Also in this playlist...
This transcript is automatically generated
The S&P barely missing its record closing high yesterday.
But our next guest says while the economy is showing some signs of strength we're still a long way from being fully healed.
So what might that mean for stock prices joining us now from foreign park New Jersey is Kevin Tehran and steeple -- portfolio manager.
No Kevin thanks for -- what does it seems like you're gonna be here -- outlook is basically.
So what I want to know the list.
Do you worry that we're gonna tumble in stocks what -- way way down or you say and that once the economy gets really stronger stocks will go up even more.
Well I think that he -- that market always has the potential to move lower I wouldn't be -- -- in that kind of environment.
To go in and by the kind of stocks that we are buying.
Essentially -- several years into recovery I say that we're not out of the woods yet because you still have some very.
Strange things in the next that is helping the economy got a 0% interest rate for example.
Which has been in place for almost five years he's had trillion dollar deficits run the last several years without a formal budget at Washington.
All of this has been a big boon to the private sector savings initiative.
But now we're going the other way now -- looking to pull back the deficits and at some point we're going to be looking at higher interest rates that we have those hurdles to get through.
But ultimately if -- -- companies have very good balance sheets are consistently profitable like your.
Other guest was mentioning conservative I think here is the way to -- -- I think we can make money -- long term so would you put more money into stocks right now.
But we work we've been overweight equities we mentioned in a note to our clients back in September of last year that fundamentals were bottoming -- looking better.
We've been a bit more aggressive in terms of our equity allocations.
-- but ultimately I still think that.
Those that -- because we're not out of the woods the companies that are increasing their dividends consistently at that rate it.
Balance sheets consistently profitable -- want to build your portfolio around that you can't pull back in the market.
Make a shopping -- go find those kind of companies to -- Right all right have a Dow and S&P of course or near record highs and for the doubted that all the time but you like small -- and -- -- stocks wife that.
I think that ultimately those -- the companies that over time can grow to become your next margin mega cap stocks so.
I think that ultimately.
If you have a longer term time horizon and take some risks in the smaller knee cap space.
If you can still find those companies that I described before as being conservative.
I think that you can still make money there and when you do have these pullbacks in the markets which are inevitable.
Those -- the you can find lots of good opportunities in that area so right an area that we think.
-- you off like -- and corporate bonds for the intermediate dead duration one last key thing though.
What key indicator would you look at the -- with the economy is going up or going down just -- panel but.
Well we have a barometer that we constructed that actually takes into account thirty different.
Indicators and ultimately it's been a very good barometer for us using gauging the economy so -- at all.
As -- -- things improving here OK thank everybody Kevin Kyra appreciate that over the Bucs offense you.
Filter by section