WealthWise Financial Services' Loreen Gilbert tells Reuters' Fred Katayama investors should consider buying stocks of traditional retailers that are strong in e-commerce ahead of the holiday season.
FRED KATAYAMA: Stocks rising Friday in what has been a choppy week for the markets, today with weakness in tech. Let's find out how to play the markets as we approach the holiday shopping season. We're joined by Loreen Gilbert of WealthWise Financial in Irvine, California.
Good afternoon to you, Loreen.
LOREEN GILBERT: Good afternoon, Fred.
FRED KATAYAMA: And Loreen, the Dow cyclical stocks, small-cap stocks had a banner first two days of the week, then they suffered Wednesday, Thursday. And now all stocks are up across the board today, still, though, with tech taking a backseat. You seem to be convinced that this time, this rotation towards value, that it's here to stay. What do you see that makes you think that we're not-- this is not going to be a false dawn of a rotation?
LOREEN GILBERT: Right. Well, you know, we've been waiting for this for a while. But when we look at valuations of some of these companies, when we look at the disparity between value and growth that is just not sustainable forever, and so we do think that we've begun this rotation towards value. And I think we're going to start seeing that in stock prices. And I also think that with the Dow, you know, hopefully we'll hit 30,000 sooner than later and that will stick as well.
FRED KATAYAMA: Do you see this lasting, what, months? Is this going to be years? I mean, that other, you know, big growth rally has been going on for years. What about value?
LOREEN GILBERT: Well, you know, we still have an environment that could be attractive for certain growth stocks. We have low interest rates, and that's going to continue to drive that growth story. But I think we're going to start seeing more opportunities and for investors to look for opportunities in the value area. I will say with these new IPOs that are coming out, there could be strong interest for those stocks as well.
FRED KATAYAMA: In terms of opportunities, Loreen, where do you see it in the value sector right now, cyclical?
LOREEN GILBERT: Yeah. Yeah, we see some with industrials, definitely. Looking at a potential infrastructure package that could help industrial stocks, I think that is certainly a good play to look at.
FRED KATAYAMA: Any particular stocks that you like?
LOREEN GILBERT: You know, there are different ways to play in the industrials, for sure. But even looking at some of those companies like today, we're seeing even a recovery in companies like Boeing. We're seeing those rally today.
FRED KATAYAMA: And then you're saying you still believe there is still room for growth stocks as well. So are you saying play a barbell approach? And if so, what areas within growth? Or would you take profit and then rebalance it over into cyclicals?
LOREEN GILBERT: Yeah, I think there are still some opportunities. I think as we hit the holiday season that's coming up, looking for companies, not necessarily just Amazon, but those other companies that are e-commerce space, companies like Best Buy, companies like Walmart, companies that also have strong e-commerce, even Nordstroms and Target. I mean, there are a number-- even Etsy. So I would say there are still some opportunities there. And looking at, I think, we're going to see this holiday season being somewhat stronger than some people are thinking.
FRED KATAYAMA: OK, lastly then on this value stock theme, or this rotation to cyclicals, there's still that thing about COVID out there that keeps growing and growing. Are we to look at the markets, then, 12 months out, as opposed to looking at the markets over the next few weeks, as cases are expected to escalate?
LOREEN GILBERT: Yeah, I think that we're going to continue to see those cases escalating. But I think the market is on pretty solid ground looking forward because the market is forward-looking. We got great news from Pfizer. I think we're going to see other big news from Moderna. And not necessarily to be looking at those as investments, because we don't know how profitable those are really going to be, but more from the idea that, you know, at some point, we'll be able to stay open.
FRED KATAYAMA: All right. Thanks a lot. So take a look at industrials, and also on the growth side, e-commerce stocks.
LOREEN GILBERT: Yes. Thank you.
FRED KATAYAMA: Appreciate it, Loreen. Our Thanks to Loreen Gilbert of WealthWise Financial in Irvine. I'm Fred Katayama in New York. Have a great weekend. This is Reuters.