Looking to add some new names to your portfolio?
Real Money contributor Stephen "Sarge" Guilfoyle breaks down some of the stocks that he's keeping an eye on ahead of the Fed meeting. Guilfoyle admitted that he picked these stocks to watch because he believed that the Fed will be cutting rates when they next meet.
So, how did he come up with the names that he's watching?
"You have to focus on possible higher up valuations because the Fed--they need to cut short term rates. Not everyone agrees with me on that, but I think they need to, and I think they realize...I hope they realize that they need to...so you're going to get higher valuations, but you're also going to get slowing earnings, contracting earnings, even. Beyond that minus 0.4 % that we saw for the first quarter, we're probably gonna get something more like minus 2% for this for the next quarter. So the even higher valuations might only keep us in a place where we might even still see some contraction in the market going into that unless we get great headlines regarding trade. So who knows, right? You've got to protect everything you do. I'm looking at names I have that have good setups," he explained.