There are “plenty” of near-term dangers out there for the economy, but the "big danger" down the road is what happens to the market when interest rates eventually begin to normalize, said Kevin Gardiner, head of global investment strategy at Barclays Wealth.
“That’s starting to happen very slowly in Europe at the moment because the European central banks worry more about inflation than the Fed might have to,” Gardiner told CNBC Monday.
However, Gardiner said the valuation of large-caps in the US is “pretty compelling” and has “very good value.”
Gardiner said he likes oil majors, techs and consumer discretionary sectors.
“When the Fed eventually begins to raise rates—which we don’t think is likely to happen until next year—investors might see that as indicative of the economy being out of intensive care.”
On the commodities front, Gardiner said while demand is robust, precious metals such as gold and silver look expensive.
“We don’t think the world is scary enough to warrant gold and silver prices being at the levels they have trading at as of late.”
Scorecard—What He Said:
- Gardiner's Previous Appearance on CNBC (May 6, 2011)
More Market Intelligence:
- Equities Are Still the Place to Be: Stock Picker
- Take Profits in Equities, Invest in Commodities: Pro
- Value Stocks to Continue Growing: Strategists
CNBC Data Pages:
Monday's Top Dow Laggards (As of Mid-Morning):
Bank of America
No immediate information was available for Gardiner or his firm.