Market Has 'Quite a Bit' of Upside: Stock Picker
Stocks retreated Monday, led by financials, as the dollar rebounded and Dutch bank ING announced plans to split in two. Greg Merlino, president and founder of Ameriway Financial Services, and Lawrence Glazer, managing director at Mayflower Advisors, shared their market insights.
“The consumer is back and beginning to participate in the economy,” Glazer told CNBC.
“In the short run, that’s driven by policies for stimulus, cash for clunkers, homebuyer credit and that’s positive going into the all-important retail holiday season."
"However, in the long run, we do need to see unemployment come down and energy prices stay in check for consumers to continue to participate—and those headwinds do remain, longer term.”
Glazer said dividends are “very underappreciated” in this market and told investors to look into Verizon Communications.
He also likes iShares Dow Jones Select Dividend Index, iShares Barclays TIPS Bond and PowerShares VRDO Tax-Free Weekly .
In the meantime, Merlino told investors not to focus on the housing and unemployment numbers.
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“Those two things are lagging indicators and unfortunately, investors focus on those headline topics,” he said. “This economy is starting to improve, things look a lot better than a lot of people anticipated and I think the market has quite a bit on the upside.”
Merlino said he likes the large-cap technology areas and told investors to look into Google.
No immediate information was available for Glazer or Merlino.