We're in the rotation from the growth side to the value side: James Investment Research

Barry James, James Investment Research Portfolio Manager joins the Yahoo Finance Live panel to discuss the latest market action.

Video transcript

ZACK GUZMAN: I want to shift back over to the market, though. No doubt a little bit more muted here in terms of the reactions we're seeing play out after last week's inflation fears came to the front of investors' minds. And for more on that, I want to bring on our next guest, Barry James, James Investment Research Portfolio Manager joining us right now.

And Barry, I don't want to overlook kind of this, you know, red Monday that we're having here. Granted, it's not necessarily major moves here. But given kind of the fears that we've seen play out over the last couple of weeks, what's your take right now on where we sit on this rotation we've seen play out moving away from growth names, given those inflation fears coming top of mind now?

BARRY JAMES: Yeah, we're right in the middle of this transition, the rotation from, really, the growth side to the value side, from the large side to the smaller side. And this is just like, you know, the currents and the tides. And they meet. And they cause, you know, some ripples and so-- forth. But it's really it is happening, and it's going to continue to happen.

So the government behind it. Earnings are just rocking along in great order. And companies are taking those earnings and buying back shares, which is a change of pace for them. I was worried when they were just issuing shares. So we've got that as a key component. And then this is just like a pause that refreshes as we were talking a little bit about cryptocurrency just a moment ago.

So we've had this additional rotation, if you will, from the small value into large value. So that is, you know, another aspect of-- you know, as we look at investing at this point. But value, large and small, is going to be a place, I think, for quite some time. And the range of difference between the growth side and the value side is still extreme, even after this big run in the value side and the small side. So I think there's good things yet to come in both those areas in this rotation. This is just a normal part of it.

AKIKO FUJITA: And it looks like you've highlighted some of those value plays that you like. One thing that caught my attention here is more of the infrastructure investment. You specifically had MasTec. But what do you see there that you like?

BARRY JAMES: Yeah, well, it has been doing well. So-- and I'm not-- I'm never afraid to buy a new high, because you can only buy the top once. It's the old rule of law. But MasTec is all over infrastructure from, you know, telecommunications to oil and gas, 5G. It's huge with AT&T in that area. Very well-run company. Great free cash flow. The margins are very high. Earnings are coming in very strong. So we see this as a continuous play, not just a one-off because of some things going on in Washington. So, really, you know, think that MasTec is a good play.

ZACK GUZMAN: All right, Barry James, James Investment Research Portfolio Manager, appreciate you coming on here to give us that. Be well, my friend. We'll chat again soon.