This transcript is automatically generated
Are battling a Bryan gent through and David -- to talk about all that's -- bright eyed guys first few -- if I can.
Hi it seems like it may be time for an equity breather in Europe -- we just mention of -- of course that's.
That's way up it was way down its way up from from the low thirteen so it's it's an historic lows.
But isn't there are some kind of breather are we line for some kind of breather in equities right now.
Oh I think so many many people were talking about how the market is overbought and it's may be time for bit of -- correction while in May need to work here.
There's a lot of enthusiasm earlier this year.
I I agree with you I think that the -- is low there was -- a complacency metals bothers me.
Dad is it going it's still not up to its historical average is -- -- or nineteen or twenty.
So we've got a ways to go it seemed -- -- -- to me that after the fiscal cliff issues were resolved.
That people seem to stop worrying about sequestration and I think they are going to be reacting that more going forward because we're gonna hear about -- the news almost every day between now and in March 1.
And then we -- the Fed.
Maybe taking away the punch bowl at some point I think there a long way away from that put.
You can -- -- you can see is begin to weigh on the market.
So David -- -- bullish but you do believe that there is a correction coming.
Garrison and that maybe.
Have a a -- -- to your previous guest.
Last year the market did -- get to 10% corrections if you look at -- Highs and lows so within pennies we -- to 10% corrections we get a 10% correction.
On average once a year if we do get one used that opportunity -- To be more bullish on stocks for the longer term especially relative to returns and most pocket of the bond market.
This -- hedge funds other asset classes so.
If you do get this correction the stocks that -- more expensive.
A couple days ago will be down 10% maybe as much as fourteen or 15% an isolated cases.
And it's time to be -- net.
Buyer who -- what Bryant if if you have started your holding equities now you're wondering whether you could should calls some of your portfolio.
Where -- -- go what do you -- right now what do you prof.
What do you profit from from right now if you're if you're -- little skittish about this market.
Well I I don't -- -- leave anyone meet with the impression that we were down on equities.
All I was saying is that with the market having gone up as much as it did in recent weeks if you extrapolate that out -- I understand yeah right I understand -- I understand your bullish about the prospects is your -- but there are some people others you know that are little skittish.
About what's been -- away for nothing that the -- -- going up so what do is -- -- fee if I feel like a wanna take off some profit where to why go for that.
All probably do favor some sectors over others.
Even though it hasn't been a good -- -- for hasn't been good for technology recently we like the technology sector.
Some of the valuations are still quite attractive computers and peripherals are trading at only nine times earnings vs.
Looks like Turkey and -- half for the market as a whole way to return investor capitals good.
Spending on technology.
-- awful lot in the fourth quarter despite all the talk about uncertainty.
Putting a damper on economic activity it turns out the CEOs are doing the opposite they were actually increasing the technicals but and we think that's gonna go on.
-- like consumer discretionary protected because the industries that support home furnishings.
Are going to benefit we think -- continue to benefit from the upturn in housing.
We would we would watch out for materials.
-- kind of neutral on energy.
And we're just not quite -- even -- financials have been having a pretty good run we're not quite brave enough to go with it.
David David you -- you -- It hasn't similar thoughts that -- you like some of the consumer names Jack -- consumer asset management including.
Financials -- bullish on this is if we get a downturn as a buying opportunity what are some individual stock names that you're recommending right now.
Sure if you if you look across the market not just large cap names like Qualcomm -- I think -- no matter who wins the phone war Qualcomm.
Is winning the chip war.
Little smaller names -- which is -- technology name on the semiconductor and not consumer electronics.
Selling at ten times earnings.
I think that represents value listed as it is providing positive return on invested capital.
-- finally more consumer related.
Liberty Interactive which the parent for QVC -- along with eve night.
I think that spin out has been very good and continues to be creating value to shareholders.
So there's a few names and that in a market I think will continue to ward individual stock selection.
And for active investors to really get the best of the indexes in 2000.
Thirteen all right -- which by the way we should mention the last time David was here was in November he mentioned Google Oracle and CBS all are up double digit so he's got a pretty good track record -- us.
David I don't know what we believe that's guys and that it is -- -- -- thank you good luck appreciate that that's a lesson learned that it's.