Brian Rogers Guest Host, CNBC Squawk Box, October 14, 2015 Remarks Highlights
T. Rowe Price Chairman and CIO Brian Rogers was featured, Wednesday, October 14, as guest host on CNBC TV Squawk Box’s 20th anniversary program with anchors Joe Kernan, Becky Quick and Andrew Ross Sorkin, as well as fellow guest host Bill Miller, Chairman and CIO of Legg Mason.
Rogers and the group discussed a range of financial markets topics, including the future of investing, the Fed’s recent decision on interest rates, the impact of the global financial crisis on investor psychology, as well as some favored stocks and industry sectors. Below are some highlights from Rogers’ remarks:
On long‐term investing: CNBC host Joe Kernan prefaced the discussion by noting that Rogers had owned several leading stocks for more than 20 years, when CNBC Squawk Box first aired.
Stock market optimism: Rogers opened the discussion with a decided optimism for the stock market’s prospects, noting that there are still a lot of high quality companies trading at reasonable valuations with good dividends, and that he believes the alternatives currently available in other asset classes are less appealing.
Investor concerns, market corrections: Rogers conceded that some investors, nevertheless, remain cautious in the wake of the global financial crisis and may take some time before they get back into the market. When asked about the likelihood of another financial crisis, Rogers said the pre‐ conditions for another major crisis are not in place, but emphasized that market corrections are still possible in the short term.
On the mergers and acquisitions boom: Rogers said that the M&A boom was situation‐specific and driven largely by the cheap cost of capital, the boom in health care M&A deals being a good example.
On inflation: Rogers noted that while a classical economist would say government stimulus was inflationary, we haven’t experienced that inflation in recent years following the financial crisis.
On the mortgage crisis and the impact of leverage on the economy: Rogers said that the Federal Reserve Bank took extraordinary measures in response to the financial crisis because it had to do so.
On the airline industry: Rogers opined that the American consumer is “in good shape”, which creates better prospects for US airlines and the leisure sector. In regards to some of the newer carriers, Rogers also noted that “capital loves new airlines”.
Sector opportunities: Rogers, Miller and the CNBC hosts also discussed investment opportunities in several sectors, including chemicals and consumer goods
Fun fact: Rogers is a member of the famous Harvard Business School graduating class of 1982, which also included Jamie Dimon of JP Morgan and Jeff Immelt of GE.
Important Information This material is provided for informational purposes only and is not intended to be investment advice or a recommendation to take any particular investment action. The views contained herein are as of October 14, 2015 and may have changed since then.
These highlights are provided for informational and educational purposes only and are not intended to reflect a current or past recommendation, investment advice of any kind, or a solicitation of an offer to buy or sell any securities or investment services. These highlights provide opinions and commentary that do not take into account the investment objectives or financial situation of any particular investor or class of investor. Investors will need to consider their own circumstances before making an investment decision.
Information contained herein is based upon sources we consider to be reliable; we do not, however, guarantee its accuracy.
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