5 Sectors Most Likely to Rise: Strategists

Where should investors look to make money now? John Merrill, founder and CIO of Tanglewood Wealth Management, and Nicholas Colas, chief market strategist at ConvergEx, shared their best sector plays.

Sector Scorecard
Sector Scorecard   

“One area that Obama and the Republicans can agree strongly on is the need to boost our exports,” Merrill told CNBC.

Therefore, Merrill said industrials, techs and consumer staples are all likely to benefit from a growth in exports.

“If you start with technology, there’s a lot to like there—there’s a surge in demand around the world for products that improve productivity and technology serves that role well,” he explained. “A lot of the major players of technology in America have bulletproof balance sheets and strong free cash flow.” (Want a second opinion? Yoshikami: Tech Takeover Frenzy To Continue)

In the meantime, Colas said he favors the health care, financials and the techsectors.

“Elections don’t change fundamentals in the near-term, but they do change perceptions—and the two sectors that have had the toughest perception story for the last year have been health care and financials,” he said.

“So perceptions may change toward those sectors," he said. "And those sectors should benefit from being out of the regulatory crosshairs they’d been in very solidly now for two years."

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Scorecard—What They Said:

  • Colas' Previous Appearance on CNBC (Oct. 29, 2010)
  • Merrill's Previous Appearance on CNBC (Oct. 28, 2010)

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More Market Intelligence:

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CNBC Slideshows:

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CNBC Data Pages:

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Major Earnings Coming Up:

Qualcomm

Kraft Foods

Activision Blizzard

Starbucks

Berkshire Hathaway

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Disclosures:

No immediate information was available for Colas or Merrill.

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