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U.S. vs. Global Equities: Strategists Split

Monday, 11 Jun 2007 | 3:48 PM ET

On “Morning Call,” Brian Stine, investment strategist at Allegiant Asset Management, and Edgar Peters, chief investment officer at PanAgora Asset Management, discussed the best places for investors’ money during the current volatile market.

Where to Put Your Money
Investment advice, with Edgar Peters, PanAgora Asset Management chief investment officer; Brian Stine, Allegiant Asset Management investment strategist and CNBC's Liz Claman

According to Stine, the large-cap space is the best place to be -- but he says the bigger story is global economic growth, which he believes will translate to good earnings for corporations.

“Nowadays, there’s not much difference between U.S. corporations and non-U.S.. Most U.S. corporations do a significant bit of their business overseas and most are multi-national. So, you can get that exposure overseas by investing in U.S. large-cap stocks.”

Peters also likes large caps and U.S. stocks, but believes this is a time to be defensive.

“Overall we have to be very careful, because the market had this optimistic scenario that we could have full employment, an expanding economy and falling interest rates -- and that is just not going to happen,” said Peters. “We are still facing the very real danger of an interest rate hike later this year.”

“We think globalization is important and think large-cap U.S. will give you a lot of exposure, but at the same time we do favor the U.S. over international equity markets,” Peters added.