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United Capital Financial Advisors CEO Joe Duran and Profit Investments’ Eugene Profit discuss market growth and their stock picks.
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Good profit investments chairman and CEO and joked around -- United Capital CEO and founding partner but Larry I wanna start with you so we got good data when it comes to first time jobless claims this morning.
But we also got news out of the ECB said that they would not be doing anything with rates at the moment.
Does this mean that we continue our move to the upside absent any negative real negative headlines.
Well I think we well over with I mean this wall of worries still has a little bit of room to climb and I think a lot of it may be deeply because -- ECB but really because.
The growth metrics are there right now for the time being so right now traders are just trying to interpret all this information somehow knowing that the ECB wasn't going to raise rates this stocks really to shrug their shoulders on that.
Crowd -- obviously the Euro didn't sovereign shoulders but equities debt.
I think right now -- it's a big mix of not interpretation right now that's why were grinding higher Larry let me bring the American economy -- this Americans have less cash in their pockets to spend right now partly.
As a result of taxes going if they spend less won't that eventually hit the stock markets.
-- you'd think it would not think that's the question that nobody's asking David it's like.
Right now the stock markets being propped up by central banks and also this macro tranquility.
That we've seen since July.
That the time needs to be passed somewhere else and that's growth metrics and to your point.
Products have to find demand somewhere and -- something that you can't ration.
We need to find that would be US emerging markets -- not so that's the stumbling point that's the big million dollar question.
Larry what do you think -- -- the S&P record.
Simply wait a couple of traders on and the other 3 PM eastern show that said it's just a matter of the day or two a couple of days.
Yeah you know it's so easy for Arab way to say we're gonna sell off.
-- counterproductive I guess what you just sad.
I do think we're gonna stand aside a little bit and just pods right now because people are so nervous and the so confused -- what's going on.
The growth metric perhaps in a macro scale isn't there -- support much higher.
Larry thanks protects Larry thank you appreciate Larry's show over the CB let's bring in -- market battle got Eugene profits and showed your -- gentlemen good to see -- -- Does this rally continue another record breaking day.
I think it does.
And I I would look you asked the question whether the S&P is gonna break to new highs I think.
When you have the Russell which is all the small stocks having broken to new highs now for several weeks ago are -- the dial.
The S&P is almost certainly gonna get there it's just a matter of time -- do think.
That you're gonna start seeing an increase in volatility sometimes send.
But but I think people that I've gone from being concerned about losing my need to being concerned about losing opportunities.
To make money.
And and so what -- gonna see when you hit new highs is a lot more.
People who have been on the sidelines not saying you know we should probably get invested and that will be enough to create momentum to have to push us up higher.
Okay that's that's an excellent point Eugene because some people wonder does that mean that the rally is over when the slower retail money comes -- they -- you all missed -- or do you believe.
As -- does that there's still some pretty significant opportunity and that momentum.
That velocity that comes from money coming off the sidelines of more meaningful numbers is is something that we'll keep this going to.
Well -- I do think like -- mentioned that it could keep going but I think as Larry say it is for the time being for now.
I think that that all the worry is still there the -- on the stock market has people -- -- better.
But consumer confidence is down.
On the European economy still -- improving greatly solve the job numbers came in OK but they're not great -- I think that even though we're reaching.
-- highs on the indices that there is enough evidence out there would sequester in place that.
How we might see the market sell off at some point I just don't know when that would be so for now we're all happy.
All right Joseph let's get into some your picks here and it's an interesting day for oil.
Some people thought it would slide closer to eighty infected it went back up well over ninety into the 91 range.
You have the pick Goldman Sachs energy fund -- wire UN energy right now.
I think we we a very big believers in the emerging market growth story.
And so we think did two things driving the economy right now one is that people's -- prices are going up in value.
And people spend more money went and -- balance sheets go up from that is gonna create a lot of fuel for economic growth.
Here in the US and around sort around the world.
And the emerging markets are growing already and says the American consumer spends more money.
They are prime beneficiaries since they create a lot of the products we -- It's they will need more energy they'll need more of everything so where.
Does big believers and in participating in companies that pay you dividends and that get earnings from.
The rest the world as well and as you know that's true of not just energy companies but many companies including do investing directly -- much reluctance of.
Very very Smart investment stock picking ideas on on that at least one they say that's what you want you want the dividends but a real opportunity so -- -- quickly.
You like technology and you like health care.
We're going to be talking Medicare later because of course the -- affordable health care act bringing a lot of people want to the rolls.
What -- the two names in health care his life.
I like Medtronic -- -- of the device maker where it's it's a mark this story as well let's.
Bom cost cutting I also like HCA I think -- home.
Healthcare companies or hospitals or are -- major beneficiary is Affordable Care Act and the good news about this.
Is that because no one is really known to impact on there's a lot of dislocation around analysis in this area so this would great place for fun -- an investor.
To go shopping Eugene profit Joseph derail gentlemen great suggestions thank you very much appreciate it thanks -- Many states cannot afford.
