Also in this playlist...
This transcript is automatically generated
So just how seriously should investors view the recent sell on the market is in temporary blip or.
The beginning of a long lasting correction in the spring and Tim Holland -- -- -- -- funds portfolio manager in to break it all down force.
By the way guys -- attempt you know this is a moment of truth sort of the markets were rough six weeks in a row now we're down two weeks in a -- But there's a lot of anxiety out there and it feels like -- there are any bit bad news items out there people probably gonna sell first and ask questions later.
Would that be the right move.
You know the way we approach is Charles as as -- Market of stocks not stock market -- stock -- that camera capital but I think you bring up a good point I think anxieties pretty -- the markets had a great run.
And everyone's watching the bond market and the backup in rates and is that gonna kill the golden goose which is a consumer and housing and the broader economic.
Rebound or you can we sort of digest marginally higher borrowing costs get through that transition stage in and power ahead.
We think on balance we're gonna make it through that.
Transition say is go to probably be a bit bumpy between here and there.
They're -- is sort of like gone over Niagara Falls and a barrel -- me let that we've got we've got to -- a nation that's created enough of a part time jobs at the last -- -- jobs report.
Average weekly earnings actually went down.
Here we just talked -- called -- ladies are retailers are suffering they're saying people run out of money so.
How do we powered through the -- Period.
Yeah I'm -- you know there's always a bit of bad news we think there's some good news out there to Charles and when you look at the economic data.
Retail sells things like that you know those numbers are always subject to.
Revision and -- their pockets -- weakness but there's pockets of strength.
-- -- for us it sort of does come back to the consumer.
Does come back the -- and does come back to banking.
We think on -- he is economy's in pretty good shape not withstanding some disappointing earnings results because there's also been.
Some pretty good numbers out of consumer -- as well so that's -- we're focusing.
More on the consumer more on the financial services names.
What about the outside influences the market you know one of my great investment pieces that's worked out may be as lucky but.
I like the fact that the global economy has been grown -- we saw some good signs out of your purple ball places this -- yet.
Yeah I -- imagine if -- actually finally hit bottom and ended more than bottomed out but actually turned.
A little bit and you know were more domestic facing the camera capital but the news out of China looks a little bit better.
Then not as well so -- David decent economic recovery here at home Europe may finally be working in.
China may finally be moving higher as well so again there's always a bit of bad news but on balance -- some good news out there to.
-- -- -- -- that you guys focused on in the middle opportunities.
Have you have a -- -- have a game plan if there is a -- induced a market for us sell off you know the Fed -- they -- timber.
In the knee jerk reaction is for stock to sell off.
Is your strategy to go out there and really start the load up on the names that you why can make you want right now you have a -- list.
Yeah the way we -- take advantage of that volatility Charles to the downside.
Please visit our process -- -- our philosophy look for companies that have that sustainable competitive advantage.
Where the potential upside is at least three times as great as a potential down side.
You know on the market you know can scare the heck out of people in the near term but -- we turned -- take advantage of that volatility.
Add -- best in class companies have more attractive prices lower average cost basis and if -- India that.
Historically over time you're gonna be well rewarded and that's what we turned it Tamil capital.
I like that would you -- at 321 written ratio that's restored people should kind of keep that in my I think a lot of investors halves.
I hate to say but sometimes the one to one ratio was up two -- I'll take it it was down -- bucks I'll sell it and they wonder why they never get very far temp.
-- -- -- -- -- Now as is they're saying get whipped around pretty quickly especially as you go through these volatile -- -- having that philosophy having that process in place is pretty important.
Can you share few -- with us.
Yes you're sort of coming back to the consumer coming back to.
More domestic face -- industry is one that we -- in the -- camera diversified equity fund Charles.
His best buy everyone knows the company has as a consumer but it's been a pretty controversial name because it's suffered for so long.
Prior manager put it down to the concept to show remain that everybody was walking the stores were buying online.
You know if you take a closer look that was part of it but really prior management.
Did and invest back in the business the board went out got a fantastic new management team including the ex CFO from William Sonoma.
They've put in place a fantastic turnaround plan including the store within a store dynamic which they're doing with Samsung which are doing with Microsoft.
Profitability is very depressed and violations very attractive and that's one that we we like very much and then -- and in the diversified equity fund this stock dispense.
I think that was contrary and home run I mean you know most people had -- on and death watch and what's troubling -- -- the old management came to.
I think they almost got away it was still -- -- company and I don't blame for trying but then people might think Tim the stock is double let me are you seriously -- -- -- chase is here.
-- -- you know just because something's up a lot doesn't mean it can't go out more and just because some things down doesn't mean it won't continue.
To correct you can't look at price in a vacuum Charles as you know you have to look at price relative to fundamentals relative to valuation.
And best buy trades at a fraction of revenues.
And it doesn't have to do much in in in the way of sort of expanding -- multiple for the stock to continue.
To work it's got a great brand.
And it's kind of just a cracker Jack management team it really is all about the people driving the bus and we think the folks start in the bus at best -- -- really doesn't.
I can tell you when I'm done here money go by their pick up a couple had CDs on the old school guy keeping him up -- we've got some breaking news troubled -- -- have a great weekend and thanks very important that there was among those but we do have to go.
Filter by section