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During the Wall Street stocks bouncing back days that market recovered some of its losses spurred by fears that the US could use military intervention.
In -- joining me now new -- at that -- pitching equity strategist.
-- skinny and rich senior portfolio manager Bob doll it's good to -- Bob.
Exploring I hope you heard our previous story talking about the -- people would rather have debt -- beef -- Yes they did give me any of that an airline of -- story.
-- -- exactly exactly.
I don't know which is worse depending how much dead or how much fat I guess.
Stunt like by the way here is we have a slight delay with you Bob let me just get your take on what's driving the markets obviously two days of losses today we bounced back some -- in the headlines also some.
And -- -- if you will economic news.
Yeah I think sit down look the Syrian thing is -- is new.
We've had plenty to worry about the fade tapering.
We've worried about who's the next step Fed Chairman going to be.
The debt ceiling.
It's gonna come up again this fall.
Certainly were worried about how strong -- revenues and earnings that beat.
And now you add this on top of it which is created some higher oil -- prices and the market's kind of gone into a bit of a funk.
I think Kim -- in this side -- pattern -- that might last for a little while.
How does a little while how much -- you know look at what kind of funk are we looking -- I mean it's historically a weak time of year for the stock market anyway right so what would you advise clients at it this time.
I think the cyclical bull market we've been enjoying for a in our fifth year now is is nowhere near over.
Probable markets don't go straight -- we need in my judgment for the next noticeable leg up.
To have stronger revenue and earnings growth.
I think we'll get it I can't prove it to you and I don't think it starts tomorrow or the next day so this will take some time to unfold.
So what sectors have the best potential for revenue growth.
Well I I think the health care area remains the one defensive area that still has decent growth.
Some of the product companies whether -- be pharmaceuticals.
Is one area.
I think some of the industrial space that down.
Including aerospace defense not related to Syria necessarily but the free cash flow there is strong.
Technology is a very controversial area but I think we'll see some revenue and earnings growth there and more importantly some free cash flow growth.
Do you think that I need to break it down even more.
It in a more -- -- fashion look at more mid cap small cap right now to been outperforming.
-- look I I think the reason Dell -- if you will small and made his outperform large and may get.
Is largely related to where the earnings have come through.
Of the smaller.
You get typically the more domestic the contents.
And as I like to say the US is lived up to the low expectations the world had for us.
And so companies would be domestic content have faired pretty well -- the multinationals.
And of course some non US markets year to date that have not done so well because those economies have have have not faired well so.
Adele -- -- bias if you will I would endorse and would you endorse.
Increasing my cash allocation right now or you still comfortable with the stock market even though we are in this carried -- funk to quotes about.
The other the phone to me -- means side why is not necessarily down I'm using a broad -- trading range.
To 17100 on the S&P 500.
At and -- in the middle higher -- the middle part of that range as you know.
So I wouldn't have a whole lot of cash I think the next move up will be -- -- the next move will be to the upside but.
As I said it may take awhile to develop weeks may -- few months.
All right we've got our seatbelts fastened Bob -- always a pleasure.
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