Here Comes the Stock Market Melt-UP
Hank Smith thinks the best time to get into the market is when it feels the absolute worst. So CNBC asked the chief investment officer of Haverford Investments, "Are we there yet?"
"Who can argue that it feels bad?" he replied. "It feels horrible."
That having been said, Smith added a new word to the lexicon.
"The potential for a market melt-up is very real," he said. "You've got an extraordinary amount of cash on the sidelines, you have sentiment that is as sour as ever; any improvement in sentiment could lead to an avalanche of cash coming back into the market."
So where's the best place to put that cash?
"Two themes: Quality; you have to stick with financially-strong, high-quality companies, and then, secondly, be with more defensive companies," he said. "The defensive sectors of consumer staples and health care clearly have held up better."
On his list are CVS Caremark, Walmart, and Colgate-Palmolive.
Disclosure information for Hank Smith was not immediately available.