>> HAPPY NEW YEAR TO YOU.
CHERYL: WE HAVE 2 1/2 MINUTES.
THIS IS IT UNTIL THE END OF THE
TRADING YEAR, 2018 END OF
TRADING YEAR.
BRIAN KELLEY.
WE'LL TALK ABOUT NEXT YEAR.
DO YOU THINK THE MARKETS CAN
COME BACK NEXT YEAR?
>> I THINK WE'RE VERY GOOD
POSITION.
LOOK AT 2018 DID FOR US.
22 TIMES EARNINGS.
S&P 500 OR THE DOW HAD A YEAR OF
OVER 30% EARNINGS GROWTH.
MARKETS ARE DOWN 7% OR SO ON A
PRICE POINT BASIS SETS UP 2019,
14 TIMES NUMBERS.
THAT IS ATTRACTIVE PLACE TO BE.
THERE ARE A LOT OF RISKS OUT
THERE, UNKNOWN WITH TRADE WARS
AND RATE INCREASES BUT WE STILL
THINK THERE IS VERY GOOD
ECONOMIC BACKDROP.
AT LONG AS PEOPLE ARE EMPLOYED.
THEY'RE SEEING WAGE GROWTH.
THEY'RE INVESTING.
THEY'RE SPENDING WE THINK THAT
SHOULD SHOW UP IN STOCKS GOING
FORWARD.
CHERYL: REALLY QUICK, I WANT TO
TALK ABOUT FINANCIALS WITH YOU
BEFORE WE GO.
FINANCIAL SECTOR, GOLDMAN SACHS,
WORST PERFORMER ON THE DOW IN
2018.
FINANCIAL SECTOR ONE OF THE
WORST PERFORMERS IN THE S&P.
SOMETIMES THAT IS THE BUYING
OPPORTUNITY WE'RE LOOKING FOR.
WHAT DO YOU SAY?
>> I WOULD SAY SO.
THAT IS TRUE.
YOU CAN BUY A BASKET OF
CITIGROUP, JPMORGAN,
BANK OF AMERICA, ALL BELOW,
BETWEEN SEVEN AND 10 TIMES
EARNINGS.
WE HAVEN'T SEEN THESE TYPE OF
VALUATIONS FOR QUITE SOME TIME.
RIGHT NOW THEY'RE STABLE.
WE WISH THERE WAS LOAN GROWTH
SHOWING UP.
UNTIL WE SEE ACTUAL ASSET
QUALITY DETERIORATION, WHICH
WE'VE SEEN NONE OF, WE THINK
THESE ARE NICE ENTRY POINTS FOR
LONG TERM INVESTORS.
CHERYL: REAL QUICK, ENERGY
SECTOR THAT WAS THE
WORST-PERFORMING SECTOR OF THE
S&P, WORST-PERFORMING SECTOR.
YOU LIKE ENERGY?
>> PARTICULARLY WITHIN ENERGY,
THERE ARE MORE UTILITIES.
THERE ARE NATURAL GAS UTILITIES
HAVE DONE VERY WELL OVER THE
LAST FEW YEARS.
BELIEVE IT OR NOT THEY'RE UP 53%
OVER THE LAST THREE YEARS,
DOUBLE THAT OF THE S&P 500.
THESE ARE COMPANIES THAT ARE
BENEFITING FROM THE GROWING
IMPORTANCE OF NATURAL GAS IN THE
UNITED STATES.
WE'RE AT RECORD LEVELS OF
PRODUCTION.
CHERYL: RIGHT.