June 05 - Edward Jones Chief Investment Strategist Kate Warne says the skepticism on stocks means nobody has gotten too euphoric, and stocks are in for a strong second half of the year. Bobbi Rebell reports.
Stocks continue to trade at record high six of the last eight sessions if India 500. Has closed at a record highs let's talk to Edward Jones chief investment strategist. He Warren thanks for joining us thank you glad to be here are three had a great first half of the year has the second half we think the second half. Also looks very -- effect it may look a bit better because we don't expect to repeat of the harsh winter weather that we saw on the first quarter. Patently did do you think some of the activity in the first part of the year we think that it's likely to be better in the second half as earnings in the economy continue to hire. That's not great but there's a lot of skeptics out say the market as well it is just about to fall what's your take there. Well week and it always be prepared for pullbacks but valuations are still reason with the S&P trading at a little about fifteen times earnings very much in line with historical averages. And we think earnings and the economy element of higher. That drags stocks higher but in addition we think sentiment is actually improving a little. The skepticism everybody feels is positive because it means that nobody's got too excited to of euphoric at a time. That's set volume -- it very well how much should we be worried about that. Actually I don't think -- -- from investors to worry we've seen low volatility and had to return to normal volatility really should be something everybody's expecting. Low volatility goes along with low volumes because nobody needs to make it change their portfolios. We think that's actually good news for individual investors. We're beginning to feel that we're comfortable but probably don't need to make changes unless they are sitting on the sidelines. And speaking -- sidelines what it take to get that uneasiness on the back to this market. I think it's coming in slowly but I think we'll take -- continuation. Good news that makes investors feel more comfortable and makes -- more confident. That this isn't as you were saying it's based on nothing. It isn't it's based on stronger grip stronger earnings but people are still skeptical and I think it just takes a loved it and feel more comfortable so what kind of -- will lead the market at this -- -- a trend towards stocks that have less volatility and more stability to. I think -- will be large companies large cap stocks they do you have less volatility in the islands that are positioned to benefit not just from stronger economic. Connection for stronger global growth we're finally seeing synchronized global rebound. As the rest of the world begins to catch up with the US and -- of companies actually turned the global operations. They'll likely lead the market higher at this stage as a look at the economy we're just we're just heading into the the big jobs report. What do you think is is the impact there in terms of Allen seeing this sort of economic recovery and the stock market had a -- Well right now we're finally seeing jobs created it more than 200000. Per month. That's something that hasn't happened for a while. It's still too slow but it's better than us we think we'll keep seeing the job market improved that very slowly it's slow grind that's helping the market with a slow grind. And -- supports consumer confidence as well as consumers planning to still more than two thirds of the economy and it contributes of course to rising stocks -- so what's your advice to investors at this point. It's nice -- is to stay -- if you're on the sidelines now as a good time to get invested. But what you wanna be sure is the -- -- respect for -- not to stocks and also bonds you're prepared in case the volatility that we've seen in the past does return. But we do think stocks overall positive and that's the place today as the market continues to grind -- and sometimes thank you. I thank you and Richard -- -- about -- about this is writers.