Investors should stay in the market but in unpopular places, says MAI Capital's Chris Grisanti

Mike Santoli (Senior Markets Commentator) 00:00.110

joining us now on set to give his take and provide some value stock picks as chris christante he is chief market strategist at mai capital management chris

Christopher Grisanti (Chief Market Strategist) 00:09.150

good to see you you too

Mike Santoli (Senior Markets Commentator) 00:10.190

mike you know so there's been a glimmer of of life from value stocks they've actually outperformed this month actually quarter to date i think S and P value is winning on the other hand we've seen these head fakes before how are you just thinking about the overall market

Mike Santoli (Senior Markets Commentator) 00:26.230

behavior what it means for for the outlook

Christopher Grisanti (Chief Market Strategist) 00:28.750

like well you're absolutely right so a lot of people don't realize that only two of them AG seven have outperformed the market this year and even our our dog healthcare has been catching a bid in the fourth quarter best sector so so you're absolutely right but more broadly how

Christopher Grisanti (Chief Market Strategist) 00:43.790

should an investor navigate such an expensive market well we have a three way course to do that and and it's stay invested so don't try to time the market you got to be invested don't get scared out of it but stay unpopular and by that i mean go towards those places that aren't

Christopher Grisanti (Chief Market Strategist) 01:01.230

leading the market that aren't so expensive healthcare is my favorite spot right now not only is it cheap but it's also not economically sensitive so if the economy slows you can make money there and finally and this sounds weird stay behind and what i mean by that is don't try

Christopher Grisanti (Chief Market Strategist) 01:16.190

to catch a speculative market imagine you're running a marathon and you're staying in that pack that's behind that front case runner that's going way too fast so stay there and nobody remembers who's winning halfway through they remember who wins at the end and so that's how you

Christopher Grisanti (Chief Market Strategist) 01:30.320

stay is that is

Mike Santoli (Senior Markets Commentator) 01:31.160

that a formula for actually outperforming a very top heavy index or is it something that is just going to mitigate risk if in fact the overall market i think

Christopher Grisanti (Chief Market Strategist) 01:41.670

it's actually both mike because what happens as it did for example in the early two thousands very heavy index went down led by the same folks that brought it up yet if you had the unpopular group you were still not just outperforming but you had an absolute positive return in a

Christopher Grisanti (Chief Market Strategist) 01:57.310

negative market and that's how you win the marathon yeah i

Kelly Evans (Anchor) 02:00.190

don't even want to talk about your stock picks UPS i know kimberly clark yeah dell OK maybe but

Christopher Grisanti (Chief Market Strategist) 02:07.150

damn you only like dell 'cause it's technology OK right exactly right so i like two stocks that are down by almost fifty percent each and that's UPS and kimberly clark kimberly clark 's a great example so there's a sleepy toilet paper maker buying a sleepy tylenol maker but a PE

Christopher Grisanti (Chief Market Strategist) 02:24.990

of twelve when it's usually a PE of nineteen a safe dividend of five percent while you wait and believe me that will outperform a terrible market if things go south

Kelly Evans (Anchor) 02:33.510

but is that when you say you know you've seen the wall street strategist targets i don't know if you have your own but they're very bullish and and not in in aggressive way i mean even JP morgan 's global econ team is talking about this kind of profit upswing that they foresee

Kelly Evans (Anchor) 02:46.630

so profits go higher the forecasts go higher a lot of us obviously feel like it can't be that easy but don't you share that kind of

Christopher Grisanti (Chief Market Strategist) 02:54.750

i do and and and i'm not advocating a hundred percent into kimberly clark and UPS but what i am saying is if you're like most folks you've become tech heavy and so be careful about that especially with the more expensive stocks so diversify because things happen like in the

Christopher Grisanti (Chief Market Strategist) 03:10.990

first quarter of this year whereas mike pointed out are even happening now in the fourth quarter where value is coming to the fore there's more than one way to make money and some are less risky than others something

Mike Santoli (Senior Markets Commentator) 03:21.230

like UPS obviously used to actually trade at a premium to be this kind of you know this quality play now it has looked very cheap but you know pretty elevated dividend yield and things like that is that not an economically cyclical player you think it's kind of priced for it

Mike Santoli (Senior Markets Commentator) 03:36.670

doesn't matter

Christopher Grisanti (Chief Market Strategist) 03:37.870

you know no absolutely economically sensitive but i do think that there's so much risk has been taken out of stocks down sixty percent from its highs but but also the big thing happening there of course is they're moving away from amazon and and you know you're ripping the

Christopher Grisanti (Chief Market Strategist) 03:51.510

relationship with your biggest customer and and that's hurt for seven or eight quarters in a row now and that's finally moving on and so i think that's going to be a sleeper that can perform well even if the economy softens any

Kelly Evans (Anchor) 04:04.070

thoughts gold on the medals on you know what do you do with kind of materials and AG and all of these trades on the low on the weaker dollar that we've had this year

Christopher Grisanti (Chief Market Strategist) 04:12.350

sure i i think that trend actually continues as as you know kelly those trends don't last for a quarter even a year they last for half a decade things like that i do think we're in an era now of more inflation than there used to be i'm not going to pick a number but but i do

Christopher Grisanti (Chief Market Strategist) 04:27.510

think we're you know think about the seventies materials did well commodities did well and and i think that trend continues is not over with twenty twenty so when you