Investment expert explains how to take advantage of the market’s ‘emotions’

[LAUGHTER] TWO THINGS WHEN IT COMES TO THE CROWDS. THE MULTITUDE ARISTOTLE AND OF COURSE EXTRAORDINARY DELUSIONS, CHARLES MCKAY, WHICH BRINGS US -- LET ME BRING IN MY FIRST GUEST HERE. CHIEF MARKET STRATEGIST, PHIL, I THOUGHT WE WOULD HAVE IT ON THE SCREEN, I DON'T KNOW WHAT THIS IS BUT YOU KNOW BOTH VERY WELL SO YOU GOT ARISTOTLE EXULTING THE CROWDS AND HOW MUCH WISDOM THERE IS AND THEN ON WALL STREET, THEY HATE CROWDS, THEY ARE AFRAID, TALK ABOUT EMOTIONS, HOW DO YOU DEAL WITH THE EMOTIONS THAT HAVE PEOPLE WORRIED LATELY? >> I TAKE ADVANTAGE, IT'S QUITE SIMPLE. IN THE END, EMOTIONS BECOME THE VICTIM, THEY CREATE THE VICTIM. SOMETIMES FOLKS ARE SO WOUND UP IN IT, THEY MAKE TERRIFIC MISTAKES BASED ON EMOTIONS AND ONE THING I HAVE TO DO EVERY DAY IS STRIP MY EMOTIONS OUT BECAUSE THEY ARE IRRELEVANT AND FOCUS ON THE FUNDAMENTAL, THE TECHNICALS AND YOU SAID SOMETHING IMPORTANT, I WANT TO KNOW WHERE THE CROWD IS GOING, I DIDN'T WANT TO BE, NOT WHERE THE E CROD IS. >> THAT'S WHY I THINK IT'S REALLY IMPORTANT, TO KNOW WHAT YOU OWN. IF YOU BUY FROM MOMENTUM, FOR TECHNICAL REASONS AND BROKE THE 50 DAY, WHATEVER IT IS, THAT'S FINE, BUT FOR SOMEONE WHO WANTS TO SINK THEIR TEETH INTO AN INVESTMENT, KNOW WHAT YOU OWN AND IF YOU KNOW AND IT'S SOLD OFF, YOU SHOULD BE LICKING YOUR CHOPS A SET OF HEADING FOR THE EXIT. >> WHY ABOUT IT AND WHAT IT IS THAT'S IMPORTANT TO YOU, BY THINGS IN YOUR SPHERE, SOMETHING YOU APPRECIATE WHAT YOU ARE RIGHT, IF YOU SEE AN OPPORTUNITY, THIS IS A GREAT NAME. OF INCREDIBLE SUCCESS. IF I CAN BUY IT ON SALE IN GREAT CONVICTION, HE LED THE SHOW WITH WHERE IT'S GOING SO I WILL BE WITH THE COMPANY SUPPLYING THE PARTS AND ACHIEVE, THAT'S HOW WE MAKE MONEY. FIVE WHEN PEOPLE ARE FEARFUL, ESPECIALLY WITH CONVICTION. >> A BROADER VIEW AND YOU'VE BEEN POSITIVE ON CONSUMERS, CONSUMER SENTIMENT IN THE INDEX OF THE MOST 10% AND EXPECTATIONS UP 15%, TALKING ABOUT SENTIMENT OUT THERE BEING A CONSUMER SENTIMENT. >> THEY ARE SPENDING A LOT AND CAN'T DISREGARD THE OTHER PORTIONS MAKE LESS THAN 100,000 A YEAR, 100 MILLION PEOPLE, THEY ARE CATALYST AND WHEN THEY ARE CONFIDENT IN SEE GAS PRICES COME DOWN THEY ARE SPIKING A BIT BUT THEY COME DOWN OVER TIME AND THEY SEE GAINFULLY EMPLOYED, THEY COMPETE WITH INFLATION AS THEY BECOME MORE CONFIDENT ESPECIALLY INTO ONE OF THE MOST VOLATILE TIMES OF THE YEAR. WE ARE NOW MID JULY AND IN THE NEXT TWO MONTHS HE GETS TOUGH, CONSUMERS CONFIDENT, WHO WILL HAVE A LESS VOLATILE. INTO NOVEMBER. >> YOU ARE LOOKING FOR A SOFT. >> I AM, I'M CONCERNED WITH IRAN. WE NEED OIL PRICES TO COME DOWNA TOUGHER SEPTEMBER THAN EXPECTED. >> 2% LOOKING FOR HARD LANDING SO WHETHER IT'S SOFT LANDING ON NO PLANNING, WE ARE HEADING IN THE RIGHT DIRECTION. WANT TO SKIP THROUGH THIS AND TALK ABOUT A COUPLE OF NAMES, LET'S TALK ABOUT THE NEXT, WE JUST KIND OF COVER THAT DATA CENTER DEMAND IS THROUGH THE ROOF, THIS IS THE BASIS FOR THE IDEA, WE'VE HEARD THIS A LOT OF TIMES AND WHEN THE UTILITIES SO TAKE OFF. >> WE EXPECT EARNINGS TO GROW BETWEEN 60 TO 120% IN 2027 ACROSS THE INDUSTRY AND THE REASON WHY IS THE DEMAND WILL EXPLODE OVER THE NEXT 12 MONTHS. YOU CAN'T HAVE DATA CENTERS COMING ONLINE AND DEMAND FOR POWER AND NOT HAVE SOMEONE BE THE SOURCE OF IT SO I THINK IT IS AN OPPORTUNITY ONLY IN COMMODITIES BECAUSE AS PART OF THE STORY, BUT PEOPLE SUPPLYING POWER AND TRIPLE DIGIT EARNINGS GROWTH IN THE SECTOR IN THE NEXT 2027. >> FORTY SECONDS, ROSS STORES. HE TALK ABOUT STARTING SALES AND EXECUTING, THEY ARE GROWING A FOOTPRINT, THE STOCKS HAVE LOOKED PRETTY GOOD. LAST WEEK IT LOOKS PRETTY GOOD. IT'S ON THE VERGE OF A BREAKOUT, WHERE YOU SEE IT GOING? >> IT IS DOING QUITE WELL, 20 OR 30% DEPENDING ON LOCATION. WE ARE GOING INTO THAT PERIOIODF TIME, BACK TO SCHOOL IS THE SECOND BIGGEST SPENDING SEASON OF THE YEAR WITH THE HOLIDAYS ASIDE. THAT'S A RIGOROUS SHOP IN THE STORE AND A DEFENSIVE PLAY WE HAVE TO GO, I WOULDN'T CALL IT DISCRETIONARY, ALMOST A STAPLE AND THE REASON IS IT'S A FUNDAMENTAL PLACE WHERE PEOPLE BY THINGS FOR THE CHILDREN AND FAMILIES IN THE TRADING AND GOING INTO THE BEST SEASON OF THE YEAR, GREAT OPPORTUNITY. >> AND IF YOU'VE BEEN THERE,