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Stocks and Sectors to Position Your Portfolio

David Sowerby, chief market analyst at Loomis Sayles, and Dean Barber, founder and CIO of Barber Financial Group, shared their investment strategies.

“I think it’s still a terrific environment on a micro-basis to buy companies at 6 to 7 times cash flow,” Sowerby told CNBC.

“The average stock is up 48 percent from the lows and we’ll probably get a pit stop here. But we’ve only retraced 25 percent of the original bear market. And valuations are quite compelling.” (Watch the video for the full interview.)

He said he likes the consumer, technology and small cap names, and “pockets of industrials."

“I think that’s still the right play when I look out over the next 9 to 12 months,” he said.

In the meantime, Barber warned investors about getting too bullish on the market rally.

“To think that we could be as bullish today in the markets as we were in October of 2007 is just crazy, when you’ve got all the things that have happened [in the economy],” said Barber.

Despite their differences, Sowerby and Barber each offered ideas on the best places to invest.

Recommendations:

Sowerby Likes:

CBRL Group

Perrigo

Cisco Systems

Barber Likes:

S&P Health Care

S&P Technology

S&P Financial

Barber Dislikes:

S&P Retail

S&P Consumer Discretionary

Disclosures:

No disclosure information was available for Sowerby, Barber or their companies.

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Disclaimer