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Well gambling on on growth in the US and how well our recovery will remain in place the IMF says today in a brand new report that the US economy.
He -- more sound footing most likely thank you the housing market right they say that the housing market is looking a lot better.
But about a year ago was not so now my next guest believes that yes things are looking better but he's got some ideas on how to add more fuel to the economy in your portfolio when he disagrees.
With what the IMF says will be growth for 2014 to two point 7% dot Shriver WBI -- CEO and co portfolio manager.
Joins me now we need to make this point -- that Christine Lagarde told us -- a Fox Business exclusive that.
Originally it was 3% growth expected for 2014 they've downgraded it slightly to two point 7% while better then this year.
You believe that she's wrong what is your number for broke the 2014.
Well there's a lot of complacency about where we are certainly things are better but we need to be north of 3%.
Three and a -- is really escape velocity for in the US economy.
Following -- on Alibaba dot use -- need to.
What is your expectation.
What do you think we're going to hit.
I think if we get in that two point seven arrange for this year will be really lucky -- expect the second half.
To be probably close to 3%.
But what we need to addresses that we've still got these huge -- -- for the US economy headwind for the US economy which is -- Say the cuts under sequester and their tax increases that we had and that's what's taken the steam.
Out of the engine of the US economy and that's why we're not growing faster.
That's exactly what Christine Lagarde said she said.
Repeal the quite the -- not -- -- thought the wake up through it and that yes we needed to cut it was such a small cut the grand scheme of things 3%.
But it was disproportionate in certain areas like defense and education.
But she said it will hit us in the second half of this year and -- -- you say that to what are we need to do.
To get up to 3% what do you say the economy needs to do.
Well we need to take the cuts.
That we're experiencing right now we're seeing these -- come down which is really great but it's coming down too quick and that we're sacrificing.
Now China has slowing.
All of Europe is under water.
And we've got the Asian markets everybody is dependent on the US as a major force that is going to drag everybody away from deflation.
And the -- and the edge of continued financial collapse we have not hit that escape velocity and what we need is a C 33 and a half percent.
And we need to regulators to wake up and not be complacent because.
We are still in trouble worldwide.
And the US economy while it's doing better than expected.
Still needs to get -- 3%.
Forward to getting to the healing process.
Doctors see that that regardless people still want to invest they still want ideas please give us some you like digital payers right now first of all which -- do you like in the space and why do you think.
That these are names that will help people's portfolios in the next several months.
But what we do is we're always looking for value when you can buy stocks cheap to pay -- good dividend.
You're probably on the -- track so what we wanna see here is we've got Susquehanna bank which is a regional.
Bank that still is printing exceptionally good earnings as a two point 7% dividend.
The revenue still looks strong and these are the kind of companies if you can afford to invest in right now otherwise.
I think investors need to keep their powder strike as we expect to pull back during the summer months.
Digital real woody is a company that has a 5% dividend yield.
These are company that does -- sale lease back on data centers to company so the company sells in the data center and they manage it.
And they pay them rent on an ongoing basis it's -- reach.
Publicly traded -- in the United States and that company looks strong and that's.
I I I like I like your idea here but it's down 19% over the past year whereas the the S&P is up about 21% 21% of the -- short -- that doesn't worry at all.
It does and then I think the market is pretty fully valued even overvalued for many securities.
Just three weeks ago there was a record number of all time high hit for the S&P 500 companies.
So I ask you when can you buy a company that is an all time high and it's still a good value.
In my opinion never.
-- right and he got to sort of downgrade your expectations because everything looks rather fully valued.
Yesterday we had Damon John of boo -- he's also of the shark tank fame that show where.
Entrepreneurs try to pitch their ideas he loves shoe companies in fact he has -- stake in it tonic.
You like a different name out here which one NY.
-- we like footlocker foot -- seems to be doing well as a matter of fact they got.
Really -- hurt you know a little bit little while ago.
And they seem to be on an uptrend now so we like again buying stocks -- -- and you can see from the chart that it really sold off.
Quite a bit so we're looking for stocks that are still a good value you only get a chance to invest in the stock when it wants when it's cheap.
And it's easy to find somebody else to buy it at a more expensive price if you -- right.
But it really is difficult to find someone dumber than you to pay a higher price when -- Cyprus.
That is very true and in the end you wanna find cheap stocks and sometimes it's -- -- good company is going for a little bit of a tough time Don Shriver great to see -- thank you for being with us here on -- have a closing bell my pleasure.
I'm Travers WBI -- CEO and co portfolio manager guy.
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