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-- to today's action we have David Cook like his mainstay capital management CEO and chief investment strategist he breaks down.
Why so called Barbell strategy is gonna help you profit in an uncertain environment -- Gerald lead.
Jared Levy is in the pits the CMA let's start -- Jared at the -- Jared let's talk about that they're earning season in general we've had two or earnings seasons since the year began.
What do you think about the financials their -- some people say the financials are so big they're reporting such big numbers.
Partly because of what the Fed is doing that they're -- week.
The overall what say you.
There's a couple of big news there right now I'm sort of on that side of the -- -- the financials are probably looking a little better than they should and here's some of the ponder first ball 270.
Companies BS a 1% -- every year so again they're really carrying the S&P.
Good vibe with -- included.
It's about 3% to the positive side so -- -- act again you gotta look at each stock individually epic but it is the whole probably a great second at the end.
But there's bits and pieces that are good -- -- out of all the men and I think right now really Richard a look at for progress this week.
BLS number -- look at that GDP number and also how did survives a lot of sort of confusion happening right now we're trying to figure out.
You know are these markets being German truly buy just the Fed.
Or -- really begin looking at earnings in actuality and frankly.
I think the -- -- where -- -- earnings is this earnings season is not much better than what we saw last season and by the way earnings beats 65%.
Vs 68% last season so again not not as good as we saw last quarter.
Yeah but the markets continue to grind -- did you hear it right at -- at a what what -- -- it's good enough how about that the -- season is good enough.
It's good enough and you know Liz had.
Here's the thing you got to remember for all the viewers out there when you look around the world and any other -- there is no other place to put your money but here you're not gonna China said this before you're not going to Europe.
And you're not gonna even put an end bonds -- this is why they're ten you're becoming so important because as those yields rise guess what folks are sticking around -- dividend stocks is -- you know what.
Bye -- I'll let it go at the US government as.
Late -- may be good I get a better yield -- that -- so again right now guest list it's good enough and that's why stocks moving our work harder and -- -- David.
-- -- there's another good thing I think it's going on right now is sit in for the first time in a long time the good news for the economy is good news for the stock market we've had such an artificial.
Market here distorted by what the Fed has been doing by artificially keeping.
Rates low that sometimes when we have bad economic news which meant real people were out of real jobs that was good for the stock market -- -- -- American Express announced it was laying off 5000 workers.
American Express stock went up that's not good for once good news for the economy is good news for the market.
That's right and that's where we wanna get too is -- good news is good news again and were headed -- -- have been.
With the talk about tapering -- talk.
That but you know we need to get.
Interest rates -- the economy that did trading on fundamentals of the economy.
In the bond markets instead of being held artificially low by the Fed so his -- normalize.
As rates are determined by demand for capital.
That's good for the economy good for the overall market and good news being good news again means stocks trade on fundamentals.
Now I want to bring up a name it's not one of your names but it was a name that came up in the last hour or we had a guest who really likes Rockwell Automation.
There's a mid cap name.
It is very close to its 52 week high of 93 dollars that about ninety it's done so well.
Don't you think David that the best place for real yield is when you pick individual names -- you truly feel that this is a company that's going to do well vs just.
Hiding in a corner keeping your money dried powder waiting for the -- I think that it is important -- that from a micro standpoint.
I'm not a stock we follow but yet you're looking for good names quality names -- and small -- -- large sector.
But we have seen.
Stocks over the past few years trade more on the macro environment -- on micro environment and as we move back to stocks trading more on fundamentals when it's less about the Fed.
And more about the economy and how these individual names are doing.
Where it's not a look rising tide lift all but lifts all boats and efforts is we look at financials.
That comment was made.
Are they did they do better than they should or what I think is that he's doing better than expected which is good if they're pulling the rest of -- the earnings season long whether it's the hearings a little better than we expected that's a good thing and what it what it tells you as you wanna be in financial.
Which is why which is why your word we're showing right now the spider for financials ETF exchange traded funds and again.
What it no matter how you slice it people out there are still afraid of individual stocks they have seen so many scandals work where people get in before the retail investor -- as they figure.
Look there's no way I'm gonna beat the analysts on.
The fast traders to supercomputers on individual stocks are natives -- as well go into a fund and that's why -- by the way all of your picks are foreign exchange traded funds -- for spiders.
Yeah we you know certainly there we -- portfolios were picking individual names.
But in terms of -- sectors like the financials regional banks take Biotech is an example where it is a high.
Risk high reward scenario for all those individual names but that sector would like overall because of that.
Cracking the human genome over the past several years.
Tremendous -- activity so we can -- each -- half.
And make a play on that sector overall with a diversified portfolio.
Well -- let let me go back -- because.
A diversified portfolio if held for the past year and a half.
Would definitely show some real gains unless you're heavily into gold which has indeed pull back just a bit.
But looking for -- where do you think the real opportunities are.
You know Liz I think -- somebody said first of -- -- I think they're great but again -- to look inside of them.
Of course what you wanna see here are the stocks that -- may -- underperformed.
That maybe aren't -- those super hot sectors and you know -- -- be honest with you.
Just look at -- look at the growth vs what their value is you know look look what the real companies making some some stocks.
It caught the halo effect they're not really make it that much money they've got these high valuations meaning the stocks trading for way more than what Aaron did a year.
Look for the companies that are cheaper here's one company -- -- -- about -- -- Waste Management the reporting earnings tomorrow.
If -- economies that good and people are consuming gets what they're also doing they're throwing away so you know companies like that.
It may be are being talked about on the headlines as the -- you wanna check up and.
He gets violated every -- have you all that particular start.
I do not only Batman no I -- not very good.
David -- -- we're gonna see you a couple of minutes when the SP futures closed but David thank you very much for coming appreciate it.
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