S&P at 1300 in a Year—So Invest Here: Strategist

Stocks lost 1 percent on Wednesday, the U.S. market's biggest drop since late October. But Phil Orlando, chief equity market strategist at Federated Investors, said that the S&P 500 could reach 1,200 in the short-term and 1,300 to 1,350 in the longer-term. He shared his insight.

Buffett On Markets, Investing
Buffett On Markets, Investing   

“1,200 we think is the number we’re going to achieve, fully discounting fourth quarter earnings—meaning over the next month or two, as we report the fourth quarter,” Orlando told CNBC.

“We expect the S&P to appreciate up to the 1,300 to 1,350 level over the course of the next 12 months or so.”

Orlando said historically, gridlock has been favorable for the economy and the markets.

“In terms of where to invest, we continue to like some of the higher beta areas as the economy continues to recover—technology, consumer discretionary, materials, and financial services,” he said.

“But if yesterday’s activities in Massachusetts spell the death knell of health care legislation, then health care stocks generally—which are extraordinarily cheap—could be an area that bears watching.” (Counterpoint:Cramer: Sell These Health-Care Stocks Now!)

  • Watch Orlando's Previous Appearance on CNBC (Jan. 11, 2010)

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Disclosures:

No immediate information was available for Orlando or his firm.

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