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Stocks are covering it all time highs but is it too late to ride the rally and how Long Will -- last anyway.
Joining me now David Mac Albania -- of any financial group Steve Crowley at Steve Crowley's American scene and Venus exactly today said -- Good excellent of MA capital management we'll start with you Xena.
So -- we had this rally underway in by at least some measures you see that stocks are actually cheaper than anywhere last year he think it's too late to get and.
Well you know that really depends on what your time horizon is if you're investing for 1020 years and -- as a matter if your short term trader you couldn't.
Is this your way of telling me expects sacks to go downstairs.
In other -- is more likely to have a pullback after -- -- -- -- But yeah I I hear what you're saying David do you agree.
-- even over ten year time frame we would be cautious establishing the cost basis at these levels would imply.
Two to 3% average returns over the next decade.
So it not very interest thing if you consider inflation factored in -- probably looking flat to negative returns.
So not overly bullish at this juncture you could still see prices move higher 1012%.
But that's based on fed activity not really economic fundamentals.
Ari did it -- -- I want to turn to you for a second because there's another topic we wanted to hit today.
Is about -- -- in USA stocks.
Now we're seeing some stocks perform better then just you know companies that invest overseas get a lot of their earnings overseas Netflix for example is up 404%.
Well and less than 3% of their earnings come from overseas.
Qualcomm just the opposite right 97%.
Of their earnings come from overseas they're not doing well at all.
We make this is this really to invest you like investing in -- in America stocks.
I do I think there's a -- -- the buy American you know I think that's the way about their but I think people looking for dividend paying stocks.
I think people are going to be very cautious of Jerry during this period from June to October.
Where there's typically a flat spot but if you buy into -- mum on momentum stocks those -- spectacular increases in revenues and net profits.
You're going to do pretty well and not apple as a good example because of apple comes out now -- bargain prices really.
There -- apple comes out with a new iPhone 5 ask for even the.
We're going into the game again let's go to apple that don't talk a little bit of that out of Xena the U.
Fidelity Contras portfolio manager will ban off big -- on apple until the last couple months and he's been selling off his -- about 10% of that -- Is that it looks like a Smart move in retrospect.
He probably got in a very good price and he's locking in profits you know -- -- he wrote it up as a as a lot of folks say but.
You know apple itself is still as strong companies Scott leading.
Revenue -- expect.
-- -- your buyer.
You know IE I have a position but I'm not a buyer here but they haven't fully invested in it but.
-- what do you say I mean.
Even apple two ways here really I think you know -- they're cheaper than they were right absolutely true but also.
I mean come on there's so much competition on the horizon for them.
-- I think you do see a lot of competition from other Smart phone companies and that is going to be an issue moving forward market shares is a major consideration for them.
Strong company great name I think it was prudent management to -- the position by 10% but keep in mind he still has 90% of the state.
Still in place so desperate management and turning into -- we don't -- it wouldn't bite at these prices though.
Wow and so David what do you say would perceive would you buy it here.
You mentioned it before it an interest in play are you a buyer.
Right I think apple is investing a lot less than Jerry if you look at it when -- went up -- above 700.
People should have taken their profits may be had a stop loss and there it is not right and all the way back down.
It's really sad to see how many people -- apple down from 700 down -- 400.
And I think it may dip below 400 during this spring and summer time to get back him.
-- -- -- it amazes me.
How these really famous portfolio managers will get into one big momentum stock and just write it for all it's worth.
Did -- -- what's your single best idea right now if you had this talk about one stock green one sector that you think is gonna do well over you know.
Three to six months what do you see out there.
Well one area and it's not a large area but frontier markets.
Is they're not large part of the GDP but there could be a good off opportunity.
-- talking about countries in southeast Asia allows Cambodia.
Managers should be very selective though because they do come with him to -- -- big growth right.
But they have and they if you seeing returns they have massive growth these companies basically -- their actual risky tends to be lower than their perceived risk.
-- single best idea.
Single best idea I'd have to focus on gold mainly because the Central Bank is actively running again where they spent about eighteen months not expanding their balance sheet last month instead of the 85 billion promised that came in closer 210.
So they're back in the money printing business.
Along with the ECB and Bank of -- -- you've got a global investor appetite that I think is looking at these as.
Good prices relative right with two years ago.
-- your single best idea.
Single best idea would be Canadian resource stocks they've really been pummeled.
And if you look at that as -- stocks at a polling gold and silver and base metals on the ground.
Real good value plays right now in many cases they're growth plays as well so good time they would be giving him on a country that's been depressed on the resource side.
Interesting I don't think it -- -- as being depressed -- did Stephen Dana thanks for coming in today really appreciate your time and thank you and thank you.
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