GO
Loading...

Drag Your Feet, but Get Into Stocks: Analyst

Wednesday, 28 Mar 2012 | 2:59 PM ET

Get into equities, but carefully, Hugh Johnson, chairman of Hugh Johnson Advisors, told CNBC Wednesday.

NYSE traders
AP
NYSE traders

He is “overweight” on equities, but is concerned the market has “come very far, very fast. We had a great quarter [but] the chances of a fairly sharp correction are fairly severe.”

When he looks at valuations he sees stocks 8 percent overvalued from what he thinks they should be in the current quarter and “6 percent above the level we’re going to end the year at.”

His advice? “Be bullish, but drag your feet on putting any new money into the markets, and when you do put money in the markets, put it into what really works, which is finance, technology, and consumer cyclicals."

How to Play the Markets Now
Discussing winning strategies on today's pullback, with Hugh Johnson, Hugh Johnson Advisors, and Ted Parrish, Henssler Equity Fund.

Johnson’s picks include Coach, JPMorgan Chase, International Business Machines, and Oracle. He noted he has five percent of his holdings in international equities, with plans to raise it to 10 percent because of better fundamentals in some parts of the world, particularly parts of South America and Asia.

Ted Parrish, co-portfolio manager at Henssler Equity Fund, is also “overweight” in equities, but said he sees more opportunities ahead.

“If we get housing stabilization we’re off to the races,” he said. “There are a lot of good growth opportunities out there. Company balance sheets are in great shape. We’re looking forward to that ride up.”

His picks include General Electric, Emerson, and Aaron’s, which he said has a “small geographic footprint” and “a lot of room for growth.”

Additional News: US Stocks Are Overpriced by 50%: Author

Additional Views: Cramer: Don’t Let the Bears Dissuade You

______________________________

CNBC Data Pages:

______________________________
Disclosures:

Disclosure information was unavailable for either analyst or their companies.

Disclaimer

  Price   Change %Change
AA
---
COH
---
EMR
---
GE
---
IBM
---
JPM MLP ETN
---
ORCL
---

Featured