Stocks jumped Tuesday as investors bet that a deal to extend tax breaks will prompt increased spending and lift the economy. Craig Callahan, founder and president of ICON Advisors, and Scott Redler, chief strategic officer at T3live.com, shared their outlooks.
“We think the markets are about 8 percent below fair value, so we still think it goes higher from here,” Callahan told CNBC.
“Wall Street climbs a wall of worry and we’re up 92 percent in 20 months—this is a rally of a lifetime.”
Callahan said he sees value in sectors that are economically sensitive, such as techs, industrials and materials. (Scroll down for his full list of stock picks.)
“[They’ve] been the leadership and we expect that to continue,” he said.
In the meantime, Redler said on upward market days such as today, investors should “sell a little into it.”
“The market is acting very well, but everyone’s still frustrated,” Redler said. “This is the most hated rally, but meanwhile, everything’s going up methodically—you have stocks making historic highs, charts breaking out and every sector participating from oil, gold and tech. Still, no one’s that happy because in this new normal, Main Street isn’t feeling happy yet.”
Scorecard—What They Said:
- Callahan's Previous Appearance on CNBC (Jul. 19, 2010)
- Redler's Previous Appearance on CNBC (Dec. 6, 2010)
More Market Analysis & Opinion:
- Doug Kass: This Giant Tech Takeover, A 2011 Surprise
- Tax Strategy: Play the 'January Effect' NOW?
- 5 Stocks With Triple-Digit Price Tags We Like: Pros
CNBC Data Pages:
No immediate information was available for Callahan or Redler.