Two bulls, Michael Yoshikami, president and chief investment strategist at YCMNET Advisors and Ryan Detrick, chief technical strategist at Schaeffer’s Investment Research, said the markets are headed higher. They told investors where to be putting their money.
“[Market] still does look good,” Detrick told CNBC. “After the rally that we’ve seen, we think that means that expectations continue to be lower, we’ve seen that the entire way up ... The economy is showing signs of life—yes, jobs are lagging … but we think the markets will go up higher into the end of the year.”
Detrick said commercial real estate is one of his favorite groups.
“We think the risky assets are the way to play it,” he said. “We look at the REITs—like the iShares Dow Jones US Real Estate —very positive price action, very high short interest huge put open interest. As this economy begins to bounce back, the risky places such as the commercial real estate and the REITs is the best place you can put your money for the intermediate term here.”
- Counterpoint: Commercial real estate is an "orderly massacre," said William Mack of Area Property Partners.
In the meantime, Yoshikami said he prefers multi-national companies that has some base in the U.S. but also has a global presence, such as McDonalds .
“We have to be careful [on the markets] though,” he said. “We have some beta names that are rallying beyond reasonable expectations. It’s time to rotate into more conservative names, cash-flow names, and names that if there’s a downturn, that are going to survive, that are going to have good earnings, good economic tailwind, infrastructure plays and global plays.”
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