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Sell Bonds and Buy Stocks Now: Strategist

Stocks struggled Friday as concerns over the euro zone debt crisis were renewed. David Stepherson, senior portfolio manager at Hardesty Capital Management, Rob Morgan, chief investment strategist at Fulcrum Securities, and Don Schreiber, founder, president and CEO of WBI Investments, shared their best investment plays.

“Most people have been sitting on the sidelines for most of the year with heavy cash positions. And the fundamentals are going to support the markets until the year-end and into the first quarter,” Schreiber told CNBC.

In particular, Schreiber said the semiconductors are the “most undervalued” sectors relative to their earnings power. (Scroll down for his full list of picks.)

Meanwhile, Stepherson said investors should “sell bonds” and “buy stocks.”

“We don’t like the fundamentals of the bond market as we think the economy is improving and stocks, especially ones that pay dividends, look very attractive.”

In the meantime, Morgan said health care is one of this favorite sectors.

“It’s the cheapest and most downtrodden sector this year and it’s over concerns about Obamacare,” Morgan explained. “But even if nothing changes, it’s a sector that’s going to grow earnings…and Republicans have made dismantling of Obamacare a top priority, so that should add some extra synergy going into next year.”

Morgan Likes:

Merck

Pfizer

Bristol-Myers

Schreiber Likes:

Analog Devices

Intel

Micrel

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Scorecard—What They Said:

  • Morgan's Previous Appearance on CNBC (Dec. 3, 2010)
  • Schreiber's Previous Appearance on CNBC (Nov. 5, 2010)
  • Stepherson's Previous Appearance on CNBC (Oct. 22, 2010)

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Market Analysis & Opinion:

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CNBC Data Pages:

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CNBC Slideshows:

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Disclosures:

Stepherson and Hardesty Capital Management own shares of GOOG, AMGN and UPS.

Schreiber, his family and firm own shares of INTC and MCRI.

No immediate information was available for Morgan or his firm.

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Disclaimer

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