Skip to main content

tv   Bloomberg Markets  Bloomberg  February 23, 2016 3:00pm-4:01pm EST

3:00 pm
no additional reserve build if everything stays where it is right now. >> yeah. -- we willtoday decide what we really think at that point in time. and she said 600 give or take. do not sit and say, 700. if the curves stay where they are today, it should not be much. question, market activity, are there any early conversations with clients looking for plan b? instead of issuing bonds and coming back to the bank market, instead of ipo, those conversation starting?
3:01 pm
>> i think we know a couple. where did daniel go? there are a couple where the big backlog of ipo and liberal -- leverage finances. a couple of deals start to take place. it may be possible better. if it waits much longer than that, yes,. -- yes. [inaudible] -- [no audio] >> when you say the weakness in the u.s. big bang, that would make a difference. -- big bank, that would make a difference.
3:02 pm
in europe.g well we gain share in capital markets and investment banking. i think we are a great partner, county party or custody. a great party for his folks. have gained share in some of the training areas. we think we have gained rates from it. it over a look at one-year or two year period. classy environment has changed in a way they are not helpful when they are actually forwarding. he look at the positive pricing, if anything, we are asked to thing less height. 25, may be more profitable than what you have thought initially?
3:03 pm
is most the first profitable. the second is a little bit less. it just goes 10 k, how much of that goes in the short end. 2.6 billion. >> i feel like there might be an obvious element to this question, but as a reporter, you bought a lot of stock. what was going through your mind, the disconnect you see in terms of what the market is worrying about, or short-term versus long-term? >> i cannot trade. it is not like i will sell it tomorrow and put my chips on the table. this company, if you look at the results and the growth and the isnings power, results, it pretty good. i bought it and it was 48. i will buy it all day long at 48.
3:04 pm
or money at even 13% per year, that is a great investment. of performance in terms compound is great, you talk about a million different ways better than volatility, the consistency we have had through the toughest times is probably a good sign and not a bad sign. i look at it as a good sign and not a bad sign, down more than people expect. to earn that kind of money, to have a consistency, it is fabulous have the largest we have. i look at it as a good long-term buy. >> a couple of questions on the capital requirements. we have a couple. >> i was not doing anything. [laughter] a little excitement for myself.
3:05 pm
>> i appreciate that, that you were bored. the questions on capital requirements, we obvious we have this offer to see what we have -- as well as his the buffers put out in december. i want to understand how you are andng about that as you go how you think about clients and the degree to which you can pass some of those on to clients here. >> we do not assume it passes at all. we have to become more efficient hours else to make sure we earn an adequate return. it is probably one of the last major things we have to do. last probably one of the ones. the resolution and finally the rules are there, we know we will go to 12%.
3:06 pm
we know right now we do not believe anymore, but the one thing may change that. we will deal with it when we get there. we only thing i will say is are doing fine now. if you had said we have pretty much double our capital over a ---year or evan your time, or seven year time, part of that was the line, part of that was straight processing. we're comfortable earning a fair return. repricing is one thing but strategic changes, we benefit from a shared change even if there is no repricing. people caught him saying i want to make sure you are one of my banks. what can i make this -- what can i do to make this make sense for you. nothing repriced. so you could pay me a lot of ways that do not create any capital or charge, and we will
3:07 pm
be very happy with and make the relation makes sense. we have broad center options to client, region, country, to make sure they're getting returns. >> then this year, coming supposedly before the increase on next year. do you think about that when going through this year's process? through ther we go process, we will probably go through a hypothetical, one points, two point, or three points. how much do we still have over that? it will affect how we think about the future. >> they made it clear they want to see capital go up kind of ended will go up anyways the way we look at it. >> you have presented a reasonably constructive view of
3:08 pm
the united states economy in the operating environment. markets have taken a different view of this and last six weeks. it hundred basis points, the european bank trading and every american bank down 20% in the first month. do you have a theory on that? it seems to be discounted way more than half gets -- van pockets of weakness. >> the great quote of all time was the stock market protected nine of the last five recessions. it may be right and it may be wrong. credit spreads or stock markets, they could both be right and they have both been wrong. it not really change our strategy. chase,s of j.p. morgan it is not going to change what we do. it will change results. i do not look at it as a
3:09 pm
business matter. you all can guess the future and you have to make that decision when you buy stocks. i don't. i do not really have to worry about that. we do almost the exact same stuff anyway. belief is that this will settle out and the u.s. will keep chugging along. that is my personal believe because the actual facts on the ground, home prices, wages, the balanceales, sheet of the consumer and corporations, the setting is not bad. the united states is not bad. >> one further follow-up on the investment side, it has been consistent over time. i am wondering, does investment spend scale over time? does the investment dollar become net more marginally profitable? within that, those regulatory
3:10 pm
compliance get to the point where it becomes less bad and is there a way to scale regulatory compliance? jamie: we have added a tremendous amount. it is leveling off and meet we can streamline it and make it better. hand,ectively did it by that we were going to be able to do it by machine, and it would be even better than we were doing before. we had timetable. no way to meet it. in terms of regulatory compliance, think of it as topping out eventually by this year and hopefully it will become more efficient. a lot of these folks already include that. to double count we sit in these meetings and we talk about kelly open, we have found 20 new sites and we can
3:11 pm
open branches, 30% mpv or whatever you like, my reaction would he to go for it. we will be sitting here in two ears saying wiry earning more money? almost a $1 million year profit. the actual capital is $2 million. the marketing we do is exactly the same. we told you $56 billion of expenses. it is not a commitment we feel it we have to meet. at the end of this year, was and another million dollars in marketing. you want us to spend that marketing. we would spend it. it is a very high marginal return if we get it exactly right.
3:12 pm
>> if we look at the competitive environment, there are a number of different products acting in a way that may be reflect their own situation. needs to go out and market aggressively and maybe the market would not argue with this approach. there are certain things across the spectrum, certain dynamics? >> is that dynamic different? the competitors are just repeat -- competing different? -- this is still a deep competitors in some of the countries we are in. we'll is have people doing smart stuff and people doing stupid stuff. that has been going on my whole life.
3:13 pm
if they had not been doing stupid stuff, i would not have this job. richard fairbank's is the one who came along. richard should know we have a new car coming out that will compete better. i think it has always been true. there will always be tough competition. if you do not feel it today right there, it will be back there right there. you make the right investments, do not assume and make a lot of assumptions. it is unlikely to be true. these big portfolios, we made the decision to lock them up five years. could we have tried to not did so well on that, yes, but we are winning and losing.
3:14 pm
it goes back to a marginal profitability thing. the margin loss is another thing. >> thanks. i am thinking about revenue growth. something i get a lot of questions on and i think about. i'm looking at 3% growth. it is not a lot of noninterest growth. slides dedicated to the treasury services, and to the other segments. if you look at trust banks, they have had a heck of a time growing revenue for years now. thinking back, it is not really the best growth opportunity. just wanted to give you more detail that what he is doing.
3:15 pm
it is more important than anything else he is doing. there has been very little growth. i want to point out one thing. you said to me today, you could open 5 million retail accounts with average balances and stuff like that, the margins of those accounts would be not white half but a little better than half of the averages. drop.ficiency ratio would our profits would go up. should i open the account or not? it would be crazy not to do it. the prophet will eventually double and he will be very happy ultimately hurt and you would actually be earning a money on it, just not 15. my answer is to keep your eye on the ball. we a lot of stupid things that
3:16 pm
look like growth that are not growth, like we talked about that expenses and good expenses. i would say the same with revenues. anyone can create bad revenues. out, there isnted no assumption there about any growth. any assumption about pricing and things like that. we're in a good position to grow our business. you will see -- you will pay more one way or the other. everything stayed exactly the same. it is just not possible. we will wait and see. quite a few are listening to jamie dimon pair this is the question and answer section. the stocks trading down or .2%.
3:17 pm
return now to jamie dimon. >> why would it become another 45 billion [inaudible] why would we see the companies pull that down? jamie: so remember some of that, the largest part of investment-grade companies, they are not going to pull it down. they do not need it. butan put our preserves they are not going to pull it down. they make some assumptions about other stuff going down. we do not exactly know. >> $1.5 billion, with all the necessary caveats that went into dramaticwere quite tour the assumptions there. a little less down stream when we try to make about it, we try to have it in our lives, we will
3:18 pm
be wrong one way or another, but that would be contemplated and be reasonably significant with all the other caveats here it jamie: -- caveats. jamie: for us, i don't mean it in a bad way, but i would put it in a drop in a bucket category. you -- things that have that are at dramatic and only if -- affects me that much, that is a good thing and not a bad thing. possibly small banks and regional errors and stuff like that. >> big banks have been in the news with the presidential election. ahead of the minneapolis fed. i do not want you to go into should you break up or not, but if i want to explain to my mother-in-law why the bank is good, in simple terms, your best what would be your answer? a 77 is a good airplane and it is very safe.
3:19 pm
a lithium battery or a turbine engine, that is really hard to do. we have a hard time explaining those things to the public. we make loans and help companies and communities. we did not need funding. we are diversified and strong. we help american companies run the world. we do a lot of things other thing's cannot do. that is why i think you need a big strong american bank. we are also the largest ranks. one of the smaller banks, a regional bank wrote a letter, bank on bank violence with larger banks. i called at the ceo and i said to him, i just may list of what we do for you, just you, one regional bank. we buy and sell mortgages and settle dollars overseas. here,ding, trade with him provide finance with them,
3:20 pm
turbine is with them, m and day and bonds for them. do those things because you like and need them. it is hard to explain to your mother-in-law exactly what you do and why. [laughter] me point out, we put these tapes appear and these videos, and one of the things we do, and one thing you need to do as some of the investors and analysts is the quality of the management team. as opposed to me tell you, you see them yourself. sit inestions and meetings, what they do and how they can answer questions. they are pretty exceptional and not just the members you percent up here today but a lot of people, i know a lot of you meet those folks. the other thing is we do move
3:21 pm
people around quite a bit. a lot of these people are running credit services, custody, the investment bank, we move people around. we can take them and move it to a part of the company. it is a great thing for us. they will be treated fairly. i hope you see that yourself. worriesis your list of domestically and internationally? goods.e us a list of what is a list of worries? jamie: i gave a list of worries. what is the sentiment, what are people thinking, what are they worried about? i want to tell you have always been wrong. i went there in 2007 and 2008. in 2009, they went into a depression.
3:22 pm
fear, fear, fear. every report that comes out to official institutions, they are worried. it is getting overdone, in my opinion. list is the same one. china, how bad will it be? is 4% and maybe it is 3% and maybe it will be terrible. in 30 years, it will be the largest on the planet. 1863. if you are having a risk committee about the united states right of the civil war, and you are in europe where all the money is coming from, you have said the places correct, it will never survive, democracies do not work, and we are not resting there. that is the argument i get around india and china. we look at how you invest. even if you're wrong, you're ok.
3:23 pm
yes i think it is very peculiar qe. it is one of the great experiments of all time. rate have torest make you cautious and uncomfortable. for threeuidity, reasons, i do not know how to measure the three. one was regulatory, extensive rules and regulatory changes and capital and cash and things like that. the second is market structure. the third is market participants behavior. they remember it and they are quick to jump. we see a little bit of that. there is the grexit and russia and the middle east. one bus reminds people he bought his first in 1942. there was one nation fighting the evil nations in europe.
3:24 pm
my hat is off to you. you did it for the whole world i yourself for a year. hadica was surrounded and been in depression for 12 years. a 25% unemployment. the resiliency of the country is astounding and i would not against it. matter whatno happens, you're ok. we have so far been doing that. and i am not saying to discount the risk. i would say to discount the market a little bit. the market has always been wrong. when i first came to jpmorgan, i said we would stress tests the equity markets. 50%, they thought i was crazy. drop 40 or 50% and has many times before. it moves likees, this in oil, this may be among the worst area it has moves like
3:25 pm
this five times in my lifetime. corn, sugar, chickens, oil, iron, interest-rate, credit spreads. prices move violently and always for some you problem we did not know about. we would like to be prepared for that kind of stuff. >> winston churchill is a great example of strong, differentiated leadership that makes a big difference. we have seen that in the great financial races if titian's. strong leadership prevails. and yet you still have, whether it is mother-in-law's or politicians or proxy advisory terms. every year you get a static about the combined chairman role. as a shareholder, i would like to see strong leadership. and you up every year have been in the press recently. share your thoughts. jamie: my thought has always
3:26 pm
been you have a board of directors to make decisions about how it should be structured itself. even the same business, even the same company should not be the same. i just would not have done it. there is a reason to have a chairman sometimes. why would you have an intelligent board of directors tell them what to do? i understand if you do not trust the board of directors, you should want a replacement. it work orn is, does not work for the company at that time? is the question to ask. the best i heard did not come from somebody else here he says that is where leaners tell millions with the milk test feels. [laughter]
3:27 pm
vonnie: you're listening to jamie dimon, taking questions from analysts now. all the negatives and the worries in the environment. he came away listening to. let's return now to jamie dimon and the jpmorgan chase d.l.. in fact, that was it. we have been seeing a bit of a selloff down 4.1%. is the worst performer in the dow followed by j.p. morgan chase. a strive into what shape he dimon said. our bank and reporter here is with us. laura, it seemed to be good cop, bad cop. on the european head earlier on saying all those things, trading
3:28 pm
down on the quarter. then jamie comes on and says no, everything is wonderful. what was your takeaway? same time, stocks fell as jamie dimon continued to talk. of the investment bank, he is on and he is saying, in the current quarter, we have had 25% of our investment banking's fault because we have not seen the ipo's or gotten market ceos of the ground. and then you have jamie dimon coming on and saying, there are a few deals in the works. he is saying we can see maybe a pick in march. he said it is very possible for the market to open up and as you said, it is seemingly a difference of opinion there. vonnie: positives as well for the u.s. economy at least very jamie dimon talked about home
3:29 pm
prices. wages, jobs, the balance sheets of operations. saying we are in a resilient environment. canto had said, for example, it will return to go. the in this for the long-term. >> he did not specify at all when that could be. could it be later this year or a few years time? you see some people who say we will never have the same kind of environment for fixed here it we will never see it come to power again as a powerhouse in trading. there are no details there and maybe at some point in time, they will give us more. do analysts get much from the investor days? that they are personally interested in and investors are interested in, some people ask about exposure. saw marianne, a cfo, talk a little about the mining exposure as well. it is a new concern people are bringing up on the back of
3:30 pm
energy being worse and worse. we also saw some different changes to the figures jpmorgan .as out saying they're probably going to have to have a earnings per share guidance pull down a bit. vonnie: jamie has been buying back stocks. it is a 52 and change now. he would buy it all day long. faith in thes stock. >> esp or the purges he made out there, i think we calculated it to be about an entire year of salary for him. he was putting his money where his mouth was. >> absolutely. mike said we should mention he is a thorn in their side. complains to his mother-in-law and jamie says, the 787 is a good airliner and it is very safe. he also said big banks perform
3:31 pm
-- thank you very much. we will keep an eye out and you can follow on on bloomberg and see exactly what has been emanating. a quick look at overall markets now. the dow jones industrial average up close to his lowest level of the day. the s&p 500 is down one and a quarter percent, 24 points. 1.4% now ass down we have been noting, financials and energy stocks beating the libraries there. let's get on with a check of the headlines. mark crumpton is manning that desk. and: delivering food medical supplies. living in two suburbs of capital damascus. the u.s. the day after and russia agreed on a planned syrian cease-fire to begin
3:32 pm
saturday. the syrian government and the main opposition group had conditionally agreed to the truth. president obama sent congress a plan to close the prison housing terrorists at kuan tom and obey -- guantanamo bay. the president said some of the public has been scared into thinking closing the prison would make the company -- country next safe. president obama: more than 85% already been transferred to other countries. more than 500 of these transferred data transfers occurred under president bush. since i took office, we have transferred 100 37 more, each under new, significant restrictions to keep them from returning to the battlefield. result, today just 91 detainees remain. mark: the white house is not expect congress to go along with those in the prison. the associated dress is
3:33 pm
reporting a new york city hospital has agreed to pay $1 million to the family of. burner. he was the african-american man who died after being placed in a choke hold by a white police officer. settlement was confidential but was exposed in court documents filed in staten island. are caucusing today. presidential caucuses are underway a day after texas senator ted cruz shook up his campaign. senator cruz yesterday fired his communications director for tweeting out a story accusing senator marco rubio of disparaging the bible. thefiring has not satisfy rubio campaign. it says there is a culture in the ted cruz campaign that no lies too big and no trick is to dirty. most polls favor donald trump to win in nevada. google news 24 hours day powered by our 2100 journalists and more
3:34 pm
than 100 50 news bureaus around the world. back to you. vonnie: thank you. markets close in about 30 minutes and docs are stumbling a little today, after comments from jpmorgan investor day. stocks.ch and biotech abigail doolittle is live at the nasdaq with the latest. abigail: back to your session lows on the comments. today's really being driven by biotech and big tech. on the biotech side, we are looking at bio gender it on the big tech side, microsoft. the worst percentage performer in an effect 100, we are looking at western digital after the company announced its cash in stock acquisition would close in the second quarter this year. . down 6% from its 2014 peak. taking a look at another loser at -- on the day, the worst
3:35 pm
performer on the nasdaq 100 last week, down today as goldman sachs cut the rating to a neutral from buy. saidst robert jones revenue growth is under pressure and his new price target of $54, at twoower than the old dollars, buying support and maybe they hold on and recover to trade higher. thank you so much. we will check back with you again later on. the housing recovery appears to be on track. sales of u.s. resistant homes -- existing homes rose january. were on a steady pace in germany to the economic expansion. the senior executive vice president specializing in real estate. thank you for joining us. talk to us about race and
3:36 pm
whether you anticipate any increase in the next two months. onthank you for having me the program. it is great to be with you. theyata points on housing, not only confirm recovery continuing. they really signal a stronger consumer than expected. on the heels of positive roots we have received in january, it really alleviates the concerns about a recession being around the corner. the message is far beyond just housing. it's these to a broader economy having strength and momentum. stillare legs left that have an expansion. as far as the fed goes, given the news of recent weeks, we do to seeect any time soon another increase by the fed. long-term interest rates have pulled back quite a bit in reaction to uncertainty around the globe. the return is helping the -- in termserments of housing affordability.
3:37 pm
the housing market is still remarkably shifted toward the rental market. 2015 was a strong rental market as was the quarter of 2015 for rental housing demand. customersat our saying question it seemed like it would be a fed rate increase soon. that did not happen and now, it is looking like increases more than four. >> there certainly is in heaven flow goes interest rates may be headed higher or waiting a little bit of interest rates are pulling back. we see the book on the commercial and the residential side of the marketplace. it is really fundamentals driven. in the market for a short time, not influencing the market as much. it is job driven and riven by
3:38 pm
the fact that supply and demand really favor the continuation of this recovery. whether interest rates move up or down in a given quarter or two, i do not think it governs the direction of the recovery as much as the headline suggests. housingre about preference and where the jobs are being created. we are seeing a fledgling bit of wage growth in the last few months or we will see that continues. talk to the inventory. existing home sales. new home sales are key for the lower-priced homes were renters to get into ag home buyer. is there enough for inventory, our homebuilding building homes? >> we do not see an inflated
3:39 pm
amount of inventory on the market. have gonesing starts up especially on the multifamily side, overall, housing starts are trailing housing formation and we are adding about one million units of housing. running 1.4 million. the demand is exceeding supply. importantly, though there has been a big increase in construction levels, single-family home construction is about 64% below the prior peak. that speaks to the strength of the market and the fact that we are not over building. vonnie: it also means it is more difficult for the families forming to go out and buy a home. >> that is true. on the affordability side, because of the wage aspect you talked about earlier in the limited amount of inventory, it makes it harder on the consumer side. i think on the broader economic side, the fact that is lowering the probability of bubbles even showh we are seeing metros
3:40 pm
10 or 15 or 20% price increases year-over-year, it will actually prolong the cycle and make housing less of a volatile sector than we have seen certainly in the last -- >> portland, denver, three areas where the home price index is lagging as an indicator but it gives us an idea that is all year-over-year major increases. some point get some normality returning to the markets? right. to your point, i think the markets will start to cool off a little bit. had a lot of negative news and concerns around us. bound to create conservatism on behalf of the consumer and on behalf of the company's. those markets that have seen double-digit home pricing,
3:41 pm
certainly we will start to see some easing. if you go back to where jobs are being created, they will have limited choices. it is part of the reason why the rental market is doing so well. staye consumer wants to flexible and chase jobs and have a lot of options, that is really benefiting the rental market. thank you very much appreciate your conversation. speaking to us in los angeles. the federal reserve president says there are elements to the economy that worried her. she tells bloomberg the strong dollar could be a headwind to manufacturing. she is worried about inflation expectations. those have proved to remain fairly stable, she says. george also saying today she has move on and just rates to allow the economy to adjust. you will be able to hear more of that on bloomberg radio. still ahead, another look at j.p. morgan chase stocks.
3:42 pm
shares are tumbling. the bank says trading revenue fell 20% in the first quarter. ♪
3:43 pm
3:44 pm
vonnie: .1%, a drop of 20 points for the dow 100 heavy points. the nasdaq down one and a quarter percent. lows of the off the day. it is now good time for private equity firms to cash in. jason kelly posted. a private equity conference in berlin. let's have a listen.
3:45 pm
jason: volatility fuels private equity in a way that is different than i think most other markets. a terrible time if you are a seller. but private equities have five terrific years of monetizing investments that we made in the previous five years. $900 billion returned to investors over the past 24 months. that part is good. >> right. now you have got a lot of money as an industry to put to work. wanted the longest standing names in private equity founded back in 1978. what are you specifically looking at? what industries are you looking at in the current market? always a time for different industries to come in and out of favor. in the current downdraft, i do not want to call it a recession or even a bear market. though it could well be. there are opportunities across a
3:46 pm
number of sectors. we historically have focused on a handful of industries and industrials which have been offered a bit now. you will see us active there. probably haves the biggest percentage correction but it is a big part of the economy and future. technology is enabling a lot going on in health care and we will likely see interest in things there. will useservices, i the word technology again because technology enabled business services are throwing here is aportunities look at some of the fed is all wind. and simmer resale is probably lagging for a bit. a surprise to some of the dividend of lower energy prices has not put enough money in consumer pockets and engendered the kind of confidence you might expect. most of my colleagues in the industry expect this to be a better year for buying and private equity even though we will see disruption.
3:47 pm
>> you have long specialized in going to a bigger company and taking out an unwanted unit. are the big companies willing to sell at this point? jason: i come back to how these things run in cycles. almost inevitably after companies make big acquisitions, there are smaller domestic chores that follow. m&a levels have been extraordinary. among corporate, strategic acquisitions over the last several years, there is a lag of -- a year or two. activists say, why is that there and wire you spread so far across. focused,l say a concentrated portfolio will deliver greater results. inevitably, ceo's's look at that portfolio and say it is time to sell things. i think your press in the united states and europe, those that have unrelated business units,
3:48 pm
are likely to be selling this year. vonnie: chairman and ceo of the private equity firms begin with luby's jason kelly. up, the close of trading. 15 minutes away or less. a trade on today's industrial jones average. 103 -- 173 points. ♪
3:49 pm
3:50 pm
vonnie: this is bloomberg markets here i am funny 20. software getting hit hard today. they are off the lows now. julie: but really bumping along the bottom. should mention volume is still lower than the 20 they average. that the trend we see in the last week or so on up his and down. major averages are now down on a day. oil has been a big part of the
3:51 pm
down trap today as well. we see it now off of 4.5%. it has been bouncing on the bottom. we have seen the correlation between stocks and oil. will be noying there production cut though that was not priced in the market. eliminating even the idea of helping to bring oil down. today, we the move have a couple of defense groups higher. energy is down the most, if i well theater couple of downgrades for stocks like u.s. steel, affecting that group as resultssome negative from hp and its dividend cut their spirit than familiar name. axa financials are down once again in the session that has been happening -- session. that has been happening frugally.
3:52 pm
jpmorgan is in the news today because of investor david we just heard the q&a from jamie dimon little while ago. one of the big headlines said sales and trading phil 20% this atr so far in the revenue the investment bank would be down 25%. on the putting pressure stock. he said that late in the day. possibleon said it is we will see improvement in march but it does not look like the improvement happened yet. the others that have been watching on the news came out during the recession is viacom. is viacom.he session the company has gotten interested a stake in paramount films. share spiked since then they have paired that. we still have a few missed ago p.
3:53 pm
we will see how we end up today. just below the six week highs. equities in europe and markets earlier, china central bank on it steadily weakened. what is next for the market? our guest is a large cap portfolio manager. tell us what is next. you see a tug-of-war. jamie dimon just mentioned a tug-of-war. when you stand? not been as positive as jenny would portray. slower growth internationally, a lack of fed stimulus or support for the market are we see slow growth for the united states are more than that, from bottom-up perspective, looking at companies, we see very little earnings growth. we are still cautious on the markets at this point. vonnie: some of the stocks in your fund belie that almost in consumer debt -- consumer discretionary. financials and some industrials
3:54 pm
as well. we do own stocks that have cyclical characteristics and we usually try to find the best management teams and companies we think can outperform the cycle. in late 2014, we positioned our portfolio on a more conservative stance. looking for revenue businesses, companies that we could find them at half pricing power, company returning capital to shareholders more. vonnie: could you give us some names? own crown castle, which checks all of those boxes, a strong reoccurring revenue model that allows an increased price every year. capital shareholders by that as a 4% dividend yield. a company like -- that checks all of the different boxes in the market right now. vonnie: are you ignoring all the volatile stocks in the energy market and concentrating on those you know -- jeff: energy in particular we continue to remain concerned.
3:55 pm
we will continue to be in a nervous supply situation for quite some time here we are avoiding energy stocks right now. is one ofnoticed it your major holdings in the fund. would you buy it at 48 all day long? jeff: we think amy is a great executive. we will bet on jpmorgan. obviously the u.s. is the core part of your portfolio. we are exposed internationally in terms of the s&p 500 earnings life. are you concerned for international growth and would it change your allocation in any way? we are concerned with international growth for some time now, particularly the strong dollar and how that affects exports. would be partial toward other companies that motivate domestic as opposed to those that sell internationally. earningshe next seasons, will we see an improved corporate earnings outlook?
3:56 pm
jeff: i hope so. in the second half, we will start to lapse some of the difficult const we will have. willie easier in the second happy at whether or not the fun a metal background will support continued sustained organic growth remains to be seen. we are betting it does not. very much thank you for your contribution today p 11 of the top-performing funds as well. -- today. one of the top-performing funds as well. that is it for bloomberg markets p are what did you miss and the market close is next. here are the major averages are less than four minutes. the dow is down. 100 76 points. the s&p 500 down 1.2%, 22 points. id 22, the nasdaq down 1.4%. ♪
3:57 pm
3:58 pm
3:59 pm
scarlet: we are moments away from the closing bell. i am scarlet fu. joe: i am joe weisenthal. "what'd you miss?" alix: i am alix steel.
4:00 pm
>> u.s. stocks closing lower. thatell on speculation opec members won't curb output. joe: the question is "what'd you miss?" >> a healthy housing market. how the recent stock selloff is affecting business. joe: goldman sachs sees again for the s&p 500. we ask whether we have seen the bottom in stocks. alix: the launch of a new the global lng market, and who should buy his former company. >> we begin with market minutes. s&p 500 retreating from a six-we tied. -- six-week type. - six-week

23 Views

info Stream Only

Uploaded by TV Archive on