when you have a year like 2010 when earnings were up over 30%, many analysts have been projecting much higher than normal, and when you look at the 12% or so increase year over year expected for the first quarter, that's great earnings numbers but a lot of people are going to be disappointed. >> tom: well, to that point, if we're expecting 12% we get 10%, still a decent number, but yet, the disappointment, as you know, and of course the market is about expectation. does this make you bearish on stocks? >> no, absolutely not. it makes me feel that our approach to buying stocks, which is to stick with high-quality, meaning strong balance sheets and long-term profitability, not worry about whatever has had the most recent sharp rises in price. those stocks are likely to do the best going forward. >> tom: i do have to ask you about political headlines these days and how that is figuring into your long-term investment horizons, as you just mentioned. as you know, you're in washington, federal spending is under significant pressure not just now but for many, many years. how does this get figured into what you're expecting from investments? >> yes, after the caveat that being in washington gives me no special insight,

i will-- i will go on to say the fact that both political parties are now facing what i think is the necessary debt-reduction music, it's good news. they haven't done as much as they're going to have to do, but you have to talk about it before you take real steps. once the debt problem begins to be resolved, voluntarily-- because one way or or another it's going to be, and we prefer voluntary action than for it to happen involuntarily-- i think long term that's good for the u.s. economy. >> tom: perhaps to that point you're looking for a big multinational companies based here in the u.s., one of your new picks, at&t dow component, of course global technology and telecom firm. it's up to closest tos ts highest price we've seen in the last 12 months. what fuels is from here? >> i think basically the fact that it's earnings are likely to be solid. i think the earnings growth story with that beginning to be over people are going to start look increasingly for solid earnings and companies not likely to truly miss--

meaning their earnings are tried sliding. >> tom: how about travelers here, another dow component on the insurance side. as we're seeing low interest rates, possibly those days being numbered, does that impact the portfolios of insurance companies? >> well, i think we have to have a concern about financial companies in general, but the beauty of the insurance companies, and spicly travelers, i don't think they have as many problem assets as the big banks. many of the big banks still have substantial write-offs to take, and when you look at the travelers with a p/e wrarb rairbio of nine and a price-to-book ratio of 1, you don't find many good stocks cheaper than that. >> tom: you're calling it a screaming value for travelers. >> that's right. i believe so. >> tom: wal-mart here, this week an executive said it's a pickup for high-income shoppers due to high energy pripss do you think high energy prices are good for wal-mart? >> i think any rising prices

are good for wal-mart because sooner or later their strength is that they are the low-cost seller. and so as a result, whenever people feel under pressure and they are going to buy something, they will go wherever the price is cheaper. >> tom: finally, october 8, the last time we were graced with your presence, you liked chevron and exxon. those have seen significant price increases. you also liked johnson & johnson which dropped. do you like any of this trio? >> i like all four of them, still. >> tom: do you have positions in all the stocks we mentioned tonight? >> that's right, we own all of them. >> tom: our market monitor this friday evening is randall eley with the can loam. >> susie: and finally tonight, not everyone gets a special movie to celebrate their birthday. but the late comedian charlie chaplin does, thanks to google! the search engine produced a short film in chaplin's unique slapstick style to mark his 122nd birthday tomorrow. click on what google calls "the doodle" at the top the home page to watch it.

tom, that google now has a team of workers who do nothing but doodle all day. great work if you can get it. >> susie: that's "nightly business report" for friday, april 15. i'm susie gharib. have a great weekend-- you, too, tom. >> tom: good night, susie. i'm tom hudson goodnight, everyone. we hope to see all of you again next week. "nightly business report" is made possible by: this program was made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt captioned by media access group at wgbh access.wgbh.org