Michael Metz, chief investment strategist for Oppenheimer, said Tuesday’s downbeat market is just a pause -– not the first sign of a sell-off.
“There’s so much money chasing equities, and frankly the alternative investments like bonds and real estate are completely unattractive,” Metz said. “So, it looks like the mania continues. There’s nothing to stop it at the moment.”
Metz said growth will come from large cap, multi-national companies. He also likes energy and metals, which also reflect strong growth outside the U.S. He’d sell retail stocks.
Bruce Bittles, chief investment strategist for Robert W. Baird, said he looks for a strong market in the first half of the year, followed by a consolidation, or even a correction, in the second half.
“I’d say there’s no place else for the money to go,” Bittles said. “The stock market is thriving because of low interest rates. Investors are cautious despite this big run. Although we’re over-bought, I think the fact that we could get this over-bought is bullish in itself.”