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Markets Will Rally Into Year End: Strategist

Stocks were lower on Thursday following signs that the recovery remains tepid, even as companies report strong earnings. So where should investors look to put their money amidst the uncertainty? Jay Leupp, senior portfolio manager at Grubb & Ellis AGA; and Harry Clark, founder, president and CEO of Clark Capital Management Group, discussed their views.

“Looking at the broader market, we see 14 to 15 percent earnings growth for the next couple of years,” Leupp told CNBC.

“We see a good value entry point here.”

Leupp is seeing signs of a recovery in areas such as apartments, self-storage, manufactured homes and some specialty areas.

“REITs* are better positioned for this than the private operators, so their balance sheets are in good shape and they are prepared for this distress,” he added.

In the meantime, Clark said he expects markets to bottom earlier this month before seeing another correction again in the fall.

“But I expect a rally into the year as mid-term election cycle kicks in… and then a real good year-end rally.”

Clark said he favors the technology, materials, agribusiness and health care sectors.

* REITs:real estate investment trusts

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Scorecard—What They Said:

  • Leupp's Previous Appearance on CNBC (Jun. 15, 2010)
  • Clark's Previous Appearance on CNBC (Jun. 1, 2010)

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More Market Intelligence:

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CNBC Data Pages:

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CNBC Slideshows:

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Major Earnings to Come:

Google

AMD

Bank of America

Citigroup

General Electric*

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Disclosures:

No immediate information was available for Clark or Leupp.

*GE is the parent company of CNBC and CNBC.com.

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Disclaimer