
Are their names in here that you feel are real winners and -- -- put to VF court at the top -- jumping about three and a 3% this is very close to 52 week high.
They have done extraordinarily well but on a global basis to the stocks that you pick have to be global powerhouse us.
-- I think you're right that this story is that the US is doing better than the rest of the world I think you wanna leverage yourself to the US consumers are names like VF -- one.
Michael cores -- story that's unwell husband's strong I think that -- there -- -- a pullback but that's another name.
AutoZone is a play and the use it to better economy as consumers prepare their cars and he's for transactions.
Well Michael like most folks I think you've got you have mixed feelings about the markets.
But where the markets are going from here explain those mixed feelings because on the one hand there are some very positive sides -- consumer sentiment that we -- But there are negatives as well where how does that all balance out and yet.
Tell -- the markets -- that the trend is your friend right so I think you do market continues to gradually move higher but it's not without its the risk of a pullback so all those positive catalysts on the one side that I mentioned on the other hand.
-- -- you have Washington in what's going on night here in in our backyard kind of driving fear.
And you also have -- I don't think we've seen kind of come through the system yet what the payroll tax holiday what kind of -- that's gonna have.
The note that you the mission of the top of the hour Wal-Mart I mean that could be is part of the story -- -- the dollar stores about a hard time.
In January for month over month -- so.
I don't disagree we were owners of VF court some of the higher end stuff seems to be doing well -- that says it pertains to the consumer.
For investors that are looking for kind of more defenses.
Names.
We're looking at things in the energy yes sector -- utility sector that are a little bit more stable.
Underperform the market last year.
In terms of sector exposure and then health -- which actually did quite well last year.
Gary.
Some of the companies out there in the S&P 500 have.
Clipped their estimates they have cut their forecasts for earnings does that concern you what does that really mean.
But I think you know guidance today is is conservative I think for most companies you know you're rewarded for outperformance not meeting your estimate so I think.
Going into this I think companies want to be conservative.
But also you know there's have a duality going out of the academy businesses seem to be -- -- spending and I think.
Companies leveraged to business spending may have a tougher time.
But what I said earlier consumer -- want to get out there and spend and that's where it be focusing my attention.
Michael and Gary great to see you guys thanks for the advisor -- -- have a great weekend thank you.
Thanks for -- thank you.
