Jeff Tomasulo, CEO of Vespula Capital talks about the outlook for interest rates, his expectations for earnings, and where the best investment opportunities are right now. Bobbi Rebell reports.
Got off to a solid start on this Wednesday with gains in health care and energy stocks here at Bart. Get top affiliate CEO of that it capital great have you makes it that year there is a lot of focus on the and these is equity market seems to like what it's hearing. We know what their equity market really likes is decisiveness right what's the action that this is gonna take once you have the uncertainty out there the markets can be he'd like a free market. If you wanna say we have a free market right now but and I think that's one of the reasons we had. A lot of uncertainty going in the beginning of the year when we had to sell off once the Fay came out it was like all right we're raising interest rates are now. They've obviously changed their mind and they're saying hey we're gonna hold off the market can do what needs to do. As an action stocks. Yes we had a about the real well your thoughts on that factor at this time to get back at all the good thing we can say is that obviously I think we found right there's a lot of but the problem is we have a lot of volatility in the market. Yes indeed hours earlier this week oil was down almost 4% today up 5% on that number you know. What I do like I said this a couple times when I've been on the show before is there's a lot of opportunities when a market like oil. Gets glitzy story there's a lot of disruption there. We've had a huge up move but there's still opportunity one of my favorite picks is Halliburton. You know it still NA it's about 25% off its lows but there's still a handled it down move. A lot better than other firms. So that's one of my top picks and for other picture I look what I would put to stay away from Hyde get. Companies look for low debt companies and I think you'll do pretty well and I guess us on how are your thoughts on this possible disruption here just as with Baker Hughes came after me involved. With how that is how horrific it. They're gonna fight I think this deal as free person on that music came out today Albert was up almost two and a half percent so it's be it all the perception of the markets right now. You know we can't Heidi we we have no control what the government government you. So put on a long term look at the balance sheet that Halliburton it's just it's one of the companies that we'd like owned for the long ball. With or without absolute. We're starting to hear from companies regarding her at this to say what you expecting overall. All I. That's a good question I obviously gonna have a earns while it's going to be actually. First time since the financial crisis that we had four quarters in a row a slump in profits. However the problem with that is they have these analysts estimate to company's estimates that come out to keep lower and lower room. So you can see companies heated here coming out of the news eight companies that. But what number did he really be and that's the and that's one of the issues that were gone don't followers. So what are the trends you're seeing an architect if you're watching you've got your but to overseas situation yes we love emerging markets right now it's obviously again you know I guess you wanna see that I like to buck the trend a little days. Emerging markets have been destroyed you hear all the bad news coming out of Brazil they have almost impeachment. Proceedings going on over there but where there is controversy when there's companies getting destroyed there's opportunities that we like India. Is one it's it's helped the if you look at the I have and which is an ETF. For India it's up almost 20% off its bonds still a lot of opportunity there EWZ which is resilient he Kia. More opportunity there and obviously China another big emerging market play. You're started feeding it what we heard the beginning years' time is maybe not having a hard landing that everybody thought it was gone. Risk reward right absolutely. And our thanks to Jeff Thomas that's capital out there about this is Reuters.