Full Video Transcript Below:
CAROLINE WOODS: September is historically the worst month for stocks. So talk to me about how you’re positioning amid what could be seasonal weakness?
MICHELE SCHNEIDER: Well, I’m going to areas that I think have a lot of potential regardless. And of course, energy has been a big one for us, and not necessarily crude oil. I would stay away from the oil market because there’s so much conflicting news about supply and demand. But natural gas looks like it’s bottomed out. Obviously, uranium has been on a tear. If you’re looking at some of the major oil companies, they’ve been doing better. We also like to expand outside of the energy space. I have been really big into what I call the vanity trade, which is really basically the diet drug companies and then the types of areas that consumers who are off are going to for the first time. Like, for example, looking at stocks like Nu Skin, which has rallied, ELF, which is doing great, Ulta, which had incredible earnings, also doing great. You know, where would people go if they’re now thinner for the first time? And there’s a bunch of places. Match.com looks good. Stitch Fix, which is an old dead company, is starting to perk up a little bit here. So I’m looking at that. Obviously, if we see a major downturn, everything will downturn. But I would be a buyer on the dips, particularly in those areas.
CAROLINE WOODS: So the bull market is still intact?
MICHELE SCHNEIDER: The bull market is still intact. I don’t see any problems. Maybe if we start to falter in some of the weaker areas. Semiconductors was one, but we can see that’s reversed today. Transportation was another, but that’s still holding on to major support. I would need to see what I call the weak links turn into something more like anchors, if you will — something that really weighs the market down. And of course, in terms of that, if you look at the out influencers of the market, we would have to continue to watch the yields, the dollar, the gold, the silver. What are they really saying? And right now, nobody seems to really care very much about all of that.
