Gerber Kawasaki CEO Ross Gerber talks about the energy sector, earnings, and what needs to happen for the markets to hit new highs. Bobbi Rebell reports.
A rebound in well helping to lift stocks on this Wednesday let's talk markets for the roster ever CEO of Gerber palace back he joins us from our Los Angeles you're great to have you. Thank you very silly cedar covering it well you'll like the energy sector what's going on there. Well lots going on there because what we're seeing is this rebalancing now between supply and demand even though supplies still outstripping demand. We see sort of a light at the end of the tunnel because we're seeing production come off in the US but where there are opportunities are in the strongest players and and downstream in midstream looks very attractive right now. Because those assets are urges crucial in the infrastructure while here in the United States that we see a lot of opportunity in Wales and also and we'll chat right now. And better than expected stocks trading near record levels how sustainable is this rally. Will the rally is only sustainable as earnings are growing so. We have legs under this rally right now because a lot of the years that everybody at the beginning of the year which was China and oil have basically subsided and we look around and we say. Well it's it's not so bad out there you know. And and so the markets moved back to where it was but what to move higher we need to have earnings and higher and we have some hope without with a weaker dollar and what we what how much easier comparisons in the second year so did you see earnings growth beginning in the next couple quarters and and that should support the market prices moving higher so. You know it's it's interesting environment it's just in time for investors. Optimistic at a red flag here kind of bracing for now. Yeah the the election in the election got a little more clear last night. It's going to be Hillary Clinton vs Donald Trump. And this election is huge for America and its future I have my opinions of course I think Hillary Clinton is best for this country. An and I think that will also determine how the market needs I think continuing on the same path but a better path I think under Hillary will be bullish for stocks. What are your favorite stock these days they'll aircraft that's ideas beyond energy like. Yeah. Well you know this pullback in Netflix is interesting to me a lot of people are worried that they tamp down expectations so much we'd like that they tamp down expectations. But we know that nobody watches television anymore everybody watch Netflix. Netflix will grow in countries all over the world and we'll take a little bit of time but if you watch them they'll continue to grow and be successful but we like the military's stocks right now like Northrop. They actually who are benefiting greatly by unfortunately all the conflict in the world and and a lot of the Donald on a dogma has pumped up stocks as well. As new orders and an end sequestering so that these areas the large cap value has been outperforming I think that's what matters most opportune. Are we love you and every day these days noting a new benchmark that the markets have hit. Do you think we're gonna hit actual records in the near term or are we gonna kind of hover in east near. Close call level. Well I think second computers control a lot of baskets today and if asked if he continues to stay above 2100 computer buying is gonna come in. Because that's just basically the trends are shifting from barest of polish so than the computers shift and that should push the market up to new highs where we go from there is gonna a lot be determined by of course earnings in the overall economy. But I do think we're gonna see higher as stock prices in the short term. Our era thinking semi. Thank you thank you roster of Herbert Allen factly popular Elvis is Reuters.