David Goerz, chief investment officer at Highmark Capital, calls the jobs number "rough" -- but believes that housing and mortgage woes will subside by year's end. He foresees the S&P 500 climbing to 1,700 in 2008.
But Goerz cautions investors to avoid energy, utilities and telecom until the economy swings back. "There's too high a risk premium in oil," he says, predicting that crude will be "down in the $70 to $90 range" through '08.
He likes tech, industrials and basic materials -- and within the financials sector, insurance stocks and brokers: "Goldman Sachs, in particular, stands out."
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