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Market to Rise 10%—Buy Techs & Banks: Stock Picker

Stocks rallied on Wednesday following a decline in equities over the previous two trading sessions, when major indexes posted their biggest losses since early February. How should investors be positioned? David Katz, chief investment officer of Matrix Asset Advisors, discussed his market strategy.

“Earnings are going to be very good this year—a little bit better than expected," Katz told CNBC. "We think businesses are going to spend and ultimately, earnings are going to be up and that should drive prices higher."

Katz said although macroeconomic headwinds are to be expected with people concerned about the economy's recovery, corporate America is doing well.

“We think the year ends about 10 to 12 percent higher on the year, probably 13 to 15 percent higher from here,” he said.

“If you look at recoveries over the last 100 years, the type of very sharp rebound we had last year is perfectly normal—and it usually continues into the second year.”

Katz said markets can expect to see a “continuation of last year,” but at a slower pace. Among his favorite sectors, he picked technology, financials and big banks.

Katz Likes:

Microsoft

Dell

Bank of America

Bank of New York

State Street

Western Union

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  • Watch Katz's Previous Appearance on CNBC (Feb. 8, 2010)

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Disclosures:

No immediate information was available for Katz or his firm.

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