WealthWise's Loreen Gilbert on her end of year market outlook
Loreen Gilbert, WealthWise Financial CEO, joined Yahoo Finance Live to discuss today's market action and her outlook heading into 2021.
JEN ROGERS: Is all up more than 1%-- just about 14 minutes left here. Let's bring in Loreen Gilbert, she's WealthWise Financial CEO, to talk about the market and some stocks in particular. And, Loreen, I actually want to start with Zoom and just go over that with you, because we got earnings out yesterday, and we're seeing the stock here off more than 15%. And I was seeing some comments that you had made in November-- I was going to say earlier in November, because I can't remember that it's December yet, because it's crazy.
But you talked about maybe being able to buy Zoom on a dip, but also saying some of these stay at home stocks might not have that much further to run. What are you thinking about a name like Zoom now when we're seeing a big sell-off here, even though their earnings were pretty good?
LOREEN GILBERT: Right. So just like you said, the earnings were fabulous and they exceeded expectations. But there's been such a run-up ahead of that news, that it really had run-up, in a sense, too much. And now we're seeing the pullback. So you know, people bought on the expectation and then now are selling on the reality of where that company is. And I'd say that for many different companies that have been the stay at home play.
So right now, we've seen a rotation away from most stay at home plays towards the reopening idea. Even with increased COVID cases in the mix, I think investors are looking beyond that.
ADAM SHAPIRO: I want to switch gears just momentarily, because NASDAQ announced it has plans to require all of its listed companies to change its board of directors, and they expect this to happen within one year. They have to add at least one woman or a person who from an underrepresented minority. You've said, wait just a second-- put that into context as to what you mean by, wait, hold on one second.
LOREEN GILBERT: So it's a proposal that's going to the SEC. And the SEC has to either approve it or deny it. And what we see is it brings up three questions. One, should there be a mandate for board diversity? I think most people would agree that there needs to be more diversity on corporate boards. So one, should there be a mandate or not?
Two, what does diversity mean, and how do you define it? And three, what's the timeline for these things to be implemented? And in California, there was a bill that was passed to bring in women on corporate boards out of companies that were based out of California-- public companies. That has now been expanded by Governor Newsom to include minorities. And that's AB-979.
So now what we're seeing with the NASDAQ proposal is, you know, the same kind of simulation on what we're seeing going on in California and now being expanded to the rest of the country. So as far as mandates are concerned, I would-- even though it would benefit someone like me who would like to sit on publicly traded corporate boards, I would say there could be just incentives put in place so that companies are incented-- just like as individuals, we're incented to make charitable contributions. Today is giving Tuesday, and if we think about making charitable contributions, we get a tax benefit for that.
And with that, maybe corporations get an incentive for diversifying out their board. As far as the diversity, you've got to define what diversity means. And diversity on corporate boards could be much more than skin color or sexuality, but it could be as far as looking for diversity as far as talents are concerned. And corporate boards need more diversity as far as talent and even age is concerned.
And then finally, as far as timeline-- boards need time to implement these changes. And one year is so rapid, that's so fast. Boards need a few years to get through some of these changes. So I would expect there to be more discussion on board diversity happening going forward.
JEN ROGERS: Some people would say they've had decades to make these changes and haven't made them. So do you think, though, if we do get diversity here, just real quick, that companies that have that perform better? Because that's what we've seen in the data.
LOREEN GILBERT: The data definitely shows-- if you look at Deloitte has done studies on corporate board diversity. And in fact, the bottom line for companies is it's beneficial for them. And I think you've seen many companies make that headway. But to your point, companies have had a long time to do this, it hasn't been done. So what is the next step to make sure that there is diversity on boards? And there will probably be some kind of regulation around that, similar to, by the way, what goes on in Europe.
JEN ROGERS: Loreen Gilbert, WealthWise Financial CEO, great to get a chance to talk with you.
LOREEN GILBERT: Thank you so much.