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Ross Gerber on why he expects another 5 percent market gain

Wednesday, June 08, 2016 - 03:38

Ross Gerber, CEO of Gerber Kawasaki talks with Bobbi Rebell about his optimistic market outlook, what could derail stocks, and why he is looking to the Olympics for investment ideas.

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Mean once again the focus for the US market let's get more from roster where he is CEO of Gerber palace backing and I just from our LA bureau angry at you. Thanks to our yesterday speak and have the energy markets recently more room is there here for us to expand ports. Well I. I don't think there's that much more upside. Because I think once we get back to sixty that's kind of the equilibrium where it's that you know in between fifteenth sixteenth the past for everybody and we're gonna see more production come on line. Once we get oil prices little bit higher which we'll tamp down. Prices so so we we think we're kind of at this week spot now for oil but there's still a lot of opportunity in the different producers and distributors while. The S&P getting very three new record you are watching for sure like are more. Well essentially the overall sentiment is so negative in the market and Vermont's an end for somebody immediately. Beatle reasons but then also those reasons reverse themselves like. Energy prices doubling in the last three months almost and takes a lot of bankruptcies and financial stress off the table we've seen some you know. Actually stabilization instrument in China and so the main reasons that we act concerns are on and as the market pushes higher. As people feel more confident about the US economy. Moving forward it because the shorts to all of us and reassess that are in other positions in and really you know remember when you sell us a stock short you do have to buy it back eventually. So there is a lot of actually hidden behind our mind what could be a big rally in the market. So how big rally keeping. Well what we're looking for now is that the market can move to 2200 on the S&P so we could see another 5% gain let's say in the stock market on the shorter term. But we do think that earnings have to improve so until we see. Earnings estimates revisions especially energy and materials sector which is really way down S&P earnings. We need the key part of the PE ratio to really go higher for the markets to make a substantial move higher and we do expect that over the next twelve months ago. So that bodes well for stocks. Harry how weary investors should be putting money you're watching the upcoming Olympics for ideas. Well sports they're just so in right now so we've got two trains one is that our society is as large we have more obesity in this society than we ever had in the history of a man and women and we need to address that one of the things that's been addressed has been in lifestyle and fitness and so this is new or track and towards being fit and healthy that's really growing. And act leisure people wearing. Athletic Wear as well as the amazing sports events we have coming up with the finals in the NBA as well is moving into the Olympics this summer and sports are really in focus that we like under armour and secondarily Nike in this market. And in particular under armor that they have so much growth potential internationally. And in the women's clothing business. Are any red flag up there and that's ocean view area. I think the biggest issue that we we look out right now is what the Fed does we think higher interest rates would be very detrimental to the economy. This economy is still very fragile so we're watching with what the Fed does very closely. And we don't think the Fed's going to raise and we think it's very important that they are very conservative about. Raising rates in hip thing now what we see is increasing growth right now so. So it's worse still fragile stage in the economic expansion and I don't think we won. Any of the punch ball being taken. Aaron thanks rough. I think you are saying you rock opera at Gerber palace packing by about this as partners.

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Ross Gerber on why he expects another 5 percent market gain

Wednesday, June 08, 2016 - 03:38