There is a sense of "pessimism fatigue" in the market, which could have helped stocks rally after evidence of a sharp rise in US unemployment, Lena Komileva from Tullett Prebon told CNBC.
Get into US Large Caps
The current rally will be a "short-term thing", according to Bernhard Langer, CIO at Invesco Asset Management. Langer is looking for oil to stabilize around the $35-$40 level for the present time.
"Large-cap U.S. stocks should do very fine and rally further," Langer told CNBC, adding that the S&P 500 index could rally toward 1,000.
He suggests investing in US blue-chip companies, with the exception of energy stocks.
Govt Measures for Good Infrastructure Plays
You're not going to get a lot from cash-on-deposit after the recent interest-rate cuts, so maybe it's worth, for a long-term objective, dipping back into stocks and looking for companies that might benefit from the government 'infrastructure' measures being introduced, Victoria Hoskins, regional investment director at Gerrard Barclays Wealth, said.
A Short-Term Bounce is Here
When looking at a chart for the Weekly S&P 500/T-Note Total Return Ratio, Riccardo Ronco, technical analyst at Friedman, Billings, Ramsey International noted that every week that goes by when the S&P continues to hold near 850 is a positive message for the markets.
"The selling pressure, the momentum of sellers, is wearing out, and this is a leading indication of something positive to come," Ronco told CNBC.
Focus on the names that failed to reach new lows in October and November, advises Ronco when looking at the Daily NASDAQ Composite with 52-week New Highs New Lows chart.
"Things that have gone down too much, on a 6 to 12 months basis, are usually those that are going to bounce faster into January and February."
The Asian, European and US telecommunications sectors are looking attractive at the moment, Ronco added.