If Market Returns to ‘Normal,’ Many Will Profit: Analysts
If the U.S. stock market ever got back to “normal,” a lot of companies already doing well would do even better, BTIG chief global analyst Dan Greenhaus told CNBC.
“People get bogged down in the details of Greece or whatever, but the fact is companies are executing and executing in not the best environment,” he said Monday. “If we get anything resembling a normalized environment, some of these companies are really going to take off.”
The retail investor hasn’t come back to equities “since the dot-com bubble. It’s never really gone back to where it was due to valuations,” he added.
In the same interview, Mark Kopinski, senior portfolio manager for international discovery at American Century Investments, said there is a lot of room for the market to advance based on “strong company earnings that have come in this year,” both in and outside the U.S.
“And the market is still cheap,” he added.
Kopinski did not give specific stock picks but said investors “can still get a lot of value out of the energy sector, especially as regards to infrastructure spending.”
There are also some good techology companies, particularly those developing the “mobile wallet” for smartphones and computers, he said, noting that move could benefit anyone from Apple to the smaller companies that make the chips that go inside the phone.
BTIG’s Greenhaus also has “liked the technology sector for a long time,” he said, acknowledging that “it hasn't been exactly a sterling outperformer.”
He added: “There’s a generational shift from labor to technology, and things that make input costs cheaper for businesses... the companies that are doing that are likely to benefit.”
Greenhaus’ company also has “buy” ratings on a number of regional banks, including KeyCorp and SunTrust , because they are in areas benefiting from an improving housing market.
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Disclosure information was not available for either analyst or their companies.