Chief market strategist for Banc of America Investments speaks to local investors

Banc of America Investment Services, Inc. sponsored a dinner meeting on February 22 at the Grand Tradition for their clients. Hosting the dinner were financial advisors Ron Hegardt, senior vice president; Bob Tavano, vice president; Annterese Toth, vice president; and Jared Johnson. Keynote speaker was Joseph Quinlan, chief market strategist of Banc America Investments in New York City. Quinlan, a familiar face on Wall Street, shared with the investors his tips on the current market, what some of the favored choices for portfolios are and an overview of the United States economy.

“Have wealth; preserve it,” is how Quinlan described building a portfolio.

In his overview of the US economy, Quinlan stated that since 1991 there has been steady growth. He explained that the large trade deficit is due to the US growing and that exports are very strong, as are large cap stocks of US companies, which have been reporting record earnings around the world. Quinlan said there is no recession in the forecast and that US Commodity prices have come down. He explained that there are not enough workers for jobs available; thus, unemployment is down. While saying housing prices have lowered somewhat, he said it was not like the early 1990s and that they seem to be leveling off.

On the downside, Quinlan stated that US protectionism should be watched closely and US healthcare was a cause for concern. He reflected that healthcare has become a big issue because of rising costs to both employers and employees.

His recommendations for portfolios included telecom, pharmaceutical and technology investments. Some non-US companies’ commodities mentioned for portfolios were uranium, agriculture in Canada and Australia, pharmaceuticals in France and water. Large cap growth offered good growth rates and earnings. Private equity companies and hedge funds were also favored.

After dinner, additional tips and advise were provided along with a question-and-answer session given by speakers James Lyons, senior vice president, Alliance Bernstein-Regent; Matthew Johnson, JD, Regional Manager Brandes Investment Partners; and Kevin Schmeits, Senior Managing Director Victory Capital Management/Newbridge Partners.