For those that may have missed our CNBC appearance this morning, here is the clip , which should be available for the next week or so. The interview went well and we actually succeeded in getting a laugh out of host Mark Haines, which may be an accomplishment in itself.
In the interview, we discussed why we liked early cyclical stocks in the current market environment, which includes financials and consumer discretionary names, as well as technology as an innovation play. We also mentioned several names for investors to consider, including Starwood Hotels (HOT), Cisco Systems (CSCO) and Harley Davidson (HOG).
While I’d love to take credit for the seventeen percent rally in Harley’s stock this afternoon, I honestly can’t lay claim to any special knowledge and certainly don’t have an ounce of influence among the fast trigger, trading crowd. Regardless, the sudden and explosive move in the name helps emphasize a point I was trying to make.
From current levels, some of the most suspect and wildly despised stocks may actually have the potential to enjoy the greatest gains. If you feel like saying “e gads” to describe a stock recommendation – a word we used in the interview – perhaps it’s a clue that you should take a closer, more serious look.
At some point, the economy will turn. And while few are buying higher end motorcycles today, this might then change. Everyone may clamor for stocks like Harley and Starwood, similar to the craze over gold and treasuries in recent months.
As Wayne Gretzky said, skate to where the puck will be, not to where it is right now.
If only it were so easy.