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A panel members now Hank wanted to ask you yeah yeah of course a bullish I mean who isn't in this environment.
-- all but -- -- seasons change your earnings season coming up change that -- we'll -- that could be the catalyst.
That is much anticipated correction -- we have mostly it.
Well I think once again earnings will exceed consensus expectations although we know those expect expectations have been lowered so much.
And I think it's priced and into the psychology that -- fourth quarter 121 quarter thirteen -- -- earnings quarters for this cycle and that we should have a pick up and earnings in the back -- so.
Yeah maybe the market pulse is a little bit we might have some days that pull back -- -- if you have a spate of earnings misses aren't on any given day.
But what the market still is a very attractive choice for new money.
When you look at the fundamentals forget about where we've been.
If you just look at the bottom -- p.s are below average got good dividend yield great balance sheets.
I'd say still -- being an equities.
OK then let me bring in Jerrold -- here -- Darryl did you have been bullish and you make money being bullish but let's now let's.
Drill down and find out what you like in particular and there are some areas -- west emerging markets you like right now tell us what countries and why.
We actually like the emerging markets is a whole list we think the valuations are extremely attractive there.
I'm in particular -- like Mexico for quite some time we still like China and Indonesia we've got teams on the ground there right now doing research.
Are incredibly cheap especially relative to some of the developed markets and so.
We still find great value their -- right when you look at the value.
Having outperformed growth 350 basis points in Q1.
Over 900 basis points on the rolling year.
So there is value in some of the more growth he names the cyclicals.
Technology Telecom materials to us all look attractive heading into Q1 earnings season.
Thank would you agree quickly -- some people some analysts say the emerging markets have been somewhat disappointing.
So much is dependent especially in Asia and China which has been kinda iffy at best do you like emerging markets.
But we do because look.
Intermediate and long term of emerging economies are growing two and a half times that of developed economies and so we would agree take advantage.
Of this relative underperformance in the past -- -- past half year and emerging markets it's a good -- -- good entry point right now.
All right so with seven billion in assets under management -- guy like they OK let me let me really see what's kept you guys afloat and doing as well as you have.
If you had to say your best bet over the past six months what would it have been.
Well I think the defensive side of the market we've.
How to balance between defense and offense but if -- defensive side and you mentioned a while the names earlier Johnson & Johnson Procter & Gamble.
-- to just named two have done extremely well the staples -- health care.
Making new all time not just 52 week -- all time highs so that's really benefit the portfolio.
Hank wanted to ask you about the also the financial very quickly if I could JPMorgan and Wells Fargo reporting.
This week what are you expecting from the financials.
Well look -- know what we think go particularly -- Wells Fargo also a JPMorgan you're gonna see.
Housing and in refinancing being a tail wind.
Are -- with fed policy the way it is they're able to -- burned.
Of their way into improving their balance sheets we -- -- normalized earnings these companies are still very cheap.
And are still at the beginning stages of returning.
All a lot of money to shareholders to the extent the Federal Reserve -- well in terms a dividend increases so of what we like him very much.
-- just as important as what are you buying as a question is.
What are you -- has also equally important what what makes you scared and skittish at the moment.
You actually wiest who we're finding that an area that looks extended are overstretched us is to small cap sector.
When you look at the Russell 2000 and particular on free cash flow basis.
Is really expensive right now -- almost nineteen times forward earnings.
The earnings disappointments have been pretty extreme coming out of that -- Your restructure this by the way to -- ten -- chart the -- just been up I'm very resilient bull run though and I keep hearing people say it's going down a point down and it after.
A couple stumbles it continues to push higher.
Yeah I think I think when you look at what the latest move in the Russell has been it's been a strong beta move basically.
So is -- people what that -- OK so as investors have just simply wanted to own the US market per say.
They're putting money into work in US market as long -- -- and a bullish.
Trend -- upward trend small cap has the highest leverage point in that sector so in Q1 we saw.
The Russell 2001 of the strongest performing indices.
Our concern is just that the valuations are looking stretch in the free cash flow in that area is really tough right now so how could it makes it -- hard for us to get extremely bullish there.
Important reasons good to see both of you thank Smith and Carole Crockett by the way Todd Horwitz.
We're keeping you on a leash we needed cut back and -- -- -- to the other AS and.