After some significant gains in April, where does the market go next, and how should an investor position a portfolio to take advantage of it? Sean Clark has some answers.
"I think right now, the market's in a position where it's short-term over-bought," the chief investment officer of Clark Capital Management told CNBC. "Investor sentiment is no longer pessimistic, but...it's [not] extremely optimistic either."
Clark expects the S&P 500 to vacillate around the 1400-point mark for a while. He says that his firm has increased its appetite for risk accordingly, and he said three things convince him that a major upward move is coming:
1. Market gains that have followed Federal Reserve rate cuts at 3-, 6-, and 12-month intervals.
2. A presidential election year: 13 of the last 14 presidential election years, the market has traded higher in the last seven months of the year by an average of 7 percent.
3. After recession-induced lows, the market has traded extremely higher.
Clark says his firm invests heavily in ETFs, but when it comes to specific tech stocks, he likes Apple, Google, and Research In Motion.