March Lows Will Hold — So Buy Equities: Strategists
Doug MacKay of Broadleaf Partners and Bill Spiropoulos of Corestates Capital Advisors agree: The March bottom will hold — and you want to be in equities now.
The strategists offered CNBC what they like and "hate" in the market now.
"I still think the bias through the end of the year remains to the upside," said MacKay. "You can have a 10 to 15 percent correction, but overall it looks positive."
"You want to focus on cyclicality."
Spiropoulos agreed on both points: "After the first chapter, a 10, 12, 13 percent correction is not out of the ordinary." But "the March lows are in place."
Spiropoulos rejects government bonds outright: "I hate Treasury-anything, I hate fixed-anything."
His portfolio's weighting:
55 percent equity
8 percent managed futures
8 percent currencies
remainder: cash and equivalents
"We use a long-short strategy in every category."
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MacKay notes that health care is "starting to perform better," perhaps a sign that the Obama administration "won't get all they want."
But his main focus is technology: "Tech has some cyclicality, it'll recover when the economy does. But there's some secular there, too. Tech is the biggest weighting in our portfolio."
The only bonds he'd consider: corporate paper from Cisco Systems and Goldman Sachs. "You could argue that Cisco is in better shape than the U.S. government," MacKay joked.
"But I still think your best bet is equities," he added.
CNBC's Companies in the News:
Bank of America
Disclosure information was not available for MacKay, Spiropoulos or their respective companies.