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More Upside Potential in Stocks: Strategist

Thursday, 11 Nov 2010 | 3:46 PM ET

With the Group of 20 meeting in Seoul to discuss how to revive the global economy, Warren Meyers of DME Securities and David Kotok of Cumberland Advisors joined CNBC on Thursday to share where they're investing.

Investing in Stocks Now
Discussing where to invest now, with Warren Meyers, DME Securities, and David Kotok, Cumberland Advisors.

Although they're not expecting material progress to be made in Seoul, both remain positive on the marketplace, especially as the Fed's quantitative easing continues to pump money into the economy.

"In the short run, you have to be in stocks," Kotok said. "The bull market is not over."

Kotok likes U.S. energy, transport and industrial sectors, along with multinational companies and emerging markets over mature markets. (Read anotheropinion: 9 Multinational Picks For Your Portfolio)

He noted possible downsides, however: more pressure on the US dollar and, if additional waves of quantitative easing occur, inflationary threats down the line.

Downside? Not Yet

Yet, neither Meyers nor Kotok see these downside risks developing in the near future.

"It's all on your perspective on how long it's going to take for these ramifications to finally play out," Meyers said. "If you're a believer like I am that it's going to take months or even a year or more for the negatives to start to show their ugly face, then you have much more room on the upside in the equities markets."

"My belief is we're got a longer term and we've got more upside," Meyers added.

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Scorecard—What They Said:

  • Kotok's Previous Appearance on CNBC (Nov. 4, 2010)
  • Meyers' Previous Appearance on CNBC (Oct. 29, 2010)

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More Market Views:

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CNBC Slideshows:

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CNBC Data Pages:

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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 Kotok or Meyers.

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Disclaimer

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