Mar. 9 - PIMCO's Charles Lahr says the tremendous rally in risk assets has left only selective opportunities in stocks, but likes pharmaceuticals like Pfizer and specialty insurer Lancashire Holdings.
Equities have been on its -- in the first quarter but what's ahead for the rest of the year we're joined now by him coast shot lark he's portfolio manager of the -- fun. Very nice to talk to -- tonight. Have Woody's done ahead of themselves. You know I think when you look at equities Suarez the US really the whole global equity landscape for you that's a really strong. Macro data and the US has propelled the US equity market are really along the equity markets around the world -- global central banks engaged. The interesting thing is it's not just that it's just about every asset class -- risk guessed that this had a tremendous rallies over. That's pretty rare ones and so it's playing so it's not I would tend to say that if you can be looking at opportunities and equity asset class right now. You don't wanna be a little -- like. All right so give us some examples how are you being selected what are you looking out for our opportunity. What I know I think broadly speaking when you look at equities and I'll leave. Then one really interesting. Kind of structural aspect is that high quality companies. Dividend payers for instance even tonight for a rally like -- -- this. They've really underperformed at this point I tend to think sooner rather than later that's gonna reverse -- -- to find a lot of generous enough. Still. Even at elevated levels for the overall market need. The form except for instance. Vice would be one example when getting pretty healthy thing. Valuations in the low teens and -- over and earnings. You know really strong. Future development of about finances that's one area it's got me down. It's it's got me up and had quite a comeback as well. Like you know again that's kind of the back -- in the market environment I would tend to look for something a little bit -- Idiosyncratic again an example there might mean a company like -- edition which is a special teams. We're going to the failure over tweets here last five years. 20% return on equity trading at about one it's. Look so that's a really strong. Still it's quite an insurer -- say it's intrinsic value. I can't not ask you about technology -- -- are there any tech stocks that look. Nicely undervalued interview. Despite. The rally that Microsoft -- bad still that that's a stock that I just don't see how you're gonna lose in a name like that. What do you think is the biggest risk to equities this year. Well when you look at the overall environment there there are a number of risks and recently at a rally so strongly so far this year inequities spin. I think for a number of reasons precisely. Want. Has been what's happening in Europe with the ECB in the introduction to help TRO essentially. Emergency funding facility that that's what kind of chopped the tail left tail off a bank valuations they were looking. To be quite binary -- so a lot of people are concerned about. Just the very existence of the European banking sector not so long ago it back to. And December. And look ahead. -- euros works for now but there are a number of risks that still percolate throughout the rest here and again tonight in Europe. The sovereign debt crisis in our. It was far from home so -- substantial solvency issue. The number of countries in the periphery. And if that rears its head again and more meaningful fashion. I think we're in the situation we -- will be more like consumers off. Chuck -- and got things very much for your time.