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ING Strategist: We're Still Overweight In Large Cap Stocks

Monday, 5 Mar 2007 | 11:47 AM ET

Never mind the meltdown: Two "Morning Call" guests say this past week's stock slide was "pretty normal" -- and it may turn out to be a good year for equities, after all.

William Noonan, CEO of Contravisory Research & Management, categorized the market turbulence that began last Tuesday as "a pretty normal corrective phase," given the "four-year bull market" the world has experienced. As for downside risk, he is "looking for a 5% to 10% pullback;" the CEO put firm ground at roughly 1,300 on the S&P 500 and 11,500 on the Dow.

Market Outlook
An analysis of the market as it shapes up for another wild ride, with William Noonan, Contravisory Research & Mgmt. CEO; Brian Gendreau, ING Investment Mgmt. investment strategist; and CNBC's Mark Haines

Brian Gendreau, investment strategist at ING Investment Management, mused that his firm is in "kind of an awkward position": He told CNBC's Mark Haines that in late January, ING took a "defensive position" by going neutral in equities and upping its cash position. Gendreau said he and his colleagues "saw things we didn't like," such as complacency and ever-higher leverage -- and last week, they moved "out of cash." Nonetheless, the strategist told Haines that he foresees a "good year" for stocks, especially large caps -- where ING is still overweight.