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Stocks Look More Attractive Than Bonds: Strategist

Stocks tumbled Thursday after a disappointing outlook from Ciscorattled the market, and amid continuing troubles with European debt. Ethan Anderson, portfolio manager at Rehmann Financial, and Maury Fertig, chief investment officer of Relative Value Partners, shared their insights.

“What we’d be looking at is going with the flow, with the understanding that a double dip is not out of the question—we could see that happen next year—but I wouldn’t fight the Fed,” Anderson told CNBC.

Anderson said the key thing for investors is to have “nimbleness in their strategy.”

“To be able to have a strategy in place to reduce and increase risk depending on the situation—it’s not an easy situation right now,” he said.

'Stocks Look Attractive'

In the meantime, Fertig said the market is attractively priced.

“If you look at stocks versus bonds, stocks look attractive,” he said. “My real concern is we’ve had a 17 percent rally from the beginning of September and sentiment has gotten bullish.”

“There’s been a lot of complacency put into the market and when you get news like the Cisco news or any type of negative news, the market can certainly overreact to the downside and we could see a 3 to 5 percent selloff from the recent highs as a result of being in an oversold condition,” he continued.

“But I’d use those opportunities for the investor that’s underweight equities.”

Fertig’s Picks:

Royce Value Trust

NFJ Div Interest & Premium

LMP Capital & Income

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Scorecard—What They Said:

  • Anderson's Previous Appearance on CNBC (Aug. 12, 2010)
  • Fertig's Previous Appearance on CNBC (Sept. 29, 2010)

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More Market Views:

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CNBC Data Pages:

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CNBC Slideshows:

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CNBC's Companies in the News:

Cisco Systems

Hewlett Packard

Microsoft

IBM

JPMorgan Chase

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Disclosures:

No immediate information was available for Anderson or Fertig.

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