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Mobile growth concerns bringing an end to the US stock rally but the recent sell -- has caused our next -- to make some adjustments for his investor's portfolio.
Jenny today Kevin -- on Stiefel Nicholas mark staggers -- manager.
He's got more on what's cooling off the markets haven't thank you so much for joining us we -- follow me you pretty closely Medina each and equity commodity exposure at last week as you say fundamentals are slowing.
So give us your best investment advice for where we go from here.
All right so to put it in context our group looked set of whole bunch of different economic variables we saw.
A -- thing in that process last fall we added some exposure to equities as a result of the improvement in fundamentals that we saw under way.
I'm right after the Fed and the ECB.
Took action last spring.
As we've rounded the corner came into spring we -- stocks up pretty significantly but as we hit march.
We got that disappointing employment number and variety of other data points that suggested that navy for the first time in about six months.
The momentum is coming out of the fundamental underpinnings for the economy.
So we took this is an opportunity to trim back her equity exposure go to a more balanced approach we sold gold and equities last Friday.
And we're gonna wait and see how the data plays out from here decide where we go next.
OK so what equities what types of industries are you holding on to then what should my.
Portfolio allotment look like right now.
I think if you gotta go beyond industries at this point you know we're going three and earnings season and -- ferreting through a whole bunch of I hadn't earnings reports and the kind of things were looking for especially given the recent slowdown we saw on the data.
Is sustainability so we're not looking for rapid growth necessarily what we're looking for companies that.
No matter what comes are going to be able to sustain their dividend.
Generate consistent growth and profits I think we're willing to pay a little bit of a premium for that especially given the recent slowdown -- on the data.
So for example thank heaven -- you look at some of these technology stocks apple in particular and go oh my goodness these earnings are not robust.
At all and staying clear of those and perhaps maybe sticking with these defensive names -- continue.
To lead -- at least.
As leaders into the rally.
I wouldn't I wouldn't exclude technology -- for few few reasons number one.
When you look at the performance -- tech vs the S&P or the value -- segment of the standard ports -- -- for example.
We had a pretty good underperformance already so we've had some significant lagging there and -- been some notable names that have been dragging down that index.
But ultimately if you look at the balance sheets the relatively clean -- not a lot of -- there's a relatively consistent cash flow from many of these businesses.
Many of them are now beginning to pay dividends are maturing.
And you can buy many of them that attractive -- -- I wouldn't I wouldn't run away from technology here I was sharp my pencil.
And decide which ones you want to own as part of a well diversified -- They ask you real specific question I mean you look at apple shares below 400 hump there's -- pop I mean is that an opportunity for you.
I think -- apple as it as an indication of a broader indication what's been going on technology -- to speak to it that way.
And is a classic example in the technology and apple.
Generally speaking lot of cash on the balance you know a lot of debt except that cash you look at the earnings power.
Challenge anybody to hair cut the profitability for -- in -- media and apple specifically.
Look at the underlying earnings power and probably -- figure that.
At least based on historic valuations were comparable you've been relatively well -- take on the -- so it's on pot it's become unpopular but I don't think you run away from -- OK and we have to run quickly but -- S&P outlook for the end of the year we know it's testing some key support levels here today and yesterday where -- think we end up.
I think 16100 is is a reasonable kind of number assuming that the economy actually does continue moved forward from here.
OK very good -- -- people that let's check back in the couple weeks thanks thing.
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