Stock Talk - David Falkof, Morningstar

ED five allows foreigners to five basically citizenship package. Our quota in our gold. Is 101000. Of these per year per year -- if they were to meet their 101000. Per year visa quota it would contribute more than four point four billion dollars to our gross domestic product. And it would create or preserve nearly 75000. Jobs in it that's of the. It is it is lady just hit it doesn't sound like it's been a successful or is not as successful as they want in is that because it's just not out there people don't know about it. -- they don't know about it but also the United States is not as attractive place to come to as a may have been and -- well if you're considering it is let's say you live in China. Rate is 7% of the participants programs are Chinese. So if you live in China where would you rather go the United States or Australia. Australians a lot closer right knee and go home -- and see your family. Your family can come and -- use -- Internet and whether -- -- that now is Australia doing this the same actively. Is any any other country is just to Canada -- also doing figures and. Nobody wants pretty darn it well they wanted to become hockey -- It's not Chinese not keep trying -- are trying to bring in their develop their hockey programs actually if there is a large Asian population opt in and Vancouver now that I now that you said it and it's growing massively in Vancouver has a very large Asian population as -- -- So it was huge you've got two cities in candidate competing for the same thing so they're trying to get this up to 101000. Visas granted on an annual basis. -- -- I think it's I think it's terrific I'm the only let those people in this country if -- only good people that they can afford to pay either half mill or a million dollars with something to contribute. Other than that. Simulator with yet. All right let's go to our guest David stop off as an analyst at Morningstar David welcome to the show are you -- I'm doing well thanks for having me. You know I always look forward to Mondays because. We spend a lot of this time talking about individual stocks here not nearly enough time talking about mutual funds and you've identified. Three mutual funds that you think our listeners should perhaps learn a little bit more about the first one is -- Weis is that the the pronounce predict the pronunciation on it. Yeah that's right out to right the it's like the course stocks on -- in the mid cap blend terabyte. Two on asteroids. Imagine under he's been my paper over couple decades. You know look at growth stocks could -- -- that small cap a much at. Does that sort of build a spoiled what he is is the best opportunities for. Growth it is sort of got to grow so but he. He looks for companies that are out of paper -- story still looking at valuation and is also looking at companies. That have enough cash. Cash flowed to generate earnings in any sort of a market environments so it's tend to be very defensive if you get -- 2008 and it. Others have bear market. Does bailout and to -- -- the topic category I and that then in and grow your markets it sometimes and the lag. But yet he is looking for a long term. Could risk adjuster return residents. In a couple of years of really great return then. You know a bad thing amber. Can you give us an idea as to me what some of the top holdings in this mutual fund might -- Sure. You know they tend to. It's oh look first for out of favored -- so. And yet. -- perhaps say a company like Netflix lululemon somebody a bad Amazon maybe. Bush even in my face so it completely HTTP you know through a bit stick right now. These guys. -- Morgan and it's not the name on the Viacom. You know and have -- danger today -- a craft spirit is there's some of them are there are -- announced some of them are smaller companies that. You know in this series. He conveyed a lot people buy it pays China finance their out of paper and have and strong management. The potential that. -- it a leading company in the future. And -- how's the fund done so far this year or five months into the year you may not have main numbers yet but. The game did first quarter first third of the year candidate do. This -- was -- per year to date. The -- -- through Friday. The spot is up 3% -- -- trailing yes department by three percentage point. Which is Saturday Harry -- think about it in the years you know strong relative but not gonna do is -- a big guy by. The past couple months the united. -- it's done better than that Obama is so. So it performed as expected again. Kate and David with your next -- you're you're next mutual fund pick which one you like. So this exploited it's the standard energy on and what I I think it's you know we tendon. They promote sector fumble what I think is -- that it instinct right now. In the energy sector is that. If you look at. You know release returns but it answers to this -- is down sixteen point 9% to ten years. -- the SP 500 is up five point 9%. Associated soda you know in. -- is the disconnect like that got. Yesterday began in Watsco closely it and -- -- respond in a dispute -- investors look at the report on -- they don't have. It is -- any energy exposure very little. And might be incident you know you don't you know spent a lot of -- fun bit of it might -- -- if you don't have any unity is adamant in its sting. Waited to gain and he's booted up but it's -- topic -- Bernanke on. The manager's right Carl and I'll. He's been Draper for many years it's -- vanguard funds could very cheap and it's very diverse sided. Guess of the energy pundits in the volatile. But it it's it tends to be a little bit. You know less riskier less volatile than of its peers. The other -- it dead that I would mention is Goldman Sachs this morning issued a report suggesting that again C 29%. Increase in commodities and obviously that would include energy. Yet and so you know that you can buy commodities by buying a actually EDT -- some sort of direct access to the -- or owning the company to -- as it is. And it don't tends on the larger companies could. As pure play on mines in the large companies have other factors influencing the returns that. You know it it began Wednesday in arranged thing. Sectors right now and possibly you know good long term all the. David -- a lot of investors are looking for income producing assets given the absence of yield when you look at CDs and money market account. Your last pick is FPA new income FP and I acts that has to yield on at a three point 8% what kind of fund business. So that they act I think it's bond fund today in -- were to give him more as a it is in their commander who. Who rented property is it is he is so -- spokesman capital preservation it is this bond. Itty commanders to precaution the spotted invested in -- -- matter. In 2008 having used up 5%. Hours and many of its peers were losing money. And this is -- up on that you -- best city. Take a busy you know -- -- make a lot of money but you're not gonna lose -- -- on that is what is -- -- And it's done very well with the you know a -- He's rolling one year period it's never lost money overseas used to. Charity right now it's gotta -- -- -- -- -- yields but up. You know it's -- How would the manager invests. And to do their spokesman have a position. Here worried about their short term bond fund. Ernie about when the witnesses so way to make sure that you know that. At least you know despondent is gonna hold up well. And so so right now he use. It stated that they're not invested and always in short term treasuries they on some immediate term treasuries. But Davey yeah they just don't think the game pay enough -- stone church and that is no don't hold cash at times. Since ten substantial amount to cash or another they're big investment -- would be in the mortgage. Sector limited it is captain band that's probably where -- the yield is coming from. All right well Dana thank you very much for your time sure -- (%expletive) out of --