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Market Bias Is to Upside—So Invest Here: CIO

Stocks struggled on Wednesday after a handful of companies reported earnings that beat expectations but weakness in techs and retailers dragged on the market. David Spika, vice president and investment strategist at WHG Funds, and Joseph Keating, executive vice chairman and chief investment officer at CenterState Bank, shared their best investment plays.

“We think the pendulum swung way too far in late April toward the negative and it resulted in some really good values in the market,” Spika told CNBC.

Spika recommended investors look into firms that are producing dividend yields greater than the 10-year Treasury.

“Investors are recognizing that with second quarter earnings coming in very strong and with positive signs out of Europe, they overestimated the potential for a double-dip and are now pricing in realistic expectations for growth, so I think there’s some upside potential here,” he said.

In the meantime, Keating said while the markets are stuck in a trading range, the bias is to the upside.

“There’s a real opportunity in the more defensive, higher-yielding part of the equity market,” he suggested. “We really like the energy infrastructurepart—this would be the pipelines that bring petroleum as well as natural gas across the United States.”

Keating Likes:

Kinder Morgan Energy

Enbridge Energy

Williams Partners

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Scorecard—What They Said:

  • Keating's Previous CNBC Appearance (Jun. 9, 2010)
  • Spika's Previous CNBC Appearance (May 28, 2010)

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Market Views—Across the Board:

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CNBC Data Pages:

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CNBC Slideshows:

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Disclosures:

No immediate information was available for Keating or Spika.

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Disclaimer