Fund Manager: Buy for The Rebound!
Wall Street may have its doubters, but don't count Ted Parrish among them. The co-portfolio manager of the Henssler Equity Fund sees a bright horizon, and he's not reluctant to say so.
"It's not looking that bad," Parrish told CNBC. "The GDP report for the first quarter, we bought some time with that report to let this whole financial mess work itself out. The Fed's throwing a lot of money into the system, which should help, and is actually showing some progress; credit spreads are better; corporate issuance of debt is up, and we're even seeing some activity in the real estate debt markets."
Parrish thinks that after a rough second quarter, corporate earnings will be looking better, led by the consumer discretionary space.
So what looks good in that consumer discretionary space? Parrish likes Garmin, maker of the popular satellite-navigation devices.
"The stock's been beaten up a whole lot," he said. "We think it's still going to grow at between 15 and 20 percent a year, to sell at ten times earnings. It's a great franchise."
- Learn more: Watch the entire interview (3 mins, 35 secs)
Garmin competes against privately-held firms TomTom and Magellan Navigation.
Parrish's fund has a position in Garmin.