Adam Lampe, Co-Founder & CEO Mint Wealth Management, discusses the rising oil and commodities space and how the Fed will approach interest rate hikes amid the stellar February jobs report. 

Opening Bell

S&P on Pace to End the Week Down as Geopolitical Conflict Adds Volatility to Markets

for more insight in early morning trading. I'm joined by adam lamp go founder and ceo of meant wealth management, adam happy friday. Thank you for waking up with us february payroll coming in as well above estimates topping 678,000 jobs versus the 422,000 expected. This is the last report before the Federal reserve meeting meeting next week. Also have a C. P. I. Print next week. How do you see the Fed responding to this data? Well, they certainly need to act. I think we know statistically once the Fed does raise rates, there's an 85% chance the market is positive after about six months. I mean the bottom line is if you look at the last four previous quarter's 84% of companies were exceeding earnings now it's 78%. Yes, there's examples out there Like Google their earnings were up 36% but in the last month were down 6%. So you know the market, I always tell folks the market is dumb, it likes things black and white and we're not always in things that are black and white. So what do you think are the major risks to markets with the Feds raising rates too slowly or too quickly in your opinion? Um I think to slowly I think they need to act and and quite frankly, I wish they had done something just today or yesterday or a few weeks ago, inflation is the biggest issue. But one of our savings grace is how much cash is on the sideline. That's unprecedented. We have 2.6 trillion sitting on the sidelines, so folks will have to spend some of that excess cash to keep up with inflation Inflation as you know, was that a 30-year high? However average wage growth was flat month over month with a micron wave behind us thankfully and huge demand in the labor market. What is your take on consumer spending for the remainder of the quarter? Well, consumer spending drives the economy, in fact about 70% of the economy, so as long as the consumer is spending, that is a great thing in March of 2020, people were not spending anything. Um and then the other thing that drives the economy is government spending and that's about 15%,, you know, people are still spending and that's what drives this economy and that's one of the big factors that we feel, you know, it's okay at this point. This this evening, NATO is meeting to discuss the recent escalation involving europe's latest power nuclear plant. Of course, that was such as scary and tricky situation last night, there were talks that the international community wants stronger oil sanctions on Russia. How do you think this could impact the global oil and gas industry? What's your take on the energy market over the last three months? Well, you know, it's going to, we're going to have to rely on the us more and get away from Russia that, you know, the whole situation in Ukraine, it's disheartening on many levels, but honestly the economic impact is less than 2%. Even if you combine both countries. So you know, the thing that, you know, it keeps me up at night is Putin I think he's very irrational at this point. But at this time, at this point in the stage in the conflict, we're not changing any of our, our investment outlook or recommendations. We are having less exposure to europe. I think they're more susceptible, but the US, you know, we can move on without them. They are a military power that we have to be aware of. But at the same time, economically, they're kind of irrelevant, aluminum, nickel, other commodities are nearly 10 year highs. Automakers like Tesla GM still Lantus are taking it on the chin because of the rising commodity prices and of course their ability to make chips and other parts. Do you think investors adam should be concerned that this commodity shock could lead to another supply chain disruption? Well, we're going to have supply chain issues and it is what it is. But commodity based buying, you know, you mentioned silver, that's a fear based by doesn't produce any income and there's a lot of companies like I mentioned, you know, 78% of companies are exceeding their earnings, you know, you can get income from other places and I think, you know, as much as I like any certain stock out there, Like Google. Uh, you know, it shouldn't represent more than about 3% of your portfolio. Um, and oil is a major player and you know, quite frankly, we'll look, looks really good. It's one of the areas that were very excited about going forward. The NASDAQ is up over 3.1% over the last four weeks, 14% year to date. Which names or sectors within tech. Do you see, we'll see, do you think we'll see the most growth potential moving forward? Well, you know, not to pivot, but I think cybersecurity is an area that there's tremendous about the growth, the googles of the world. I mean the fact of the matter is, um, google's got 90% of the market share. So, and like I mentioned right off the bat there down, you know, 678% you know, in the last month, but yet their earnings per share are up 36%. So that creates some opportunity right there. Tech. You know, a lot of the names like the zooms of the world, the Tesla's of the world, they've been hurt in the last 12 months. So you have to be aware of things that are priced a little high price to earnings matter. Math matters and we follow math. We stay away from emotion. And I always tell folks bottom line diversification is undefeated Given the conflict in Russia and Ukraine analysts have been looking at the cybersecurity sector, space. The industry is up over 7% in the last month. What's your take on this industry at least in the near term adam? Oh, I think that's where the opportunity is. I mean we all talk about, you know, boards that could happen and, and missiles that could be launched, launched. But you know, I think that the unspoken story right now is uh, you know, cyber security, I think that's, that's where a lot of opportunity is. We're kind of in the gold rush period. I think there's a lot of companies out there, whether it be crowdstrike, Um, or other players in the industry. Um, I think that's an area that is, we should all look at is part of our portfolio, but again, as much as I like anyone stock, no, no more than 1, 3%. No more. Okay. And which industries do you feel investors should really be paying attention to? I think oil, I think oil is, is looks very attractive at this point. Um, and I think cybersecurity, I think some tech names, um, I think a lot of your, your high dividend stocks are, are, you know, historically, if we look at past history, high dividend or large value stocks do well out of a recession and you know, history tells us these kind of turmoils proved to be worthwhile investment opportunities. So keep that in mind. Even the boring stuff, you can double triple your money with it. All right, thank you so much for your insight this early morning Adam Lambert, co founder and Ceo of Mint wealth management. We appreciate your time as always.