Sarat Sethi, Managing Partner, Douglas C. Lane & Assoc.

Earnings are coming down because they can't produce enough cars, but demand is strong. So, he'll hold onto this. Trades at only a single-digit PE.

Airlines are getting hit now by higher fuel costs, but this is a reopening stock and it trades at only a single-digit multiple. Endure the next few weeks of bumpiness as the Fed raises rate and hold cheaper-value cyclicals because they will outperform. He would add to it. The CEO said recently he can't meet customer demand.

They're in the penalty box. During lockdowns, people were doing a lot of e-commerce, but will be going out. Also, PayPal spent a lot of money to add customers but that didn't pay off. The CEO has his work cut out for him. If they miss a third quarter in a row, then they're in trouble. This is a show-me story. That said, he is adding to this core position because valuations are so low.

A value trap! After earnings season, he will sell this and use this as a source of funds to buy another stock(s), perhaps financial.

A value trap! Every new CEO gets into something new like emerging markets or Russia. After earnings season, he will sell this and use this as a source of funds to buy another stock(s), perhaps financial.

The question is will Washington allow this merger with Spirit, just announced. It's better for the entire airline industry if it passes.

It's more of a global player. It's made a few missteps, so he's unsure owning this longer term. He won't add to this.

It's 32% off highs. It's a cyclical trade and are sold when investors fear a recession. But XPO is growing earnings and cash flow. He likes it. The CEO has done a great job. Definitely oversold and he would add at these levels.

Valuation down to 11x earnings. He expects a strong quarter with good cash flow from their cable subscriptions.

Market outlook Stocks are so pegged to interest rates now. If rates go 1.6%-1.7%, money comes out of growth and into value. If we stay around this level, earnings hold and we see clarity in terms of rates in the next couple of quarters, we could see more money going into stocks that have earnings tailwinds like financials, like MS. But volatility spikes and rates pass 2%, money will come out of stocks in general.