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Citigroup Managing Director Tobias Levkovich on how investors can profit from the market rally.
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Cheerleader but ten minutes we'll have to and we still have a record move here up about nine points for the Dow Jones industrials could it be.
Now it's up 117.
In a -- winning -- here.
Citigroup's Tobias Levkovich either way back with us to tell you how to make the most bang from your -- during what he's calling the region bull rally which you say.
Might be a little tough after the first half of this year correct correct them.
Three concerns Europe because of tight credit conditions.
The US if it's a strong as we thing going in the second half you're gonna have a lot more discussion about what the Fed does next.
And then thirdly if we don't get some fiscal there's there's some fiscal reforms within the bond market get a little bit unsettled late.
-- OK so we've established that but there's always a way to make money as they're not.
That's familiar what are the beneficiaries.
Of a raging bull market that may or may not continue this year so that -- three areas observed that we think are probably most likely have to benefit.
Anything tied to that energy build out as you're trying to service companies equipment companies are fine companies that have to move this oil and gas around the country.
If you're looking at the housing we're in a recovery.
Clearly homebuilders have gotten better but it's anything related to homebuilding don't just focus on the -- look at stuff that's going in paints.
Carpeting -- we're gnashing that's what -- -- to call the derivative trade care whether that is the news the Eagles of the world you know where you talk about actual materials used to build but the lumber that goes numbers you -- that you need to put -- window close window treatments.
Sherwin-Williams based in -- London and we were there just a couple of months ago has -- many 52 week highs last year so -- look at those names here it is again -- hired -- 169 dollars -- share of regulations and I have there's some of these sorts of -- so -- I -- for the -- on those -- wait for a little bit of a pullback sort of technology I -- I -- not to pull -- -- single -- but just a few minutes ago Blackberry got a million orders of -- Blackberry ten brand new one.
This broad -- its thirst Wi-Fi thirst that we all have with the Smartphones now is act -- this far.
It's it's -- The numbers we're hearing are things like over the next three years -- 27 fold increase in bit usage.
For broadband managers think about it you're doing video streaming in your show your friend here's the here and check this out there's a monkey putting mentos and Coke bottle you know those -- You know hot enough that everybody wants to share of that reasons that I don't quite understood my personal favorite is surprised kitty which now has three million -- -- Little but they made it this that the stuff that -- really pulls down the the the capacity and as a result we're gonna have to be more build its infrastructure around that.
I'm I'm a little trouble played along with some of the equipment -- only because I think there's going to be some breakthrough technologies.
To allow more.
Data to get through these networks.
So I'd rather look at things like towers.
Where I think you have to hook whatever equipment goes -- -- a country -- march to bless you don't like.
Financials yet you -- like I had a side window -- on financial fully in the -- financial but the only one place in financials -- unwilling to really.
Participate today and that's insurance companies particularly -- Could property casualty in most annoying basically no new capacities come into the industry and unfortunately because of -- things like sandy.
Which we experienced personally in our home.
You know you're gonna get higher insurance -- so pricing Paris sort of come back and I wish is a very attractive.
What don't you -- what are you avoiding specifically well avoiding from health care where valuations are too extreme we're avoiding consumers pressure despite the fact I like the consumer.
Just the -- have -- too far.
We are getting jobs slowly but surely we are seeing well professor of housing and security holdings moving up making people more -- you know what -- feel wealthier and as a result.
Who want to spend.
But on the other side of that he -- the stocks -- already run that hard.
And they're ready anticipating some that you don't want you should you don't buy stocks just because of fundamentals you've got to watch the earnings revision momentum if I don't watch.
Valuation and those stocks -- just -- too far at Tobias thank you for coming in my pleasure and you got to witness the whole Pope sure I think I did Baghdad -- at the -- -- They wouldn't let Levkovich voter sample -- apparently if they are no -- -- -- put up.
Nor -- thank you very much and -- of course is of Citigroup it's great to see.
