After Dow 13,000: Where to Put Your Money Now

Julie Jacobson

New York Stock Exchange workers finish up trading minutes before the closing bell at the Exchange, Tuesday, April 3, 2007 in New York. Stocks surged Tuesday on signs of resilience in the housing market and the U.S. consumer, with falling oil prices giving investors an extra reason to rally. The Dow Jones industrials gained more than 120 points. (AP Photo/Julie Jacobson)

The Nasdaq hit a six-year high Wednesday, as the Dow Jones Industrial Average zoomed past a record 13,000. How should investors play these dizzying heights?

David Scott, senior vice president and senior portfolio manager for Chase Investment Counsel, and John Praveen, chief investment strategist at Prudential International Investment Advisers, advised "Street Signs" viewers where to put their money.

Scott, who advises the Chase Growth Fund, is a firm believer in the Beige Book's findings that U.S. retail remains strong. He told CNBC's Erin Burnett with "adquate" liquidity in the system, consumers will see "some slowdown -- but they'll continue to spend."

On that basis, he said "J.C. Penney and Kohl's look particularly good," and "McDonald's and Colgate-Palmolive look pretty good as well."

Praveen disagreed about retail's strength on a valuation basis. Despite the Dow's stratospheric climb -- he thinks it will cross 14,000 by year-end -- he said international markets still offer "better value" than U.S. markets.

"Europe is the place where we have the biggest bets," he said, specifying the Czech Republic and Poland.

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