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Time to Like Big Caps, Tankers?

Two fund managers are wary of the big rally that followed moves by the Federal Reserve to pump liquidity into the economy, but they've still got some favorite stocks.

"I think we're going to have jagged market action and more re-tests of the [January] lows until at least mid-year," John Dorfman told CNBC. "The Fed has dressed the wound, but the patient still has the flu."

Dorfman is chairman of Thunderstorm Capital and portfolio manager of the Dorfman Value Fund.

His list of favored stocks begins with oil-tanker companies Tsakos Evergy Navigation and Overseas Shipholding Group.

Charlie Smith, manager of the Fort Pitt Capital Total Return Fund, quoted a commentator who compared the Fed action to "a cortisone shot."

He likes industrial cyclicals with heavy overseas exposure, and is particularly fond of telecom despite concerns about pricing in that arena.

"We think the earnings are going to hold up quite well for people like AT&T and Verizon," he said.

He is also encouraged by recent developments at Caterpillar.

"They had a terrific report on their bookings," he said.

Smith is also strong on General Electric.

"Their big-ticket industrial businesses are cooking along very nicely," he said. "That's really representative of a lot of high-value capital goods people that sell overseas."

General Electric is the parent company of CNBC.com.

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