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Stay at home stocks 'may not have that much more room to grow': WealthWise Financial CEO

Loreen Gilbert, WealthWise Financial CEO, joined Yahoo Finance Live to discuss her market outlook, sectors of the market she's watching, and what she's expecting out from the holiday shopping season.

Video Transcript

SEANA SMITH: But we want to start today with that broader action that we've seen in the market today and also what we've seen over the course of this week. We see all three of the major averages in the green today and for the week. It started off Monday, like I mentioned before, on that strong news that we got from Pfizer. That's 90% efficacy rate for its vaccine, of course getting investors a little bit excited.

So here to break down exactly what we're seeing play out in the market, we want to bring in Loreen Gilbert. She's the CEO of WealthWise Financial. Loreen, great to have you back on the program.

LOREEN GILBERT: Thank you.

SEANA SMITH: Help us make sense of what we're seeing play out in the market, because on one hand, you see that record number of COVID cases day in and day out. You would think that that would have investors a little bit nervous, yet when you take a look at some of the market leaders today, that recovery trade is leading the way. What's going on right now?

LOREEN GILBERT: Yeah, you have-- we are still seeing an increased case of COVID, and we're going to continue to see that. And like you mentioned earlier, we're having certain areas of the country go into shutdown mode again, whether it's New York or California, where I am. More and more counties here are gonna be shutting down.

So I think you've got two things. Investors really looking ahead to say we have a vaccine that's c-- that looks very positive-- we're probably going to have more good news with other companies like Moderna, which bodes well for the longer term. And so when exactly will that be? Maybe it's mid-2021.

What we have to recognize-- it's going to take a while to get this vaccine out. Once we have it, it has to actually be distributed and people have to be willing to take it. Maybe only 60% of the population is willing to take it, so we'll see where that lands. But definitely the trade has been around that stay-open trade.

ADAM SHAPIRO: You know. Loreen, we're gonna get earnings reports from some of the major retailers next week, among them Macy's, Walmart, Target. And you're pointing out that the holiday season-- roughly people buying stuff from November through January-- it's gonna be pretty much in line with what we saw last season, $1.15 trillion, possibly with all the money that Americans-- some who've been fortunate enough to hold onto their jobs-- have in savings accounts right now. Could that number be even bigger, because we see commerce continuing through the pandemic?

LOREEN GILBERT: That's a great point. We see the savings rate about double what it normally is this year. And with that, what are people gonna do with that money? Are they gonna hold on to it, or are they gonna spend it during the holiday season?

I would vote for the consumer to be strong and want to spend that money. That's what we tend to do here in the United States is spend the money that we have. So I would say what the baseline expectation is, about as good as last year was, but I would look for a strong e-commerce trade with people spending a lot of money. So look beyond Amazon, and look to some of the other companies like Etsy or Best Buy or Nike that would do well with e-commerce.

SEANA SMITH: Hey, Loreen, what about the work from home trade, because when you take a look at a name like Zoom, it's on track for its biggest ever weekly drop? Now, this has been a name that investors have been favoring over the last seven to eight months. Is it time for maybe some investors to lighten up in terms of their weightings that they have allocated to some of these names?

LOREEN GILBERT: Yeah, I think people made some quick dollars on some of the stay-at-home. And I do think Zoom has done a great job of expanding their market share. But in general, what I would say is look to other names that-- beyond just the stay-at-home, and look to other names, whether it be in technology or whether it be even leaning towards the value side of investing. Look to some of those other names, because those names that have been going up so much may not have that much more room to grow.

ADAM SHAPIRO: Do you see some opportunity, too, as-- I mean, I'm looking at the sectors which are performing pretty strongly right now. Energy, you know, today up 4%-- there's still a lot of upside in a lot of these sectors. Industrials-- we're getting to, say, look into the future industrials. What do you think?

LOREEN GILBERT: Yeah, you know, we like industrials. We think that looking at what we're gonna see as far as fiscal stimulus-- we know there needs to be fiscal stimulus just to get people to make it, right, and whether it's businesses or individuals. But looking beyond that, we see an infrastructure package coming through. We think there's bipartisan support for that, which would help industrials.

We also see that there might be some relaxing with this China tension, so-- maybe a softening is what I would characterize it as. And with that, some industrial names that have been trying to make it and grow in China could also do very well. So we do like that area of the market.

SEANA SMITH: Loreen, what's the timing that the market is expecting a fiscal package? Because I think that's a big question mark right now. We hear from some analysts or some market watchers who say that market isn't really counting on one at this point. But it sounds like you're still encouraged that we are going to get something and relatively soon.

LOREEN GILBERT: I think we will get something in the $1 to $2 trillion mark. First of all, there needs to be some money that goes to states. And now that McConnell has softened his stance on that, I think we will see-- not only well we see a fiscal package, we will see some money going to states as well that will help those hurting states.

And probably sooner than later is what I would say. I don't know exactly when that will be, whether it's before the end of the year or if it's in January. But I would say within the next few months.

SEANA SMITH: Yeah, timing is certainly too hard to tell at this point. But, Loreen Gilbert, CEO of WealthWise Financial, thanks so much for taking the time. Good to see you.

LOREEN GILBERT: Thank you so much.