Thomas Atteberry, analyst and portfolio manager for First Pacific Advisers, told CNBC’s “Power Lunch” that investors might consider large-cap, multi-national companies when picking stocks.
“Try to stay away from the financial sectors of the market because they’re very exposed to the consumer,” Atteberry said Tuesday.
He said inflation remains out of the Federal Reserve’s “comfort zone” and he therefore expects interest rates to remain at about the current level of 5.25%.
“Looking out to end of this year and into next, I think there’s still a chance you’ll see the Fed raise rates rather than lower them,” he said.
But Joseph Stocke, chief investment officer for Stoneridge Investment Partners, disagreed.
He said he expects inflation to decline to about 2% in the future, setting the stage for the Federal Reserve to cut interest rates. In a year, he expects interest rates to be about half a percent lower than the current rate.