About John Feeney
JoAnne Feeney, a partner and portfolio manager at Advisors Capital Management, discussed market conditions in a September 2024 interview. She stated that fundamentals are "supportive of the rally" and pointed to opportunities in industrials and healthcare where earnings are improving after higher interest rates. Feeney said the earnings season has been "pretty good" and emphasized that investors should focus on future guidance rather than past performance, noting that her firm owns 40 to 50 stocks and looks for growth at a reasonable price (GARP) names, value, and income.
Feeney described expectations for inflation as "modest" and said the longer-term trend appears to be moving in the right direction. She commented that Federal Reserve Chair Powell's remarks signaled more attention to the labor market, which could give the Fed "wiggle room," but she added that she does not expect a lot of rate cuts and believes the Fed will be cautious. Regarding specific picks, Feeney said she views the cybersecurity space as "almost like a utility" due to the increasing cost of hacks, and noted that Palo Alto Networks adjusted its business model to help companies overcome switching costs.
Source: AI-verified profile updated from John Feeney's recent appearances.
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Transcript (8 segments)
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Frank0:00
Bob Pisani laid out the momentum trade and the risk to play that momentum continuously. How are you viewing the rallies with the S&P and Nasdaq hitting record highs?
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Bob Pisani0:13
Frank, we have a bit of a shrink as we are investors for the long term. We want to look at the fundamentals. Some have been supportive of the valley rally. We are not talking about the ones at the top that experienced a fair bit of momentum. Look farther down into industrials and healthcare where earnings are really starting to look better than when the higher interest rates hit them. You combine the earnings fundamentals with opportunity, it has been a pretty good season so far.
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Frank0:55
I'm looking at the estimate. After that, double digits. 15% for Q4. 15% for Q2. How important is it we maintain that earnings level growth?
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Bob Pisani1:09
You know, clearly, Frank, some of the rally that we have seen is because of a small set of stocks. The AI-driven innovation wave has impacted valuation here. To your point, we have a low valuation. This earnings season is pretty telling. We will watch for not just what the company delivered, but guidance. When you own a company, not what it has done for you in the past, but what it can do for you in the future. You have to be really particular at this point in time. We own 40 or 50 stocks. We can pick and choose. We are looking for GARP names, value and income.
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Frank1:56
We get a read on the consumer today with Delta and Pepsi reporting today. We will look at the earnings and guidance today. CPI. How do you think the market reacts?
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Bob Pisani2:11
Expectations are modest at this point. Constant in terms of the year-over-year numbers. We are expecting that to hit a hiccup in some of the inflation sources like auto insurance, for example. Overall, the longer-term trend does look like it continues to move in the right direction. Obviously, Chair Powell's comments this week signal more attention in the labor market. That may give the Fed some wiggle room. We are not of the camp that we expect a lot of rate cuts. We do believe the Fed is going to be cautious of when they cut and by how much because they really do want to stuff the inflation genie back in the bottle.
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Frank2:59
I want to move on to your picks. I want to get to the picks that hedge markets. You are looking at risks geopolitically and macro level. Two were interesting. Palo Alto Networks and Raytheon. Why buy those two today?
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Bob Pisani3:18
Yeah, we view the cybersecurity space as almost like a utility. We keep seeing hacks and these hacks are expensive. Companies are viewing this as something we'll get around to eventually to something they have to do now. Palo Alto, in particular, had to adjust their business model to help companies overcome the big switching costs of moving away from discrete pollution solutions.
