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Profit growth is key to turning around sentiment - Kempler

Wednesday, January 20, 2016 - 04:02

Blame uncertainty for the massive selloff, says Susan Kempler of TIAA-CREF. She says investors need to see earnings growth to get back into the market.

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Stock show lacked the Dow down more than 500 points for one it's busy market they were joined by Susan Kepler portfolio manager TI press. Growth and income fund top rated Lipper fund while since. Graham crude holding the markets hostage. I don't know creates holding markets hostage I think the problem with the markets right now as there's a lot of uncertainty out there and maybe risks that people don't know. Where the risks are. We got this and 500 at trading at its lowest level since February 2014 to 15% from its eight feet. Were already correction are we headed for there of the market. I hope not that I don't know I wish I had a crystal ball we can't protect the markets what we can do is. We do our work. Buy good stocks and hold them for a long term what are you doing right now in terms of buying good stocks and what actions have. Well we've been sentenced pretty much needed. Fourth quarter last year we've been taking profits. As we do all year long but really focused on. Looking at valuations looking at her target prices seeing which companies are fully valued. Taking profits in these holdings and rotating towards companies which. Have lower valuations. But just as they grow so what do these old what he picked up. Well we have picked up Coca-Cola. And it's the first time we've done Coca-Cola and quite awhile. We really like it at this point because new management changes they've gotten Turkey and is still the CEO but they've hired new CF. And you see. And new chief marketing officer. I'm in addition there are now focused on. Profitable growth not the volume growth at any price there also re franchising their bottlers that increases their return on invested capital. So we really like this company. Electing your portfolio you've got energy stocks making it roughly four point 8% hasn't ended December he may have changed since then but. Is it time to bottom fish for some of these oil producers or just too scary out there is some Schilling's possibly going out of business. Well. I really. Tend to be pretty risk adverse and I'd rather know whereas the bottom and missed the first five or 10%. And increase our weddings at that point. We are underweight the sector vs the S&P 500 which is our benchmark. But it we own the quality companies so when we're ready to increase are waiting we're just gonna aunt to the existing stocks that we have with in the portfolio we've got a nice mix of integrated with Chevron and Exxon. And nice mix Ian. On concho and EIG. And pioneer drilling and a couple of other. As they kept things for for now. The stock market action that we're seeing today is this possibly able wash up situation that the force some. In the market see we need to see for stocks for investors get back into the market I don't know I can't predict the best I can do is find good companies that should be able to out perform in any market environment. What do you think investors need easy to get them back in the. I think we need to see earnings growth from companies right now we're just at the beginning of fourth quarter earnings. On they started. Last week but there really in full force this week and next week. We're gonna get a picture of what these companies did in the fourth quarter and the CEOs are gonna give us guidance as to what date in 2016. Can look like. At that point we can have a better sense of where valuations are. Mostly we think of this as to how much were paying for every dollar earnings is companies are generating and then we take it from. Things pluses for joining us thank you for raping me I think if this isn't careful of TIAA-CREF. I'm Fred Katayama this is what.

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Profit growth is key to turning around sentiment - Kempler

Wednesday, January 20, 2016 - 04:02