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Market Is 'Ripe For Correction' — But You Can Invest Here

The market is “ripe for a correction," but there are still areas where investors can make money, said Simon Goodfellow of ING Wholesale Banking. He shared his market outlook and best plays.

“The S&P stayed in overbought territory for quite as long as it did, so I think this is a correction,” Goodfellow told CNBC.

“If you sell, markets will correct 10 percent and then you wait a few months and when it’s 15 to 16 percent cheaper, that really gives people the incentive to get back in fairly quickly.”

Goodfellow recommended that investors jump into large cap US equities as they have “the right earnings growth and right risk characteristics.”

“You don’t want to be in commodities at the moment—nobody doubts the uptrend—but the risk has increased at the moment and the valuations are priced quite high,” he said. “And certainly not government bonds.”

Emerging marketequities, yes, but you need to confront the idea that the emerging market currencies are going to appreciate,” he continued. “And real estate is for the brave only.”

  • Watch Goodfellow's Previous Appearance on CNBC (Mar. 26, 2010)

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Disclosures:

No immediate information was available for Goodfellow or his firm.

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