“The economy is bottoming and it’s making a slow turn into the wind. The bulls are in control and the bears will have to prove their case. So we’re likely to have some testing in here—I would expect that as we go through earnings season, but overall, I think the momentum is still higher over the near term.”
Gayle said he is still a fan of the technology sector despite its recent run-up. He also recommended two additional sectors for investors.
“The other emphasis we have is on energy and materials,” he said. “We think that’s a good dollar-hedge global expansion play...likely to have legs as we go into 2010.”
Sowerby said there’s more room in the markets to grow, although stocks may fight a headwind before they find higher grounds over the year.
“It’s still time to play more offense—but offense as long as there is sustainable, believable cash-flow behind the company,” he said.
Sowerby recommended Harris , Fossil and Legg Mason to investors.
No immediate information was available for Gayle, Sowerby or his firm.