Stocks were lower on Friday, following news that China would take a second step to tighten monetary conditions. How should investors be positioned? Zahid Siddique, associate portfolio manager at Gabelli Equity Trust, and Bob Phillips, senior partner at Spectrum Management Group, shared their outlooks.
“China and PIIGS*—both of those issues are coming back,” Siddique told CNBC.
“We had a good rally in September and October and now we’re becoming more cautious.” (Scroll down for his full list of picks.)
Siddique expects the market to be more data-dependent going forward, and as a result, sees more volatility on the horizon.
In the meantime, Phillips said stocks look compelling.
“But there’s an awful lot of uncertainty—China, PIIGS—a lot of things to be afraid of,” he said. “But when you get down to it, the fundamentals of equities will keep rallying into the New Year.”
*PIIGS: An acronym used to refer to the five euro-zone nations: Portugal, Italy, Ireland, Greece and Spain.
Scorecard—What They Said:
- Phillips' Previous Appearance on CNBC (Aug. 31, 2010)
- Siddique's Previous Appearance on CNBC (Nov. 10, 2010)
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- These Firms to See 'Double-Digit Growth' in 5 Years
- S&P May Drop to This New Level: Technical Strategist
CNBC Data Pages:
Phillips owns shares of MA, ESRX and MDR. They are also owned in client portfolios.
Siddique and his firm own shares of XRX, FO and BA.