Slower Growth Ahead Means Good Stocks At Good Prices, Analysts Say
The fallout from the subprime mortgage sector is overdone, Peter Andersen, portfolio manager for Dreman Value Management, told CNBC’s “Morning Call.”
"I think we will see some more volatility over the next two to three weeks,” Andersen said Monday. “And, I think it’s a good opportunity for buying those names you like.”
Sam Stovall, chief investment strategist for Standard & Poor’s, said investors should be cautious. Calling himself a “single-digit bull,” he looked for slower growth ahead.
“I think the S&P is going to post an advance of 6.5% this year,” Stovall said. “Our investment policy committee has a price target of 1,510 for the S&P 500. Certainly, we’re going to be experiencing a deceleration in corporate earnings -- about a 7.5% increase for 2007 vs. a 15% for 2006. Also in the first quarter, we expect to see only a 5% increase in overall operating results vs. the more than 8% that we had expected in the beginning of this year.”
Even though the growth may be slower, Dreman Value Management’s Andersen urged investors “to stay the course.”
“If you liked certain names two months ago, those names are slightly on sale now and I’d just add to your portfolio,” Andersen said. “I would not make any drastic changes because I think this is a well-contained market sell-off.”