Stocks surged Thursday with the Dow jumping at least 200 points after another strong batch of earnings reports. Sandy Lincoln, investment strategist at M&I Investment Management, and Bill Smead, chief executive and chief investment officer of Smead Capital Management, shared their insights.
“I like this market in general,” Lincoln told CNBC. “The big story is that eventually, this trading range is going to give way to higher ground. And the reason we feel that way is because corporate performance is really very strong.”
Lincoln said he likes the cyclical plays and the technology areas.
“This is all about buying quality companies and they are available for very cheap discounts relative to the traditional market multiple,” he explained. “Over the long haul, the risk and return play still works.”
Meanwhile, Smead said investors should look into large-cap stocks.
Smead’s Large-Cap Picks:
Scorecard—What They Said:
- Lincoln's Previous CNBC Appearance (Jun. 29, 2010)
- Smead's Previous CNBC Appearance (May 25, 2010)
More Market Intelligence:
- Market Bias Is to Upside—So Invest Here: CIO
- Kass: Market Range Bound With Defined Floor & Ceiling
- Stocks Are 'Extremely Cheap' Right Now: Strategist
CNBC Data Pages:
No immediate information was available for Lincoln or Smead.