The first few weeks of 2016 have been volatile and last week I appeared on CNBC and Pittsburgh’s CBS News to discuss what’s going on.
I returned to CNBC “Power Lunch” to talk about value names in technology. As our regular Ramparts readers know, we are long-term investors and look for value and growth at a reasonable rate, not just the hottest stock. Particular stocks that we like that may have been, “thrown out with the bathwater,” as co-anchor Amanda Drury puts it, are Intel, Xilinkx, CA Inc. and Microsoft.
Short-term Intel’s outlook seems soft, but they aren’t the same company that missed the transition to mobile devices. Their CES offerings showed that they are trying to be an ‘internet of things’ provider of chips. There’s a lot of room for chips in the world, and they want to become the premier provider. There’s also new leadership, and recently a large acquisition.
We’ve always seen Microsoft as a business-oriented company, and ever since the new CEO took over, he brought that vision back. They’ve been firing on all cylinders to bring their large client base into the cloud, and we think they have the people and the products to do it.
One other company that has really changed as of late is CA Inc. There was a huge change of leadership about 10 years ago, and a new CEO has come in and refocused the company. These are the kinds of things that we like to see with growth and value in technology.
Later in the day, I also appeared on CBS Pittsburgh News to discuss the drop in oil prices below $30 a barrel, effectively bringing down the stock market. This happens because the market reacts to news, and overreacts in the short term. But you can’t react to the market out of fear or greed, you’ll end up getting burned, specifically on non-taxable accounts like your 401(k).
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