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Economy it finally seems to be on the -- with a slew of recent upbeat reports lifting investors' spirits of what is the best way to play this recovery one money manager with more than two billion in assets under management says.
Jump -- -- not into gold not into treasuries but into equities Chris -- -- is global financial chief investment officer jutting out from Sarasota Florida.
OK this is this isn't.
Something that several people come on the show have said in just the past couple of weeks.
It's equities that are the real opportunity but I find it almost just disinterested what you say about so called safe haven plays.
Stay away there's no safe and say if what do you mean by that.
Absolutely -- I think that all of the real safe haven stocks the pharmaceuticals the Procter & Gamble's the Coca-Cola -- They've all had a great run from their yields were terrific eighteen months ago and now there at multiples that is really stretched for those types of names.
And they're really not great growers so I think anyone who's looking to continue to have the same performance would.
I think be making a mistake.
I think it's time to shift your allocations somewhat in equities at and that of course includes shifting away from golden treasuries what treasuries.
Absolutely well let's look at the bond market I mean we had a a real -- in -- both bond and stock markets and bonds got went from 17 to 25 or so.
And stocks went down about 7% and now they've recovered.
Almost you know three quarters of that anyway and all bonds of -- stabilize.
And I think really if you -- have a long duration portfolio.
Wow I think you're on the eve of destruction because.
You know we've seen this movie before 1966 to 1982.
We've seen periods are times when you've had the bond market.
And people now are not willing to accept -- -- must we go back into -- recession.
That were a less than 2%.
The eve of destruction that's so dramatic OK at that didn't get our our listeners and viewers attention this may and that is that while we've seen some really great performance from.
The Dow and the S&P and by the way your -- target was 16100 -- calling for 1650 by year end.
You say it's the NASDAQ Composite that really has the best opportunity between now and year end why.
I think the NASDAQ out.
And certainly names where you can in invest internationally by -- the USA.
Stocks that would do have great yield stocks that certainly a single digit PE's.
I mean stock from Hewlett-Packard to Western Digital.
To a company like staples where you're getting a great yield it's now a duopoly.
Other than Amazon really the competition is faded in the past.
Okay that now staples is not a nice move up about 21% of the people Levin you also like Ford as one of your auto companies the auto companies have done beautifully -- in particular I'm very nicely.
But Chris let me push you on this.
Not it's down 20% year over year so -- I don't have a problem with that because I hate when people come on and say -- at the top -- The PE is a 31.
Now when you say that it when it comes -- -- investing strategy there are three things you like to look at we can put up the list but the third one says.
You like single digit peas why then does -- fit into your parameters.
Well I think that -- if you looked at the normalize PE young four and you'll see that it's still very.
Cheap stocks and I think this compelling to say that really with some of these cyclical names you wanna sell them when there.
You know PEs are really really low and buy them when -- PEs are you know really high which means there at the bottom of the cycle.
And -- close to that I mean the average car and -- Wrote in America areas of the -- -- it's ever been so.
We're gonna see quite a replacement cycle and other than the sale of jaguar and rover I think Ford has been pretty mistake free in their executions and the sales of -- And then let me just reiterate them clarify Ford has looked really strong over the past year Chris thank you very much.
Thank you -- Christopher Olson is global financial chief investment officer of more than two billion in assets under management but the stock picks on FaceBook dot com slash was claimant.
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