GO
Loading...

Subprime Problems Won't Drag Down Stocks: Analyst

Friday, 29 Jun 2007 | 3:27 PM ET

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.”

Market Plays
Playing the markets, with Andrew Acheson, Pioneer Independence Fund portfolio manager

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.

Contact

  • Showtimes

    United States
    Monday - Friday 2:00P ET
    Europe
    Monday - Friday 20:00 CET
    Asia
    Tuesday - Saturday 02:00 SIN/HK
    Australia
    Tuesday - Saturday 04:00 SYD
    New Zealand
    Tuesday - Saturday 06:00 NZ
  • Brian Sullivan is co-anchor of CNBC's "Street Signs."

  • Co-anchor of CNBC's "Street Signs," Amanda Drury is based at the network's global headquarters in Englewood Cliffs, N.J.