Andrew Acheson, portfolio manager at Pioneer Independence Fund, told CNBC’s “Street Signs” that he expects the market to move higher despite concerns about the subprime loan market.
“I think the market can continue to do well throughout the year,” Acheson said. “The valuations are still very reasonable, and inflation is under control. The Fed is vigilant, but there are plenty of reasons to be optimistic.”
He said subprime mortgage problems are a concern, but it doesn’t appear that the rest of the economy will be affected, and spreads remain narrow.
Acheson said he likes technology stocks.
“Technology is one area where I think there are still plenty of good opportunities,” Acheson said. “The valuations are relatively low –- not just in relation to their history, but other parts of the market. The balance sheets are exceptionally strong there, and you’ve seen many recapitalizations and stock buybacks as a result. I think (technology) is an area where you can find great opportunities.”
He said utilities have posted stronger-than-expected earnings growth but face increased regulation, including pricing.
“The profitability will not be sustained at these levels, I don’t believe,” he said.