Find 'Real Blue Chip Value' Here: Portfolio Manager
Stocks slipped Wednesday after Tuesday saw strong results for the major averages. What should investors expect going forward? Stuart Freeman, chief equity strategist at Wells Fargo Advisors, and Barbara Marcin, portfolio manager at Gabelli Blue Chip Value Fund, shared their insights.
“It's is not unusual after you’ve had a year of economic growth to have a slower patch, but I think the markets are going to be volatile between here and the end of the year,” Freeman told CNBC.
Freeman said the S&P 500 is likely to finish the year at around 1,100 to 1,140.
“The last half of this year, we'll see earnings growth probably at half of what it was at the first half this year," he said. "And you’ll see some seasonality in the market that you didn’t see last year, because the market was coming out of the bottom of the bear market.”
In the meantime, Marcin said she expects slower growth, based on the latest economic reports and earnings.
“We’ve seen a fairly consistent story, which says that the only real growth has been outside the U.S., but the toplines have been mediocre, and the earnings have been achieved with tremendous productivity and lower costs and wages," she said.
"So that’s a very difficult outlook for growth for the next 6 to 12 months.”
However, Marcin still sees “real blue chip values” right now, and said companies such as Kraft and Mead Johnson Nutrition offer growth, good brands, franchises and cash generators at “very reasonable prices.”
Scorecard—What They Said:
- Freeman's Previous Appearance on CNBC (Aug. 6, 2010)
- Marcin's Previous Appearance on CNBC (Jul. 15, 2010)
Market Views and Advice:
- Busch: Will US Go Into Recession in 2011?
- There's a 'Lot of Opportunity' in Stocks: Fund Strategist
- How to Make 'Quick Money' in This Market: Stock Picker
CNBC Data Pages:
Major Earnings Coming Up:
No immediate information was available for Freeman or Marcin.