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Stocks Are 'Good Long-Term Investment': Strategist

Stocks struggled to hold gains Tuesday despite a handful of positive earnings and a flurry of M&A activities. Is there further room to rally? Mark Matson, founder and CEO of Matson Money, and Craig Peckham, managing director and equity product strategist at Jefferies & Co., shared their insights.

“If you take a look at what you’re getting from [the Fed], it’s an explicit directive to move out of risk-free assets and take on more risk-based assets,” Peckham told CNBC.

“They’re buying assets in the middle of the yield curve and encouraging people to move out and take on more risk, and so long as that’s the tailwind coming out of Fed policy, it’s crazy to fight the Fed.”

Peckham said stocks are the best risk asset class for investors.

Matson: Go Long

In the meantime, Matson also said stocks are a "good long-term investment."

“Micro-caps are up 117 percent since the crash bottom, and emerging market stocks are up 190 [percent],” he noted. “The market always goes back up to its highs and it’s going to happen again…Allocate now and stay long.”

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Recommendations

Matson Likes:

AT&T

General Electric

ConocoPhillips

Peckham Likes:

Simon Property

Invesco

Bucyrus International

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Scorecard—What He Said:

  • Matson's Previous Appearance on CNBC (Oct. 18, 2010)
  • Peckham's Previous Appearance on CNBC (Oct. 28, 2010)

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More Market Views—Read and Decide:

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CNBC Data Pages:

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CNBC Slideshows:

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Disclosures:

No immediate information was available for Matson or Peckham.

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Disclaimer