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-- -- S&P 500 headed for its twentieth and we -- close this year but my next guest is raising cash.
He says for the first time this hearing -- -- says.
You should -- -- of what could be as much about 12%.
Pullback coming very soon -- saw this chief investment strategist at rim James joining us now.
-- always good to have you on the program so that is set it off the top.
You're a little bit of a -- -- you're really pinpointing this that ten to 12% -- why is that.
The way I've been talking about target dates they they're -- both quantitatively is wells technical timing models.
For the past couple months have targeted a major timing point for July 19 I'm sticking with that there's a lot of things that are coming to gather.
-- news backdrop that I think could could be the trigger event you've got the Fed speak on the seventeenth and eighteenth.
You've got what I think is going to be a disappointing -- season with second quarter revenues and earnings coming out.
And I think you gonna here's before the congress adjourns I think you may hear some talk out of the hill.
That sequestration is starting to take a -- Let's you're skating or -- case very -- -- particularly after that we just heard from governor troll this morning with the political conference that that's really -- damage control.
Almost taken a toothpaste and trying to put it back into the two with all that chaos and miscommunication.
Bernanke set off a couple of months ago so if that.
Taper or any kind of found tightening isn't in the forecast and you think this market has some steam behind it.
I think the market is well -- -- on a short to intermediate term basis of New York Stock Exchange McLellan -- Slater is moreover -- and has been any time in the past twelve months.
Again I think earnings and revenues are gonna disappoint.
I think that the pullback is for buying because I think we are in a new secular bull market but I think on the short -- intermediate term basis you gonna get a pullback here.
Aren't so what do you like.
When we -- see this pullback and -- your fan of the pharmacy companies which is interesting.
Well doesn't do drugstores in particular we've been in Walgreen since the mid thirties we think it's still trades higher my fundamental analysts has that.
Outperform rating on it.
They have five dollars and thirty cents worth of earning power and 2015 if everything comes together.
And I like the dog to the group right now Rite Aid will not fundamental analysts as an outperform rating on that.
We think if that story comes together they have a billion dollars in free insecure -- that free cash flow and cash flow -- my 2015.
Right they just refinanced a bunch of -- they have a lot more free -- as you were saying Jeff but the other side of this is the bigger picture and reading some analyst commentary on his -- for change to just point to Amazon that.
Anything you can -- any drugs for these days you can get in a dozen other places whether the online and brick and mortar.
How does the competitive forecast.
Well that -- that the whole premise when we first started buying CVS.
On obamacare was that you gonna get more foot traffic.
Because of thirty million people coming under under pharmacy benefits if you will and drugs.
And if you get that foot traffic into those stores they're going to be -- and things more so than than just drugs.
-- and a -- asking about cash.
Before we go she -- trim tabs -- -- on cash is huge in recent weeks like eighty billion or something like that and in your fan of Kashmir advising people.
To increase their allotment -- allocation right.
Ed that's right that they did that rotation out of bond funds and into equity -- mutual funds hasn't begun yet the rotation that has been taking place over the past eighteen months.
Is out of non US centric stocks and into US equities.
-- -- thank you so much and you know you're reminded me that I should check my McClellan off later much more often think you.
That's a good technical indicator right how has your has your McClellan off later that's -- I think -- I think that the.
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