Fund Manager Likes Consumer, Mortgage-Related Stocks

David King, portfolio manager at Putnam New Value Fund, told CNBC’s “Closing Bell” that he likes consumer, mortgage insurance and mortgage finance stocks.

“We’re certainly not calling for a turnaround (in housing) but essentially it won’t be difficult enough to drag down the economy or decline greatly from these levels,” King said Thursday.

Jeffrey Davis, chief investment officer at Lee Munder, said the weak U.S. dollar is good for exports, but warned that China’s coming problems are likely to affect domestic markets.

“Quietly, since the beginning of March when we had that sharp drop in the Asian markets and a lot of people ended up blaming the sub-prime market, China has advanced about 25%,” David said. “The Chinese have failed to stop their overheating stock market and there are going to be some issues with an over-heating economy that are going to affect the U.S. market into the summer.”