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Stocks Will Move Higher in First Half of 2011: Pro

Markets are probably due for a pullback in the near-term, but for the first half of 2011, stock are going to move higher, said Andrew Kanaly, chairman of Kanaly Trust Company.

“Earnings always have been very surprising throughout this move to the upside and we’re going to see more surprising earnings, we believe, in the first half of 2011,” Kanaly told CNBC.

Kanaly added that the Fed is “very accommodative,” which will also help the markets.

In the meantime, David Dietze, president and chief investment strategist at Point View Financial Services, said the stock market is overbought.

“Stock prices have doubled since March 2009—we’ve had a straight line up for the last four months,” he explained.

Dietze said he also sees China’s inflation rate problems an issue for the U.S. economy going forward.

“At the end of the day, just like they do here, [China’s] going to kick that can down the road and not deal with the inflationary problems until a couple years down the road—when it may be too late.”

Recommendations:

Dietze Likes:

Lorillard

AT&T

Roche ADR

Kanaly Likes:

RJ CRB Index

Gold COMEX (Feb)

S&P Energy

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Scorecard—What He Said:

  • Kanaly's Previous Appearance on CNBC (Dec. 21, 2010)
  • Dietze's Previous Appearance on CNBC (Jan. 10, 2011)

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More Market Analysis & Advice:

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CNBC Slideshows:

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CNBC Data Pages:

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Thursday's Top Dow Laggards:
(as of this writing)

Alcoa

Du Pont

Caterpillar

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Disclosures:

No immediate information was available for Dietze or Kanaly.

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Disclaimer