November "might still be a little bit scary," said Scott Colyer, CEO at Advisors Asset Management. "We expect more of the volatility like we’ve seen in the past. Europe isn’t fixed but it’s getting fixed. We think we should look past that and understand there is value here and whatever follows Europe is probably going to be pretty good for the U.S."
Colyer favors companies that sell in emerging markets, rather than investing in emerging markets directly.
"Playing emerging markets directly increases some other risks that could be out there," such as currency risk, he said. "What we’d rather have is U.S. companies we know doing business globally and we don’t have to go in and pick winners on a local basis," Colyer added.
His picks are Terex , a manufacturer of work platforms, cranes, and other construction-related materials, and Las Vegas Sands for its work in emerging markets. Colyer also likes Morgan Stanley , because senior executives there have bought $3.5 million worth of stock. "We think that provides good value," he said.
Will Nasgovitz, portfolio manager at Heartland Advisors, also looks for insider buying. In the same interview, he said he likes semiconductor packaging company ATMI and Inland Real Estate , which runs retail shopping centers in the U.S. Midwest, where Heartland Advisors is based.
Nasgovitz said Inland's stock is reasonably priced. "We think some of the concerns [about shopping centers] are discounted in the stock today," he said.
The U.S. "is on the cusp of a manufacturing renaissance," he said.
Based on recent regional data, manufacturing is "in the process of bottoming out and that should be bullish for stock, in particular small-caps," in which Nasgovitz's company is increasing its allocation.
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Disclosure information was not available for Will Nasgovitz and Scott Colyer or their firms.