video Video

Google, Facebook good stocks in political season - Gerber

Friday, January 29, 2016 - 03:34

Election campaigning means big ad spending, and that bodes well for Facebook and Google, says Ross Gerber of Gerber Kawasaki.

▲ Hide Transcript

▶ View Transcript

Stocks rising on the last trading day of what's been a miserable January. When it's not look at the markets as Ross wherever he CEO Edgar hurt. Welcome back Roth now the fourth quarter GDP or turn it be weekend's expected what impact is that having on stocks today. Well actually cost the pot that response because the Fed has basically out of the game now it looks like it's going to be a one and done. Rate hike cycle but the bad right now because all the pressure on outward and and the global. Economics. Behind United States is very very war so even the US is still have a decent economy there's so much pressure now. That that's actually a positive thing as rates across the world are not going up. You said one and done you don't think they're going to be rate hikes this year you know I think they're done I I think if anything they might take away the rate hike they've already done. If any must have been even tougher now the Bank of Japan. Shot in the market today with that move to cut rate below zero. Exactly and and ended in the dollar has been a big issue for corporate profits this quarter we've seen it with apple and a lot of the company's borrowing. We we were honest people. More stable currencies and the dollar is constantly rising against everybody else with everybody else in the world keeping rates in April we have to eat two or else we're just it's self defeating cycle for the US economy. Does things so if you're correct if it's one and done that we don't have to worry about the dollar going any higher. Or well what's a little have a busy honoring. Yeah we still have a stronger economy than the rest of the wealth of the dollar will have strength against other currencies but we just don't wanna exacerbate that with higher rates to stay away from stocks and US exporters that. Well I think those are going to be the tough for stocks because we're really seeing weakness in the oil commodities countries of the world and and those world where a lot of experience it was happening for the bulls international companies so we do like the more domestic focused companies we saw. Under armour reporting great number we like all to us alive and it's a domestic company. So I think Erica that fare a little bit better than the global. Sort of macro companies out there would that mean to you get smaller stocks is one because they're exposed overseas. And and many of them are very cheap as well because the Russell has really gone to a bear market so there are some smaller we like some of the small caps right now actually. Any names. Got taser for examples of stock rebound we Brody from fifteen to 35 back to fifteen now again. And it's a great company focused on dealing with the issues of police abuse. And they make the body cameras for N and the technology around. Advancing nonlethal police equipment and I think it's an important trend in this country and think it's important company. Ross look at ad tech we got strong earnings from FaceBook and Microsoft but a disappointment from apple and Amazon. I have the time for a long term investors that I'd come to pick up some of these things it. Absolutely these tech companies are making money and when you say disappointing earnings and Amazon coupled short career earnings just the expectations are so high. But yeah across the board we're seeing great earnings and technology I think it's the best area in the stock market being in faster and I think these companies like FaceBook Avalon insulation and it's a political cycle right now sort of deal out of spending so I think it's gonna bode very well for the FaceBook Google these type of companies aren't evil things thanks flat out refuse. My question are backdrop Gerber or Gerber Kawasaki I'm Fred contact Alan this is wrong.