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Stay away from big bank stocks - fund manager

Monday, April 18, 2016 - 03:42

The big banks like Morgan Stanley and Citigroup keep beating analysts' profit estimates, but Dan Neiman of Neiman Funds Management says don't buy major bank stocks now.

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Wall Street reversing a morning decline with the energy stocks leading the way. Let's go to our Los Angeles bureau to discuss the markets at the end even he's a portfolio manager and partner in Neiman funds management. Again the Dow and the S&P 500 is nearing their all time highs with the dioxin recapturing an 181000 level. You see is those indexes making new highs for this year. You know I see the next indexes making new highs and obviously I appreciate that like CDS stocks or mutual fund go up. But I am worrisome that. The market is a bit overpriced here and I think we'll see a bit of a drop back as he approaches them. Well I'll we've seen energy stocks that today again leading the S&P 500 even blow. All oil prices are lower following that and a lack of an agreement until hall on the oil visas over the weekend. What do you think is going on here what won the split in now what prices and oil stocks. Well our intimate recent articles I've read some stuff I've seen is that via the lack of agreement actually might help heal stocks going forward. But it also seen a poll in upward momentum in oil prices general the past three months adding that that's how close. Oil companies in general over the past few months and I think I've seen is both the stocks are fund Chevron. To name one it's up pretty well your date and I think going forward as positive Pozen knows prices but he short covering that we're seeing today. You know like I actually stay away from the short short side of the market that. I think lat one of the strategy we employed an argument like that night on selling covered calls. And so we see stocks going up. Maybe selling calls against stocks in the bonded on that currently the past few months and going out to a three months trying to capture option premium. And that helps the status all price on the top stock. Again I Hasbro Walt Disney they're leading a rally among consumer stocks today I have her on earnings and at Disney on a stellar we can for jungle book and a year. Let's get the iPhone is overweight consumer cyclical stocks are still and consumer stocks you're books. Currently our out in stocks but I do like stocks in that area specifically Nike's one. Yes of course the next stronghold of ours for quite some time. In a similar retail stocks are in particular ones that we focus on so while not adding stops I am holding what if you and and I like those. Especially for their global reach. Going forward all right Morgan Stanley was latest big bank and it. Report sharp slide improbable those profits beat estimates and the stock initially rose it's a common pattern we've been seeing the big banks. Do you possibly see the market misinterpreting this means that they could be more likely raise rates sooner. A lot not sure whether that's gonna do although I do think they should raise rates again although that I think it's in the quarter point range. And well in case if you rate increases over the next. In over the next fiscal year I think that he had a big banks are still the fight for profits and acting bit. As a whole and our fine I've gotten away from some of the financial companies although still hold one or two names I think are more diverse I specifically Canadian bank bank of Montreal. Diversified and it's a Canadian market and I've stayed away from really the retailer that big banks here in the US. I in the past and I am constantly in the future and why so. I just feel at the interest rate environment and media. Although there is earnings the other good corporate growth and in some areas I assume there's a lot of risk in those in most of those stocks and has been a lot of risk in the past. Okay thanks plugin for sharing your thoughts of us. I think today Neiman of demon funds management I'm Fred Katayama this does royalties.

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Stay away from big bank stocks - fund manager

Monday, April 18, 2016 - 03:42