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How Can Investors Make Money in This Market?

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    Philadelphia Trust Company CEO Mike Crofton on stocks to boost investors’ portfolios.

  • Duration 4:07
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However the better than expected jobs report is lifting stocks the Dow hit in another record high in the S&P 500 is -- and -- on its all time highs well.

So what's next for these markets let's bring in my crops and president CEO of the Philadelphia trust company.

Mike we have heard again -- we have heard.

-- 151000 next week we have heard this thing -- topping its gonna pull -- the table where you.

I think the markets got some momentum is gonna continue to move forward you can't fight the Fed.

The Fed's done an unbelievable job engineering this market in engineering consumer confidence to the point where the consumer is now taking over the markets moving ahead under its own volition.

And that can gain enough momentum by itself so I think the markets got a little ways ago.

I don't look for a big correction anytime soon any correctional be short lived because there are so many people that have missed this initial move that they wanna get in so they'll have that'll temper any correction.

You -- the Fed before though haven't you you've kind of been a little bit of the I had -- about it OK so.

I have what I -- changing -- his.

I hate.

Government yeah -- and stuff.

What made me change my mind was the fact that last year we had tremendous macroeconomic headwinds none of them came to fruition.

The market climbed the wall of worry and when you look at -- zero interest rates.

Is like heroin everybody's addicted to them and I -- I think would just gonna have to.

Get on board and party -- everyone else in television.

But really expensive heroin is then -- means this someday we're gonna have to pay for this one would think.

It's going to be very very ugly when we have to pay for it and the longer it takes the -- it's going to be.

So what the Fed's trying to do is engineer trick here they -- they've stimulated this market to this point.

They need the economy to take over they need the economy to grow to justify or stock prices have already gotten -- Normally the economy -- first the stock prices follow this -- stock prices have gone up before the economy -- grown so the economy has to grow to justify stock prices it's a real trick if they pull off -- be unbelievable.

Yeah and Ben Bernanke will go down as the smartest man in history if it works right.

Let's talk about I'm gonna make money with Eaton when -- of what's gone on let's make some money with all this now.

You've got into interesting plays -- waiting petroleum is when he your picks -- come.

Had that -- for a long time I've suffered with the that I saw no but I really -- Wieting I really love Whiting Petroleum there in the Bakken shale.

There at an oil play they have tremendous -- proven reserves are proven reserves on the line the stock prices is a multiple the stock price.

It's an eighty dollar stock all day long just -- asset valuations.

They've got a very clean battle she's so could definitely be taken out and LBL.

I don't think there's any -- is -- I don't is really significant downside here maybe five points the -- thirty point upside.

And -- court this is data solutions have been here a lot -- companies like that's.

Yet dead they did they actually had real good earnings they've that they've done a fantastic job positioning themselves.

For a businessman but they think business is gonna be slow to spend their little worried about the economy I think they're a little bit behind in their in their thoughts on that I think the economy is picking up steam.

And it shouldn't be able to should be able to beat there -- reduced expectations again I think this is an eighty dollar stock in a short period of time.

He -- declined to say with in the bond market but is that across the board -- you talking treasuries high yield what do you staying away from.

You know the bond market is it is an interesting market all bonds go off on all bonds go down the same time that's why love equities sometimes some go up some -- somewhere that you'll assessed on the talk about anything but the bond market.

When -- rates start going up -- the thirty year cycle rates peaked at 8384.

Here we -- thirty years later rates are -- think.

They're gonna go up they're gonna -- -- for a long time and all bond reiterates -- gonna block and then you'll see the bond managers commencing cheek.

We have great performance we've grade relative performance -- relative performance is gonna be meaningless because bond returns.

Corporate treasury.

Junk they're all gonna be negative when when rates are going up.

Yet you know what -- sugar market come bark is no one -- -- pay taxes so that's certainly got to be -- help.

Yeah -- and a lot of a lot of participants in the treasury market -- tax exempt they just don't wanna take any risk yet can't blame them.

My -- and with the Philadelphia -- company thank you said.

Thank you.

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