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We do have shares of Citigroup today falling after the Financial Times reported that the banks suffered a sharp drop in trading revenue in the third quarter but.
That is not scaring our next guest away at all it's one of his stock picks today joining me now mark pushing me he's -- in Montgomery Scott chief investment strategist -- city.
I look at this company and I say they own it they own that sort of global.
Bank for consumers that's out there but it is a little disconcerting when you -- that they have the sharp drop tell us why you're not worried.
Well is because they don't think it's something that is specific to Citigroup I think you're gonna see that this is an issue that is a common thread throughout a number of the big money center banks.
JPMorgan and others of the world so I look at this it's a short term phenomena context that the much stronger secular -- that you point out which is a huge non US particularly emerging market footprint.
OK so -- go from here would you be -- on the -- at the moment.
Most definitely the stock trades that -- percent below book value among the cheapest of the big money center banks not only here in the United States but even on a global basis.
And -- the long term prospects are -- to continue to unwind its bad bank.
Where is the troubled loans our house and I think eventually lead towards raising their dividend which -- increased a whole new area sponsorship in terms of investors who were seeking out dividend paying stocks particularly in the financial services area.
Mark you've been in this game a long time you're 58 billion in assets under management you've seen problems you've seen great moments in the market.
I -- much less experience with with about fifteen years under my belt when it comes to being the financial journalist your pet but I look at this and I say I have never.
More so than I have seen in the last two years watched Wall Street climbed the wall of worry.
Just as everybody was terrified about Europe then never Cyprus -- that Greece all of these problems tapering to taper to not to taper and -- it keeps going higher.
What's your here in prediction.
Melissa we have a constructive view on equity still even quality of advance as far as they -- putting aside some prospects for some near term turbulence over.
The debt ceiling debate indicating resolution in the number of other issues of course we could list.
We still think we finished the year higher than where we are today.
Our year -- target is 1720 to 1715.
Which is out of the money from here -- nice appreciation him might even result in a better entry point over the next couple weeks that -- for even greater upside for investors or.
Waiting for a better opportunity to step in.
And and he's not a Johnny come lately folks you know he was back here in March and he pick names like Halliburton and Microsoft.
Everything's up double digits and and even beating the S&P 500 with Halliburton up about 25% you got Microsoft better by 16% since you picked it ConocoPhillips.
These are names that are are very solid would you add to the positions that you had called back in March here.
As we still like those names are known them in our clients' portfolios still still think he offered good value -- the prospects for the sectors that -- in energy I think remained bright.
As is the case for technology the same particularly with the potential.
CEO change in the offing in Microsoft so -- good news I think still yet to come on those company.
OK so then let's bring you -- aside from city to new companies that Eli cannot I guess second begin with Emerson Electric this is one that's -- already about 29%.
Over the past year you think there's more room to Iran why.
Good quality company low debt burden about a two and a half percent dividend yield the industrials are sector that we like because we believe that we're going to see an -- -- -- capital spending -- -- go forward basis we know corporations are in good shape.
Tons of cash that's been sidelined as -- animal spirits are rekindled.
On the back -- what we think are tentative signs.
The synchronized global growth.
Period and I think you're gonna see more coffers opening up to spend up things that have been under invested in.
Ann Emerson Electric sells a lot of that kind of stuff in the electrically equipment space.
And you also like Qualcomm but I wanna get to your number one money maker because a lot of people come on here and picked Qualcomm obviously it's.
It is the sort of Smartphone chip company at the moment but -- your number one money maker traits as an American depositary receipt and ADR.
So you'd have to buy it that way but let's talk about it it is a financial.
-- -- -- -- -- obviously doesn't come immediately to mind in terms of when you think about banks particularly because it's -- course have to be Paris France.
But we think the Euro -- -- some of the cheapest financial institutions by measure valuation price to book value in the world bar none.
We look at the European situation is it.
-- that's curing it's not particularly robust but at least -- than we know we've had a positive GD prix GDP print of recent.
And -- PMI readings across -- manufacturing and services.
Are actually up to two year highs at this juncture so on the back of that would be in peak Airbus having a big retail footprint not just in France but across the Euro area.
We think that's a beneficial way to take advantage of improving conditions across the Euro area.
And Johnny feeding -- the CE over there is some of fine job leading up company up 33%.
Year over year.
Year to date mark we love your perspective thank you so much please come back.
Thanks Louis mark -- he is Janney Montgomery Scott chief investment strategist.
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