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There are a lot of great reasons to be investing money in the stock market today: Capital Wealth Planning CIO

Kevin Simpson, Capital Wealth Planning Founder & Chief Investment Officer joins the Yahoo Finance Live panel to discuss the latest market action.

Video Transcript

AKIKO FUJITA: We are seeing green across the board on this Friday. You're taking a look at the Dow up more than 180 points, the NASDAQ up 186, and the S&P 500 up 42. Stocks moving higher despite some concerns about that hike in the capital gains tax. Let's bring in our guest Kevin Simpson. He is Capital Wealth-- with Capital Wealth Management. He's the founder and CIO there. Kevin, it's good to talk to you today. I like your note, how you talk about how to invest in this environment. And you say going for some old-fashioned names isn't necessarily a bad thing.

KEVIN SIMPSON: Yeah, I think, you know, it's a Friday, Akiko. Why not have old school optimism as our common theme? And there's a lot of reasons to be excited. Earnings have been coming in great. Unemployment has been coming down each and every week. Interest rates are still at historic lows, or at least, darn close. I think that the American consumer is about ready to explode from a spending standpoint. And each and every day, more and more of us are getting vaccinated. In fact, just about an hour ago, I got my second dose of the COVID vaccine. So I think there's a lot of optimism in the air. And there's a lot of great reasons to be earning and investing money in the stock market today.

ZACK GUZMAN: When it comes to where you would recommend putting new money to work, just reading through your note here, interesting to see, you know, we talk a lot about Apple, not sure we talk so much about Medtronic. So there's an interesting one there. Talk to me about what you like at that company and why it's on your list here.

KEVIN SIMPSON: Well, if we think of old school as our theme today, we brought three stocks to the table, Apple, which you mentioned, is that old school? I don't know. I think it can make an argument, a strong one, that it's at least old school tech. But Medtronic, you know, you think about this company being an old-fashioned artificial heart manufacturer. And that's really hardly the case. I mean, right now, they are the leader in cardiovascular cutting edge technology.

And, the best thing that we like about Medtronic is that their customer base is increasing. And you always want that with the stock. So 10,000 baby boomers are retiring each and every day. 10,000 baby boomers retiring every day, all of whom want, all of us want better, healthy, longer retirement. And all of us eventually will become candidates for Medtronic products to help us along that path. So from a standpoint of a great chart, Medtronic is a great investment. Its customer base is increasing naturally by 10,000 people every day. And we're looking at this not as a trade, but a 5, 10, 15-year hold.

AKIKO FUJITA: Kevin, on Apple, you said you just started buying again. What are you seeing in the company right now that you like? Or is this just about valuations coming down?

KEVIN SIMPSON: Yeah, Akiko, we had sold because of valuations. I mean occasionally, you see things get a little frothy. We took some profits in Apple. It's a stock we loved, we followed and owned for a long time. We love the products that they came out with and sort of highlighted last week. We think earnings are going to be very solid next week. And we started to re-initiate the position. And on any weakness, on any pullbacks, we're going to be buyers. And I think that your viewers should be as well.

ZACK GUZMAN: And Kevin, I mean, when we look at maybe some of the headwinds, obviously, yesterday, jitters after we heard about that potential tax proposal here on the capital gains front, maybe showing some potential there under the surface as we get more and more earnings, but also as we were talking earlier on the show, not necessarily seeing a lot of pops. Obviously, expectations are high. So when you factor that in for the next couple of quarters here, how do you see that moving forward, given, you know, we started all of this with a bunch of unknowns coming up? So it seems like a tough time to really factor in some of those risks.

KEVIN SIMPSON: You know, I think the real risk that could hurt the boom in the economy isn't so much the taxes, but it's the virus itself. I just got a shot an hour ago, as I mentioned. But the point is, there are so many growing variances. We are so far as a society, as a global society, from herd immunity, that there are real problems there. So I think we're going to get there. I'm optimistic about it.

But to me, that's a bigger concern. You know, whether it's politics or horse trading, you're going to start at one point. And usually, you're going to end up at another. So I don't think we want to have a complete meltdown on the fact that capital gains taxes are probably going to increase. Anyone that was following the elections probably saw that that was a talking point that we should expect. And I think it's a reality. But I don't think that what we heard yesterday will be the final outcome.

ZACK GUZMAN: All right, Capital Wealth planning founder and chief investment officer Kevin Simpson, appreciate you coming on here. Congrats on that second dose. Have a great weekend, man. Appreciate you stopping by.

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