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Story is fascinating.
The major indices moving lower today's so where -- the sweet spot in the market right now if you sort of take an area what would it be -- best in my next guest has two billion dollars in assets under management.
Says he knows the answer Jim -- south Texas money management president and chief economist at what is the answer where sweet spot.
Well we think there's a lot of value in mid cap stocks they're pretty well positioned to take advantage when we got -- -- on the -- you know I'd say between two and twelve billion.
It's it's it varies from manager to manager -- that's what I look at and what it means a company that it is split the global footprint or are still growing more closely to the United States we can find mid caps that do -- -- -- -- -- -- -- -- -- -- some -- -- -- as well -- -- -- -- -- love our viewers to -- -- previous -- because they've done.
Mostly extremely well you picked General Motors.
Since depicted an October.
She gets up 48%.
Since Jim thought it was a good bye I wish you -- listen to him but if he didn't maybe it was some -- Wells Fargo.
You also like Steve Ellis Stanley Black & Decker that's up about thirteen point 3% since October -- how do you pick a stock.
Well we have a bad screening process who look for growth and value stocks on the -- the two different animals and a growth stock you want.
Obviously accelerating earnings and and and top line that you really want to.
Stocks that have a thesis is gonna play out -- longer terminal value is looking -- a microscope you're looking for.
Undervalued assets -- the market seems to have treated at the transient problem as a permanent problem.
How closely watching things like monetary policy and the Fed and tapering.
Well I think to be honest I I think there's probably too much attention -- that I don't really we have monetary.
Policy problem here in the United States that -- -- that concerns more on the fiscal side.
So we watch everything.
But some things you know my job -- the chief economist -- know what's really worth -- to pay attention to what's not so you don't hang on every word out of the fatter every -- head and speaks and absolutely not I've been watching things like the outcome of the German elections the price of oil.
Record and -- -- a few other things to your -- -- -- put out west Texas writing what you really want.
Really the US and global economy growing pretty slowly.
And the one thing that that causes recessions the shocks and an oil price shock.
In a slow growth economy has a much bigger chance to cause we're gonna see a shock I doubt and that's not a forecast that's what -- watch and it's easy to their.
Well interestingly enough as you're watching for shock levels you're picking -- oil stock and by the way so this is the big moment where we tell you start writing these down if he missed his last picks that have done pretty well.
What name do you like in this area.
Well for effort energy in general a company it's kind of tapped into a lot of that they energy revolution is Dresser-Rand they make a lot of the compression reciprocating equipment that Houston is -- fluids in fuels and transmission and anything really all oil and gas.
So we think that's a great midcap stock as well -- -- -- -- takeout candidate but it's not priced as one yet.
Okay your next -- It is is I would say -- bet on the resurgence of manufacturing and that's Rockwell right if you automation.
Yes Rockwell Automation if you talk to the global.
Shippers they'll tell you that the outsourcing trend is -- peak is coming back -- And that favors from manufacturing in the US as well as cheap natural gas Rockwell.
Builds out manufacturing plants they're also.
-- -- automation a lot of these Asian economies with.
Higher labor costs -- wanting automate pretty quickly so it's a great midcap stock for from June kind of industrial names you go to food and that's -- -- deal -- health food conglomerate.
They just had to I was noticing the other day another 52 week high -- Pain is that company everybody should -- some defensive stocks and frankly defensive stocks are wildly overvalued.
Maybe not wildly bad overvalued historically.
And so we in the mid cap space Cain is is that rare creature that that that's a stable it's well -- it's got a great future organics.
And that industries expect to grow that explodes suddenly everybody's freaking out about gluten gluten free this gluten -- that -- is does that actually make a dent is that a possibility too I'm not sure what the percentage of gluten free products are pains of a couple miles.
But it's it's growing.
Some for health reasons some for medical reasons.
And retailers are starting allocate a lot more space organics and that's really where -- kind of has -- dominant -- as well -- great to have you -- great to be -- we will come and had a have you given you'll do another guest -- and we hope you'll have as good success is it that the last time I would -- we will put -- stock picks up on our FaceBook dot com slash.
Liz Claman page thank you general see you next time thank --
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