Stocks started the new month and quarter higher after an economic report showed a boost in consumer spending. Carlo Panaccione, founder of Navigation Group, and John Lekas, CEO and portfolio manager of Leader Capital, shared their insights.
“The market’s starting to trust again and it’s acting like someone looking at their third marriage—they really need guarantees,” Panaccione told CNBC.
He described the tech boom as the “first marriage,” and then the real estate boom as the second.
“And the third time out, consumers, businesses and banks don’t want anything without guarantees, so right now, they’re holding onto cash in corporations,” Panaccione explained. “People are also waiting for the election and tax issues to be cleared up as well as the Fed.”
Pannacione recommended investors to look into the multinationals, emerging market debtand high-yield bonds.
In the meantime, Lekas said investors can still profit from taking “very little risk.”
Scorecard—What They Said:
- Lekas' Previous Appearance on CNBC (Sept. 21, 2010)
- Panaccione's Previous Appearance on CNBC (Aug. 19, 2010)
More Market Advice—Read and Decide:
CNBC Data Pages:
No immediate information was available for Lekas or Panaccione.