Stocks rallied on Monday on optimism about the slew of earnings ahead this week. So how should investors be positioned? Nick Calamos, head of investments and chief investment officer of Calamos Investments, and Brian Belski, chief investment strategist at Oppenheimer, shared their market insights. (Scroll down for Belski's recommendations.)
“The rising market continues to surprise most people,” Belski told CNBC.
“A lot of people were looking for a lot weaker earnings season, and looking for that as a potential catalyst for a correction, but that’s not been the case.”
Belski said the markets are going to see a "V-shaped" bottom and that stocks are going to be higher a year from now than they are today.
“One of the most crowded trades is long gold and short dollar,” he said. “So when we start to see a positive turn in GDP, those two trades are going to unwind.”
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In the meantime, Calamos said that although there will be a "V-shaped" recovery, it will not be sustainable.
“And we’re going to a lower plateau for GDP growth,” he said.
“You want to have equity exposure, global equity exposure. A weak dollar and an increasing amount of debt in this government do not solve our problems—we need to stay competitive on a global basis and give companies incentives to hire people.”
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Additionally, Calamos said that results based on his “misery index” show that the shock to the average household is larger than it was before the Great Depression.
“It gives you an indication of what kind of consumption and savings rate we may have in the future and what it means for risk capital,” he said. "So in a nutshell, it’s been a huge shock to households—the depreciation in assets, real estate mortgages and what that means for the equity and bond markets.”
Belski’s Recommendations:
Overweight:
Health Care
Industrials
Info. Tech
Underweight:
Consumer Staples
Utilities
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Disclosure:
No immediate information was available for Belski or Calamos.
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