UBS Strategist Says Investors Should Focus on S&P 500 Stocks

Wednesday, 21 Mar 2007 | 10:55 AM ET

David Bianco, U.S. Equities Strategist for UBS, told CNBC’s “Squawk on the Street” that the S&P 500 offers investors a solid play on the strong global economy.

“The S&P 500 has material exposure to the global economy,” Bianco said Wednesday. “I’m often reminding clients that the global economy and business spending are more important to S&P 500 earnings than consumer discretionary spending.”

He likes consumer staples such as Coca-Cola and Proctor & Gamble, but said he’s over-weighted in industrials, technology and energy stocks, especially oil field services.

  Price   Change %Change

“I still believe the best play on the global economy in the S&P 500 is capital goods,” Bianco said. “Names like GE, Textron and even Federal Express are plays on the global economy.” GE is the parent of CNBC.

Market Talk
The recent market sell-off was a an overreaction to subprime and housing, according to David Bianco, UBS U.S. equities strategist. He shares his view with CNBC's Mark Haines.

Bianco said the U.S. economy is slowing, but many emerging markets, including China, are growing internally.

“We expect that to continue,” he said.

Bianco said investors shouldn’t fret about a weaker dollar because it would make U.S. companies more competitive overseas.

“A weaker dollar would be positive to their earnings from a currency translation standpoint,” Bianco said. “It would be particularly beneficial for capital goods companies because it would make them more competitive with their German and Japanese competitors.”



  • Showtimes

    United States
    Monday - Friday 9a ET
    Monday - Friday 15:00 CET
    Monday - Friday 21:00 SIN/HK
    Monday - Friday 23:00 SYD
    New Zealand
    Tuesday - Saturday 01:00 NZ
  • Carl Quintanilla is an Emmy-winning reporter and co-anchor of CNBC's "Squawk on the Street," broadcast live from the NYSE.

  • Simon Hobbs co-anchors the 10 a.m. hour of CNBC's "Squawk on the Street" live from the New York Stock Exchange.

  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

  • Co-anchor of CNBC's "Squawk on the Street," David Faber also is a co-producer of CNBC's original documentaries.

  • Rick Santelli joined CNBC Business News as an on-air editor in 1999, reporting live from the floor of the Chicago Board of Trade.