How should investors be positioned in this volatile market? Ryan Detrick, chief technical strategist at Schaeffer’s Investment Research, and Kelly Campbell, founder, principal and chief executive of Campbell Wealth Management, discussed their insights.
“Right now, we’re going to be in a trading range that’s going to be range-bound and the problem with a range-bound trade is that if you’re trying to make it in the indices, you’re not, because they’re going to follow the overall economy and the markets,” Campbell said.
He said the overall theme to make money in this market is to be active and select individual stocks.
“When you think about how aggressive things are, with volatility, there’s opportunity. And if you’re willing to take it, there’s a lot of opportunity and a lot of money to be made.”
In the meantime, Detrick said he is encouraged by the recent price action in the volatility index (VIX).
“There are big bets that the VIX will be higher up several months from now…we think there’s a contrarian view,” said Detrick.
“Hedge funds have the lowest net exposure to the stock markets and...no one wants to buy the markets, even after the recent bounce, and there’s a lot of the money on the sidelines. The economy can turn around and should produce some potential good rally by the end of the year.”
Detrick said the euro and commercial real estate — two areas that are "widely hated" — could continue to rise higher.
Detrick Likes:
iShares DJ Real Estate
SL Green Realty
AvalonBay Communities
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Scorecard—What They Said:
- Campbell's Previous Appearance on CNBC (Jul. 12, 2010)
- Detrick's Previous Appearance on CNBC (Jul. 6, 2010)
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Market Views—Across the Board:
- Deflation Cycle: How to Protect Yourself
- Markets to Stay 'Very Volatile': Stock Picker
- Dollar Will Weaken, 3 Sectors Will Rule: Strategists
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CNBC Slideshows:
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CNBC Data Pages:
- Dow 30 Stocks—In Real Time
- Track the VIX Here
- Where's the US Dollar Today?
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CNBC's Companies in the News:
Wal-Mart
- Wal-Mart Rollbacks Ending? JPMorgan Sees Prices Rise
Oracle
Hewlett-Packard
Oracle's Ellison Blasts HP Board for Hurd's Exit
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Disclosures:
No immediate information was available for Campbell or Detrick.
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