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Markets Are Still Below Fair Value: Stock Picker

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.”

Callahan’s Picks:

IBM

Apple

Google

Hewlett-Packard

Redler Likes:

Amazon.com

Apple

Baidu

Salesforce.com

F5 Networks

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Scorecard—What They Said:

  • Callahan's Previous Appearance on CNBC (Jul. 19, 2010)
  • Redler's Previous Appearance on CNBC (Dec. 6, 2010)

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More Market Analysis & Opinion:

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CNBC Slideshows:

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Disclosures:

No immediate information was available for Callahan or Redler.

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Disclaimer

Symbol
Price
 
Change
%Change
AMZN
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BIDU
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CRM
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FFIV
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HPQ
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IBM
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AAPL
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GOOGL
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