Stock-market investors like the sound of bulls, but is it time to get back in now?
Harbor Advisory's chief investment officer Jack DeGan suggests that value investors take half a position in some stocks now, and wait to invest the rest.
"Be careful of falling into a value trap, which is where share prices fall more quickly than earnings estimates and book value get marked down, which creates the illusion of value," he cautioned CNBC. "Value investors have to be patient."
He has two areas of special interest:
"The stocks that are levered to the international infrastructure build-out have been crushed in the last two months," he said. (See Part 1 for DeGan's global infrastructure stock picks.)
His second area of interest is energy.
"Energy stocks, too, have been crushed in the last couple of months, and we believe that a year from now, energy prices will be higher," he said. "Some of these stocks, ExxonMobil , Anadarko Petroleum, Suncor Energy, Petrobras, these are companies that have most of their assets in politically safe places, and they're trading at very, very low valuations, and will do extremely well if energy reflates."