CHARLES:
THE MARKET.
CONSUMER DISCRETIONARY AND
FINANCIAL NAMES WHICH, BY THE
WAY, COULD GET AN EXTRA BOOST
HIS STAKE IN GOLDMAN SACHS BY
21%.
NOW, I THINK THE MARKET IS SET
UP FOR BALANCED PORTFOLIOS
REALLY NICELY.
ARE GOING PARABOLIC.
BUT DON'T FORGET ABOUT VALUE.
I KNOW THERE'S A LOT OF BORING
NAMES, BUT CONSIDER THE
RISK/REWARD LEVELS ARE REALLY
VERY FAVORABLE.
ON THAT NOTE, I LIKE THE
INDUSTRIAL NAMES, AND AT SOME
POINT MATERIAL NAMES ARE GOING
TO GAIN SOME TRACTION, HAVE
EXPOSURE TOWARD PACKAGING.
WANT TO BRING IN COMMERCE STREAK
DORY, I READ SOMEWHERE THAT YOU
WERE COMING INTO THE SUMMER YOU
WERE A LITTLE -- I WOULDN'T SAY
BEARISH, BUT YOU WERE WORRIED
ABOUT THE MARKET.
HOW ARE YOU FEELING RIGHT NOW
AFTER THIS EARNINGS SEASON?
>> WELL, I'M ALWAYS, I NEVER GET
FULL-BLOWN OPTIMISTIC, SO WE'LL
CALL IT GUARDEDLY OPTIMISTIC.
BUT THE MARKETS TRADE SIDEWAYS
SO IT'S A GREAT -- AS YOU WERE
THERE'S SOME GREAT NAMES IN
LARGE CAPS AND MID CAPS.
CHARLES: WHAT ABOUT SOME OF
THESE NAMES THAT KEEP AMAZON UP
ALMOST EVERY DAY, INVIDIA WAS UP
BIG, THEN A REPORT THIS WEEK IF
THEY GET A BIG NUMBER, THAT
STOCK IS GOING TO GO
SIGNIFICANTLY HIGHER.
BILLIONS AND BILLIONS OF DOLLARS
CHASING THE SAME NAMES, THAT
MAKES SOME PEOPLE WORRIED.
BUT IS THERE A PLACE IN YOUR
PORTFOLIO FOR SOME OF OUR
VIEWERS TO ALSO BE THERE?
>> ABSOLUTELY.
AND I THINK IF YOU PICK YOUR
SPOTS IN THE FANG STOCKS, YOU
KNOW, GET RID OF NETFLIX, PICK
ONES THAT ARE MAKING GOOD MONEY
AND HAVE SOME MARGIN -- APPLE'S
DOING VERY WELL, GOOGLE'S DOING
WELL, AMAZON'S DOING WELL,
UNDERWEIGHT THE OTHER ONES.
BUT LOOK AT RETAIL THE.
RETAIL WAS UP ACROSS THE BOARD.
MACY'S IS UP 60% THIS YEAR, AND
IS YOU STILL GET ABOVE A 4%
YIELD, A 4.5% YIELD.
THE COMPARISON I LIKE TO MAKE
IS, YOU KNOW, TESLA'S BEEN THE
SEXY STOCK ON THE MARKET, YET IT
DOESN'T MAKE MONEY, ISN'T MAKING
HIS PRODUCTION GOAL, AND WE ALL
KNOW THE PROBLEMS WITH ELON
JUST MADE TEN MILLION MUSTANGS
SINCE 1954 -- OR 1964.
AND IF YOU LOOK AT THAT, THEY
NOT ONLY KNOW HOW TO MAKE A CAR,
BUT THEY KNOW HOW TO MASS
PRODUCE THEM.
CHARLES: LET ME BRING ERIN INTO
THE CONVERSATION, BUT I ARE ASK
YOU ABOUT PEAK AUTO, THE DEATH
OF THE AMERICAN AUTOMOBILE
MARKET AND, AGAIN, FORD COULD BE
PROBLEM.
ERIN, YOU ALSO LIKE THE VALUE
PLAY HERE, COCA-COLA.
>> YEAH.
COCA-COLA JUST BOUGHT BODY
ARMOR, IT'S A SPORTS DRINK
THAT'S MAINLY STARTED AND OWNED
BY KOBE BRYANT.
IT'S MEANT TO COMPETE WITH
PEPSI'S GATORADE, AND THAT'S ONE
OF THE AREAS THEY HAVEN'T BEEN
ABLE TO COMPETE.
SO I THINK ON THIS NEWS --
CHARLES: WHAT ABOUT THE
CARBONATED BEVERAGE DECLINE?
TEN YEARS AGO DIET SODAS WERE
PICKING UP THE SLACK, NOW PEOPLE
HAVE WRITTEN THEM OFF.
I THINK THEY'VE GOT TO MAKE AN
ACT BY IS DECISION IN WATER.
>> THEY DO HAVE THEIR OWN WATERS
FROM SODA, AND THESE TYPES OF
ACQUISITION, THEY'RE CASH-RICH,
THEY PAY THEIR DIVIDENDS, AND
THIS IS EXACTLY THE TYPE OF
GOOD MONEYMAKER.
CHARLES: YOU ONLY MAKE CHANGES
PERIODICALLY.
SOMEONE OUT THERE WATCHING THIS
MARKET, IF WE BREAK OUT TO NEW
ALL-TIME HIGHS IN THE NEXT
COUPLE OF WEEKS, WOULD IT BE
OKAY FOR SOMEONE TO CHASE SOME
OF THESE NAMES THAT ARE ALREADY
UP BIG?
>> WE STILL LIKE AMAZON.
WE STILL THINK THERE'S ROOM TO
RUN.
YOU KNOW, IT'S STILL ONE OF THE
MOST PROFITABLE CONSUMER
DISCRETIONARY NAMES OUT THERE,
SO WE DON'T HAVE A PROBLEM WITH,
CHARLES: DOERRLY, I'VE -- DORY,
I'VE PERSONALLY BEEN KILLING IT
ON THE BRICK AND MORTAR
RETAILERRINGS.
I TOLD PEOPLE TO BUY THEM WHEN
NOBODY LIKED THEM.
WITH FORD, FOR INSTANCE, HOW
VALUE THAT YOU TALK ABOUT AS
THEY'RE WATCHING PERHAPS AN
INVIDIA GO UP 40 POINTS ON ITS
EARNINGS REPORT?
>> I CAN'T HELP BUT THINK THAT
FORD IS TIED TO TESLA, BECAUSE
ALL FORD DOES IS MAKE MONEY, AND
THEY'RE DOING GREAT, AND THEY'VE
GOT A NICE YIELD.
SO AT SOME POINT, IT'LL COME
BACK ESPECIALLY IF TESLA
CONTINUES TO EXPERIENCE THE WOES
THAT HE'S HAD.
BUT THERE ARE OTHER
THAT ALL YEAR ON YOUR SHOW AS
WELL.
BANK OF AMERICA STILL LOOKS
GREAT.
IT'S UNDER 11 FORWARD PE, IT'S
GOT A NICE 2% YIELD, THEY'VE GOT