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Get downside protection for rocky road for stocks

Friday, April 08, 2016 - 04:44

Earnings growth is trending downward, says Fiduciary Trust's Carin Pai, so diversify the portfolio and buy tech and healthcare stocks.

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Energy stocks leading the markets mildly higher this Friday. Join now for a closer look at the markets Karen hey she's director of equity strategy at fiduciary for a while there. That equities opened up by as much as oil prices that are up 6%. Investors sort of in this crisis mode. Well I think generally the economy is in local and and snow and it GS was commodities. Reflect that slowed growth environment and we also have a lot of volatility in the market has been associated way the price movement and energy space and a lot of what's going on there is having. A there's a relationship between Hannity and of course what's going on times interest rates so there's a lot of market fluctuations. Tied to economic growth concerns. It has four it remarked you have the sharp runup since mid February. Are you conscious in terms of how that the likelihood that will be able sustain Israel. We're actually taking more cautious view here. We see that recovery that we have seen over the past month as a as exactly what it is that recovery from the sell off that we saw and and on January. And we believe that it is worth while to think about downside protection and this and this environment. Because of our as as I mentioned our concerns about global economic growth. We have. Heard Janet Yellen refer to. The slowdown in global economic growth as well as concerns about. Currency movements as well as. As well as. Market volatility in financial risk to act indicate that the Fed won't move as quickly as they might. Be able to just based solely on US economic outlook. It's a downside protection with sort of dances protectionist. We are thinking about a portfolio that has. Diversification and we're looking act. Also opportunities in this market volatility as well that's an environment where. We think that we can. We can make money by being active managers be by selectively investing in certain parts of the market that we feel are attractive. And those parties see attractive. We actually like for example. A number of characteristics that we look for in companies on in this market environment. We're looking at companies that we think have durable growth. We like dividend growers and we also like companies that really embrace technology. And what do it what I mean right durable growth companies it sound company act less reliant on. The pace of the economic expansion. It is a company that we think has. Participation. And some long term secular growth trends for example and mobility. Connectivity. Or it could be a company that really has a strong brand has strong product cycles. That will do well on its regardless of what's happening to the broader economy. Well also talking about company that is less reliant on low interest rates. And a lot of companies have been able to generate growth. By taking advantage of low rates either to share buybacks. Or mergers and acquisitions. So. We need to make a distinction that protect what's upset present within. With the technology we think a lot of companies are willing to spend. On technology that helps them boost their productivity. We also think that technology companies that help. Putt their customers analyze data intones how they're consumers are. Behaving and what consumers are looking for will be will have a competitive and it's so. Companies recognize the need to spend on technology that will help them make their business we also think that. Health care actually is another great area where there are some opportunities certainly with the weakness that we've seen of late. Health care will continue to meet unmet medical needs. And we do have a growing population. Aging population. And there is still a lot of demand for. I T that will improve the health care system. It was also those thoughts bit of evidence to fill this Pfizer Allen again Mercury yes that's what we're doing here you our thanks Dick Karen hey at fiduciary trust. I'm Fred Katayama this is.

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Get downside protection for rocky road for stocks

Friday, April 08, 2016 - 04:44