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Okay US equities are all seeing.
Double digit gains so far this year my next guest is still riding the -- Janet angles that the US equities director for the RBC wealth management.
Portfolio advisory group her firm.
Has 250 billion dollars in assets under management still -- -- ball -- life.
Couple things reasonable valuations.
I would say an old saying.
Bull markets are born in pessimism -- growing skepticism.
And they died euphoria I don't see euphoria out there particularly when I look at.
Funds moving out of bonds but not moving it to -- reasonable valuations good balance sheets and an economy that is accelerating in the second half of just answer the question I was going to ask about what metric do -- -- -- -- you're looking at bond.
Bond fund outflows and seeing where those flows are going and they're not.
Heading directly into equities are still going it's a money market funds were into -- canceled dom.
There's no interest there is there some but there's skepticism still skepticism on the part of the market by the -- look at the S&P 500 year to date up about 18%.
You still feel there's more room to run.
Yeah but we wouldn't be surprised I pull back a pause here we've talked about this before everyone's looking for a pause -- pullback we -- a 7% pullback in the spring.
Were up seven and a half percent since the June lowest.
But we think that there is still further to go in the cyclical bull market may not be as much as we come through but we have more upside.
Going from here today the end of July close to the end of -- -- which sectors do you feel.
Might have real opportunity to be active in a positive way.
So we think the cyclicals make more sense the defense of stocks opened like energy.
Energy -- -- -- -- -- in WTI crude we also like technology it's been a laggard not only at a unity basis but since the rally and we also like financials which have performed quite well.
Less time you were with us and we always like to do what we call the guest check you -- -- technology new picked a name.
Who CEO came here yesterday that was F.
5 Networks since you picked F five.
Ticker symbol FF -- it's up 18%.
Do you still like if you still like the Sox still has further to go and I'm not an aggressive buyer but it it did the fundamentals are still there the earnings are still there the moment to -- -- argument -- iron technology.
It's hard -- I'd look at -- CE MC is one of the names that we're all looking at today or -- storage solid player.
Good earnings in the June quarter dollar 85 for this year to ten for next year.
Lots of tail winds in the second half of the year some product enhancements and new products revenues and earnings growing -- over 10% lots of cash on the balance sheet.
And if you look at an improving economy we should see uptick in IT spend maybe three to 4%.
Since they are the dominant player not only should we -- storage grow at twice the rate of IT spend they should do even better than that.
And I think F five has to deal with them does it -- -- -- OK so -- sprouts from one to another okay let's talk about the financial -- you have right now this isn't exactly traditional financial right.
Allstate Allstate has been a great -- this year many of the financials have been a great performer.
At what -- what -- unique about -- is they've taken a number of initiatives or profit focused.
In in in home in the homeowners area.
Debt refinancing share buybacks restructuring.
Of their retirement plans agency rationalizations all of the stuff all of these actions together had been announced they're all it incremental.
They will all increase return on equity.
This stock -- and I'm looking at the one your picture is very close if not at its 52 week Ky act.
It but it's -- to buying it's -- to -- here because arc -- key here is that we think that there's more opportunity for return on equity and we also believe there's an opportunity for me -- multiple expansion as people recognize the new wants to the story.
And we should be trading at more than one point three times book.
You said energy was your first sector that you're looking at going for it as an opportunity what's your pick there so Concho Resources so they -- land based exploration and production company.
A pure play on the Permian Basin.
Oil and guess this is the key -- couple things a great management team they have proven expertise.
They've done a great job of growing organically the key for the stock.
Is they have a little bit of -- in the last quarter.
It has not performed as well as its competitors with this rise in WTI crude.
They report in the next couple of weeks.
We think if they get it right they're playing a little catch up and by the way it's still good operators we like the story tell me about that little -- at the start that you said where -- rises on pessimism -- and -- -- -- account bear markets are born in in pessimism they -- some skepticism in the dying euphoria -- and he she says we don't have euphoria just -- -- angles of RBC wealth management it's great to have you here my pleasure see -- next time closing.
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