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Positive note jobs ever coming in today.
OK I think is what both still think yes.
On Fox -- have been telling us today I mean this jobs report.
They beat the street expectation.
But doesn't help your stock portfolio that's a big question here break -- the numbers and give his best place for you to make a little bit of money lives Robert.
Street talk advise CEO.
You'll live with that so many -- -- -- -- -- the countdown the other shows as well and saying that basically that.
You know it's it's risk on this is a risk on environment -- -- opportunity -- -- -- use.
Well I think you really have to take things have a little bit a grain of salt here because in order for this to be a risk on environment and you know the bats are is that this is all based on the Fed buying bonds.
And that's -- a risk on environment and that's -- that's basically been the trade for the last seven months the problem is now is that we really have to start would get earnings growth.
And economic growth and those are the two things that were not really getting it you look at the number of pre announcements that are negative vs positive -- record levels there very high ratio net at seven.
And those don't bode well for markets -- force I think -- to be a little bit more sensitive to the risk your putting your portfolio until we get more clarity.
Why does it could be you bring up the -- that I talk about this a couple of times the show with the fact that the that the sectors that are saying that the job creation a lot of that is part time.
Lot of it is re talents at restaurants.
And and part time employment.
An all time high in this report that does not people that's an economic growth -- the -- -- -- look at that I know they're basing your.
You're at you advise your clients on the -- the -- is gonna look at the same numbers and say this isn't what we need now mean to me that tapering.
That's right is the -- is the way the -- -- that that's right and and one thing that I've been saying kind of lately is is if you look at the trend of the economic numbers and you look at where -- deployments being created and daisy just right we said to me has mostly part time work lower wage areas.
Yards and and that's good I mean we're getting jobs that's great but we need full time work.
And if you look at the number four time jobs first -- the labor force were basically haven't come up much from the lows of the recession so.
We're not creating the type of economic momentum that we need to really generate that long term secular bull market were all hoping for so.
I think we have to be a little -- more realistic about expectations and for the bad.
We can get to 7% unemployment but you may have 7% unemployment that still ninety million people out of the labor force and that's not what you want.
Also -- up unfortunately and you like low grade corporate bonds it's it's a tough few weeks for the -- were great out there -- to me about about what you're looking in and that's basin and -- -- going for that that that type of bond in particular corporate bond.
Well the elements the US let's be clear I'm not about what great about my job okay -- -- the lower end of the investment grade scale which is triple B.
And and the reason is is that over the last four years corporations have done an absolutely remarkable job of deleveraging their balance sheet.
We know corporate profitability has been very strong they've been slashing their labor force and increasing their profit margins increasing their cash balances.
But the ratings agencies haven't really caught up with the balance sheets and a lot of these companies so really if you if you do some searching and all that -- work.
We're finding triple B rated bonds that really have -- rated balance sheets and visually -- the rating agencies will catch up.
And -- the great thing now is look our job is investors is to do what this is to buy low and sell -- And if we look at the bond market this recent spike in rates is like a 20% correction in the -- market.
Bonds relatively cheap right now and so for a technical trade because interest rates now for -- deviations above the long term mean.
There's a good opportunity for a good -- -- short term and and for the short term and bonds and -- like that better than than an overbought stock market not moment.
That's about the very interesting play -- -- -- brought that up I do wanna get to US and stock picks from you -- in particular you know you're cutting up for the consumer names again.
-- like Clorox.
I did look the thing is is that.
We've got to remember one thing we -- four years into an economic expansion.
Expansions don't last forever and you know the belief right now is and there's nobody betting on a recession anytime soon.
But -- we're we're -- longer than the average of an economic expansion economic growth is a great one point 8% in the first quarter.
And not seeing any real strong pick up your unemployment so I think that's is what we talked about.
So that areas they're gonna do the best in -- -- a slower economic growth environment are things that.
Consumers are gonna -- regardless you know they can they can opt out of buying an iPad but they're gonna buy Clorox are gonna buy food they're gonna buy staples and -- had a nice correction over the last few months and so.
They've gotten oversold -- -- short term basis so again from a trading perspective.
I like those better than the financials which have been run not really to valuation levels that I think you'll be a little bit challenged with a rising interest rate environment.
-- -- -- you're saying a white financials reads energy and emerging markets there some message you want to write but I do wanna focus on a couple of picks they had a in the technology -- there.
Google and Microsoft to mean art is kind of -- old school.
Yet they are bit but again you know and if I'm trying to dig around in the tech space -- and I'm trying to find some relative safety again.
You know I managed money for individuals that are near retirement or at retirement so.
The one thing I need is I need liquidity and a need relative safety I don't wanna wake up 1 morning and find out that -- accompany miss their earnings.
And it's down 30% which we can see in a stock our differences like Netflix -- can move very rapidly.
It's I don't need that kind of risk in the portfolio -- like the tech space.
And an NN -- areas like the bigger names because of a solid revenue growth you look at the fundamentals longer term Google in particular they're they're really dominating in the and -- cellphone space.
And I think that's an area that only continues to grow so I I think that's you know those of that this safer areas -- safer bets I can make.
With client money.
I -- personally -- just saying you know we like to watch the -- go up and down but certainly doesn't feel very good when you see.
One of -- top names I -- asking the apple investor out there real quick I don't ask you.
You picked clients in Kellogg as well back when you're on the show in April and Clark is now under a little bit of pressure -- -- -- down since April 11 are you telling people to.
Wait -- would you have them.
Buy it now bite on it.
You want it -- They did it again our job this kind of buy things cheap and I don't think that story's changed and I would use this opportunity -- this down cycle here.
Did to add some exposure if you didn't have it if you already -- the stock you know you don't -- -- overweight positions at the moment because again.
That the relative risk in the market right now -- on a very short term sell signal so the relative direction of the market.
In the short term for the next month start to its potentially down don't forget we're heading into a debt ceiling debate in September.
So we've got that whole you know that whole thing coming back up so.
I think there's some relative risk China's slowing down eurozone slowing down you'll they're -- -- in a recession Japan's having some issues here.
I think there's some real risk in the short term and so with the -- prices are trading lower.
Below the more cautious here -- extra cash and I think -- get -- get opportunity tell it to add to equities may be cheaper level sometime in the summer of.
A -- and take from you Lance Roberts street talk advisors CEO like the bottom creating -- pretty fun Lance thank you very much -- Thank you very much for having his right.
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