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Markets Are 'Cheap' Right Now: Chief Investor

Markets climbed modestly on Thursday, after reports showed a drop in jobless claims and a rise in hiring. How should investors be positioned in this environment? Robert Weissenstein, chief investment officer for private banking-Americas at Credit Suisse, and Alison Deans, former CIO at Neuberger Berman and current CNBC contributor, shared their insights.

“People are feeling better about the U.S. economy, but they are worried about what’s happening outside the U.S.,” Deans told CNBC.

She said the markets are fairly valued and expects next year’s earnings growth to be around 15 percent.

“For the past two years, people have invested in the international, highly cyclical names,” Deans said. “So you have to move toward less cyclical, more domestic-oriented and probably lower beta, lower risk."

"I think the market has upside, but it’s going to be a bouncy ride.”

In the meantime, Weissenstein said he is encouraged by the upside surprises in earnings and jobs numbers.

“During the last crisis, investors were very fully invested and were trying to get out the door at the same time. But this time, no one really took on the risk that they normally do, and that speaks differently for what the markets will be over the next few months—and they’re cheap,” he said.

Scorecard — What They Said:

  • Deans' Previous Appearance on CNBC (May 28, 2010)
  • Weissenstein's Previous Appearance on CNBC (May 5, 2010)

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Disclosures:

No immediate information was available for Deans or Weissenstein.

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Disclaimer

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