CNBC Stock Blog
- Greek Exit Could Trigger 50% Fall in Euro Stocks: Analyst
- Big Stock Upside for Hudson City Deal: Analyst
- 5 High-Yield Stocks Ready to Boost Dividends
- Option Bulls Take Another Shot on Idenix
- Top 20 European Stocks for Crisis Time: Strategist
- Hewlett-Packard Faces a ‘Dogfight’ for Talent: Analyst
- DuckDuckGo Cooks Google’s Goose: Analyst
- General Electric’s $4.5 Billion Dividend Slated for Buybacks
ABOUT THE CNBC STOCK BLOG
ART CASHIN
RSS FEED
Where to Invest Now: Small vs. Large Caps
Text Size 
CNBC.com Writer
Concerns about instability in Europe have been steering some investors away from large-cap multinationals and towards small caps. So far this year, the small caps have outperformed their larger counterparts. So which way should investors bet? Bill McVail, portfolio manager at Turner Small Cap Growth Fund, and Jack Ablin, executive vice president and chief investment officer of Harris Private Bank, discussed their views. (See McVail's Stock Picks, below.)
“We can go in any market, but the argument is that the large-cap companies have pushed their small-cap suppliers to cut prices last year, and we saw that in earnings,” Ablin told CNBC.
Ablin said that large-cap stocks are cheaper than small caps and the earnings outlook also favors large caps. In particular, he likes consumer discretionary, technology and material sectors.
“I would rather err on the side of the larger blue chips that didn’t participate last year, have a fair degree of pricing power, and can largely hold their small-cap suppliers at bay,” he said.
In the meantime, McVail explained why he sees better opportunities for investors in the smaller names.
“It’s been a tougher period for small caps,” he said. “But small cap stocks are not worried about sovereign debt, Greece, and what’s going on in Europe—they focus on the here and the now.”
McVail Likes:
True Religion [TRLG
Loading...
()
]
Green Mountain Coffee [GMCR
Loading...
()
]
GSIC Commerce [GSCI
Loading...
()
]
______________________________
More Market Opinions:
- Volatility Coming — So Focus on Yield: Strategist
- Dividend Stocks that Provide 'Market Stability': Chief Investor
______________________________
CNBC Data Pages:
______________________________
CNBC Slideshows:
______________________________
______________________________
Disclosures:
McVail owns shares of GSCI and TRLG in his fund, but does not own either personally.
McVail does not own shares of GMCR personally or in his fund.
No immediate information was available for Ablin or his firm.
______________________________
Data is a real-time snapshot *Data is delayed at least 15 minutes
