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Iron pulled back -- was perfectly -- today's retail sales -- weaker than expected retail data left many investors wondering.
Is this the time to scale back a bit on certain stocks my next guests firm manages more than 315.
Billion dollars he says.
Calm down forget defensive sectors they will not make you any money it's time to turn up the heat Tim Swanson MFS investment management.
Cheap investment strategist started out from Boston.
-- -- Doctors such a long rally suddenly we see this one data point that looks slightly weakened everybody's -- and -- there because the consumer -- saying that.
No I don't see any reason to give up on the consumer they have been a stalwart I agree and this was a disappointing number I can't excuse today's number but.
Looking underneath it hospitality.
And eating out were weak and yet that's for most of the hiring came in that nonfarm payrolls there's an inconsistency there.
And secondly autos are holding up pretty well and and I think that's an important part of this expansion so.
I'm not giving up on the consumer the work weeks longer we are getting new jobs and there isn't any cycle in the soft goods sector and maybe that's what.
Was showing up this time of -- cycle meaning highs and lows just for our investors who don't know the lexicon MSF diversified income fund one of your funds.
Is actually up about 10% this year let's talk about your strategy when it comes to picking names that should go win -- and through that we can look at some of your most widely held names and people can get a sense of why you pick what you -- as you explain the details of that.
Sure and it's fundamentally driven what its its company by company so when you look at our sectors -- were overweight underweight it's basically driven by.
Is this company have a good product in a good space at a good time of the good balance sheet that's really what drives our selection.
Process of Campbell and event tossed Pfizer host hotel and resorts JPMorgan Chase it's a real panoply of of everything but when he -- I shouldn't say rates -- we are so far from rates tightening but we'll go back to the tapering discussion here.
What can people expect how will that manifest itself -- will your strategy which is up on your screen right now.
Will that change at all when the Fed does eventually start to take -- bond buying program.
Will and it will.
It would be less of the longer part of the yield curve so that would be minimizing that tends plus maturity type range.
He'll be emphasizing more credit and more mortgage related.
Securities -- -- fixed income.
But you know my whole -- this year has been on equities and on -- -- that probably even during the.
Sort of phasing in of tape pretty if you will when that -- which part of equities we have technology outperforming last year but now financials -- to be doing pretty darn well.
Is there a certain sector or two that -- really feel people should be overweight.
They're my two favorites actually I have to feel like the commercial banks -- -- -- financials up.
Here's why typically it's an early cyclical and expand their balance sheets when the expansions getting going.
And then the Fed raises rates they can -- prime.
Hasn't happened yet and there hasn't been a lot alone the man.
But we're starting to see wholesale loans increased at these major money center banks and the regional banks are doing more mortgage lending that's gonna help their balance sheet and help their interest margin.
Is there is their bodies still to be made in real estate.
Now you just talked about more lending -- now -- the other side of that with real estate.
Well you mention real estate I would -- in commercial real estate the valuations -- in there we don't have a lot of new square footage coming on the economy's getting better in the cash flows are good though that valuation is rich.
But there's still money to be made in the secondary and tertiary plays off of residential housing.
Which is still in the early phases of a comeback -- and that hasn't fully played out.
Real estate technology financials those are kids' favorites -- come back again and visit us thanks so much.
Thank you thanks for having me any time but Jim Swanson of -- -- FS closing bell --
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