Strategist Sees Stocks Returning 6% to 8% This Year
Scott Reeves
Mark Thomas, chief investment strategist for ValueStockTips.com, told CNBC’s “Street Signs” that he’s now 100% in cash, but still expects the stock market to return gains of 6% to 8% this year.
Thomas on Monday said he expects to remain on the sidelines for the next two to four weeks to reduce risk in a volatile market. Also, he said many people pull money out of stocks this time of year to pay their taxes.
He likes PNC Financial Services because it trades at a low multiple and holds a 34% stake in Blackrock, an asset management firm. He also likes Burlington Northern because railroads offer significant cost advantages over trucking.
Henry Herrmann, chairman of Waddell & Reed Financial, said he likes agriculture, energy and defense stocks.
“(Defense stocks) have interesting characteristics,” he said. “You don’t have to be concerned about what the Fed is going to do and you don’t have to be concerned about what the economy is going to do. Things are set in stone and it looks to us like the stocks are cheap and strong growth in the next couple of years.”
