Haefele: Emerging markets are attractive because they trade at a significant discount to the S&P 500

UBS. MARK, GREAT TO SEE YOU. >> THANK YOU >> AGREE WITH JANET YELLEN ODDS OF U.S. RECESSION ARE LOWER. HOW DOES THAT SHAPE YOUR VIEW OF THE SECOND HALF OF THE YEAR FOR MARKETS? >> WELL, THERE'S NO QUESTION THAT THE CONSUMER HAS REMAINED MUCH STRONGER THAN MANY PEOPLE ANTICIPATED OVER THE COURSE OF THE YEAR THAT WILL PERSIST INTO THE SECOND HALF. THEY HAVE DONE SO THROUGH A VARIETY OF THINGS. YOU KNOW, WORK FROM HOME HAS PUT EXTRA CASH IN PEOPLE'S POCKETS THAT THEY ARE SPENDING THEY HAVE GONE OUT ON CREDIT CARDS. WE ARE SEEING PERSONAL BANKRUPTCIES AND DLE DELINQUENCS RISING PLAY FOR A 5% UPSIDE IN THE STOCK OR BOND SIDE WE TILT TO THE BOND SIDE AS WE SEE TODAYIN EUROPE, YOU SEE SURPRISES IN INFLATION AND CENTRAL BANK RESPONSE AND NOT THAT STRONG ECONOMIC GROWTH. >> I THINK A LOT OF PEOPLE WERE SURPRISED BY OTHER ACTION IN THE MARKET THIS YEAR THE A.I. TRADE WE HERE AT CNBC, MAGNIFICENT SEVEN. YOU CALL IT THE SURGING SEVEN. A 5% POSSIBLE UPSIDE IN THE MARKET ARE THESE STOCKS GOING TO CONTINUE THE MARKET? DO YOU BELIEVE THIS IS A BUBBLE? A FOMO TRADE OR SOMETHING ELSE MORE SUBSTANTIAL >> IT CAN BE ALL OF THOSE THINGS CERTAINLY -- >> IT CAN'T BE ALL OF THEM >> -- I THINK THAT WE ARE NOT GOING TO TO PLAY FOR THE UPSIDE. THE VALUATIONS THAT NVIDIA TRADES NOW FOR EXAMPLE IS STRETCHED. ALL OF THE GAMES, 80% OF THE GAMES IN THE S&P 500 HAVE COME FROM THOSE STOCKS OF WE WOULD DIVERSIFY AWAY FROM THAT EVEN THE OTHER STOCKS IN THE S&P 500 ARE TRADING AT 15 TIMES VALUATION. WE WOULD GO FURTHER AND LOOK AT EMERGING MARKETS WHICH TRADE AT SUBSTANTIAL DISCOUNT. >> NVIDIA IS TRADING AT 56 TEAMS FORWARD EARNINGS I WANT TO GET BACK TO THE SURGING SEVEN. IS THERE ONE WITH THE BEST PICK FOR THE YEAR >> WE HAVE OVER 3 TRILLION IN ASSET ASSETS I DON'T SPEND A LOT OF TIME ON STOCKS THAT IS WHY YOU SEE A SHIFT IN ALLOCATIONS IN THE EMERGING MARKET STOCKS FOR BETTER VALUATIONS. >> WE TALK EMERGING MARKET STOCKS WE ARE SEEING CHINESE EQUITIES SURGE DESPITE THE FACT THAT THE SLOWDOWN IS GOING SLOWER THAN MANY PEOPLE EXPECT >> WELL W, START WITH THE BROAD INDEX AND FROM THERE, I THINK CHINA IS AN AREA WE ARE VERY INTERESTED MANY OF OUR U.S. CLIENTS HAVE REALLY STOPPED ALLOCATING TO CHINA. THAT IS NOT NECESSARILY THE CASE FOR THE WORLD. WE ARE LOOKING FOR MORE OF A COMMITMENT FROM THE CHINESE GOVERNMENT TO NOT MASSIVELY RAMP UP STIMULUS, BUT DO MORE BECAUSE THEY RECOGNIZE THAT THEY NEED TO SEE ECONOMIC GROWTH IN THE SECOND HALF OF THE YEAR. WE SEE AN OPPORTUNITY THERE BECAUSE THE VALUATIONS ARE VERY ATTRACTIVE >> IF WE SEE MORE CHINESE STIMULUS, YOU ARE SAYING THAT IS THE TIME TO START BUYING AND GOING INTO CHINESE EQUITIES? >> I THINK IT IS ALREADY STARTED TO A

Channel: CNBC Television

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Keywords: Worldwide Exchange, CNBC, business news, finance stock, stock market, news channel, news station, breaking news, us news, world news, cable, cable news, finance news, money, money tips, financial news, stock market news, stocks

Id: ySFdeXnv_M4

Length: 3min 37sec (217 seconds)

Published: Fri Jun 23 2023