Stocks wobbled in mid-afternoon trading Monday following a short-lived rally. How should investors position their portfolios? Mary Jane Matts, director of Fifth Third Asset Management, and David Spika, vice president and investment strategist at WHG Funds, discussed their insights.
“There’s a lot of fear out there—what’s happening in Europe, slowing in China and the financial reform here in the U.S.,” Spika told CNBC.
Spika noted that higher quality companies have been outperforming lower quality firms since early May.
“So we’re focusing on large, high-quality companies with dividend yields that are at or above the U.S. Treasury [yields] and have exposure to faster growing emerging markets,” he said. “That’s a good place to invest right now and should deliver good risk adjusted returns for the next 12 to 18 months.”
In the meantime, Matts said the U.S. markets are “undervalued” compared to the rest of the world.
“And high quality and bigger caps still have an attractive advantage over their higher-risk and smaller-cap counterparts,” she said.
Johnson & Johnson
Scorecard — What They Said:
- Matts' Previous Appearance on CNBC (Mar. 18, 2010)
- Spika's Previous Appearance on CNBC (Feb. 19, 2010)
Opposing Views — Bear & Bull:
- Correction Is 'Not Over'—Market 'Worse Than January'
- Markets Will 'Double This Decline' Into Year-End
- Markets to Rise 11-14% by Year-End: Equity Analyst
CNBC Data Pages:
No immediate information was available for Matts or Spika.
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