The corporate push for productivity amid potential wage hikes will drive B2B tech stocks, says equity strategist John Manley. Long term investors should buy integrated oil stocks, he adds.
Stop bouncing back Monday despite a drop in oil prices to an eleven year low. Let's see whether with John Manley chief equity strategist at Wells Fargo funds that net act are brought rally we're seeing today but. How to explain his actions as cars coming. Technical after the well let me get on Wall Street believes Santa Claus and helps you get towards the end of the year. I think what's happening is what it was at its its bounds but it's about for the right reasons and the decline which were bouncing back from a faction result of the game. Before Cheerios decisions so it all balances out of lockers tonne. It's. Sustainable it's been so while. I think it's sustainable I don't know who will be sustained but it certainly sustainable we still have ammunition we still don't have access valuations. The Fed may be raising rates very slowly tightening and I can see reasons why people couldn't. Move them market to over value position where right. No doubt liftoff out of the way it was the Fed is a market beholden to oil. The markets scared about oil it's it's something that's what. We worry about what they're going to be defaults it affects every sector of the world's economy. I think right now the focus on the negative impacts and ignoring some of the positive impacts. It's been slowed work itself to the consumer that's only natural people finding they have more money into the month. Are gonna spend it right away have to come to believe that oil prices will stay down for awhile. Pretty close that interest that's what Christmas does all right or when your last shows that it's time for long term investors. To look at oil stocks I'm specifically which sectors. Why I can't mention NATO will seek I think it's time for very long term investors to look at oil stocks and a great deal potentially some of the big. Multi national integrated oils they have downstream operations that is strong cash flow. They equality bill probably candidate and intend to and I don't see why they want and it's a great investment longer term meanwhile. Expiration is down in the US and around the world in a year or two for now that's gonna make a difference maybe not today. But I think it's good idea to put it away right now you want Exxon Mobil's now like 56. Hours upon them. Than they did there poster children what I think baby boomers have to buy down the road we need big high quality companies that pay dividends. You know it's very interesting and back in the 1980s that decade the old Exxon actually outperformed the S&P 500 pound return basis of the best decade for stocks were the worst decade for oil. That's because strong cash. Again don't draw specific inference from but I think that that type of stock into third what's that you've been bullish about tax cuts in his last Waltz specifically what's. What's your focus on business to business on tool to really understand the personal stuff. I use it but don't quite understand it I think that over the next year you will see upward pressure for wages which increases. I don't know that argument I don't think managers are navigated easily in the fight it. If they're forced they're going to have to offset some they want two things will cut profits they can possibly avoid. How do you offset it. You make your your people more productive I think that means more spanning business as. Well adjusted pretty well past few weeks but looking at points sixteen Wii's. I think it's up at the end of the year I think you've eaten having gone sideways it's a very rare thing to go sideways for years market to look like flipping a coin expect it to age. It it can happen but it's not very often. The market's waiting for a Q. I think the queue comes from earnings accelerating in the world economy's getting better if I'm wrong policy experts to change my mind right now that's right and when sixteen. I think. Are. Okay thanks John thanks. Are affected John Manley Wells Fargo funds management I'm Fred Katayama this is.