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Tighten The Belt, but Don't Cut The Cable

Sarat Sethi, partner and portfolio manager at Douglas C. Lane and Associates, told CNBC’s “Squawk on the Street” that he expects the market to be sour throughout the summer.

“I think we go flat to down through the summer months,” Sethi said Friday. “I think we’re a little over-extended. I think people got too complacent. We’ve got too many headwinds. You had a pullback (Thursday). I think we’ll see a few more of those. We had a drastic (pullback) in February.”

He said low interest rates and strong employment are positives, but are likely to be countered by rising energy prices and the weak dollar.

“We’ve already been affected by mortgages, and now the weaker dollar is making imports more expensive,” he said. “I think that’s going to have a more lasting effect on the retail sector and the financial sector than most people are giving credit.”

The weak dollar is good for major exporters like Caterpillar , but bad news for those who shop at Wal-Mart because the world’s largest retailer relies heavily on imports.

“We’re buying Comcast ," Sethi said. “We’re buying media. We like companies that have steady cash flows that are consumer necessities. You’re not going to cut back on your cable.”

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CAT
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CMCSA
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WMT
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  • Carl Quintanilla is an Emmy-winning reporter and co-anchor of CNBC's "Squawk on the Street," broadcast live from the NYSE.

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