John Carey, a portfolio manager at Pioneer Investments, told CNBC’s “Squawk Box” that he sees good value in large cap stocks. He says large cap stocks – the top 200 or 300 companies on the S & P 500 – now offer investors better value through international operations and dividends.
“The small and mid-cap rally has run its course,” Carey said Thursday.
Carey likes mining stocks, healthcare, medical equipment, medical supplies and drugs. He also likes consumer stocks because consumer spending is now holding up the economy in view of lower capital spending and the slowdown in housing. He didn't mention individual stocks by name.
“Technology is a problem area,” Carey said.
Companies face stiff competition from India for services and software and increasing competition from China in hardware.
To be attractive to investors, Carey said U.S. companies have to add value and “really be something special.”