Stock picking will be back in favor this year, said Amy Falls, chief investment officer of Andover Academy. She shared her market strategy with CNBC.
“We do try to take the long view, and I think it’s a difficult time right now because markets have moved a lot,” Falls said.
“We’re concerned about interest rates going higher and we still have a lot of equity exposure, but we’ve been paring it back."
"Stock picking will be back in favor in the sense that everything rallied these past few months and there wasn’t as much benefit to careful stock selection, so we’re shifting resources more into active equity managers with concentrated portfolios and clear quality focus,” she said.
Falls said she is heavily focused on equities and has reduced the exposure to Treasury-type securities.
“We still have a secular trend towards reduction of exposure to U.S. equities and increasing exposure in Asia, but we’re concerned about short-term bumps," she said. "So we’d be looking to add to Asia on pullbacks.”
Falls said Asia, especially China, offers long-term growth stories of companies that will benefit from developing domestic demand.
“There continues to be a long-term engine of growth [in China] that will be important for the global economy and important for investing," she said. "Valuations are a little high, but we’re a long-term investor.”
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More Market Views:
- Art Cashin: Beware the VIX 'Sell Signal'
- Doug Kass: Stocks Will 'Get Whacked' by 10%
- Cramer: Stocks Are on Sale–Buy, Buy, Buy
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CNBC Data Pages:
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CNBC Slideshows:
- Cramer's 12 Stocks to Play the Recovery
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CNBC's Companies in the News:
AutoNation
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Kraft
- Kraft Foods Lifts Full-Year Earnings Outlook Again
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Disclosures:
No immediate information was available for Falls.
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