I had the pleasure of speaking with Maria Bartiromo on Mornings with Maria about the market and our expectations for the earnings effect on stocks.
Great time for investors to put their money to work in stocks?video cc: Fox Business
Posted by Parrish Capital on Friday, February 26, 2016
Maria Bartiromo: Okay, let’s talk about recent volatility in this market. Have we seen the worst for ’16, or is there more selling to come? What’s your opinion?
Teddy Parrish: Oh, you know, I think it’s gonna be based on earnings, and we’ve already had a lot of earnings revisions to the down side. If we can have…if that abaits a bit I think, we’ll have brighter days, but I think the jury’s still out on that.
MB: Earnings down 4% in the fourth quarter? Not a great showing for the fourth quarter for the S&P 500–
TP: No, it’s not, and the first and second quarter aren’t looking too good as well. We’ve seen revisions, huge across the board. Healthcare even had revisions to the negative side. So I think that’s been overdone. So maybe, we’ll have some positive surprises from that lower base in the next few months.
MB: You want to put money to work in stocks?
TP: Always. I think that the market is really inexpensive now, some values in a variety of sectors. It gives my clients a chance to actually participate in some industries that we hadn’t had exposure to.
MB: We talk about the Fed all the time and Dagen just feels like, “Look, they’re out of bullets, right, Dagen?” I think that they look…Central Banks around the world look lost and powerless. And even when they’ve taken interest rates negative, there hasn’t been a positive reaction. I think that even if the Fed tips its hat and says, “Oh, we might cut interest rates.” I think the market would sell off on that. Do you think it?
TP: I mean, here’s the thing. How much stimulus is it going to take to actually get the market moving and keep it moving? At some point, we’re gonna have to realize we just got to let it play out. We’re long-term investors, so you’re gonna have to take the good with the bad.
MB: All right, we’ll talk more about this. Stay with us.