Most companies reported better-than-expected first-quarter earnings, but that isn’t likely to continue in the second quarter, four-star fund manager Charlie Smith told CNBC Tuesday.
“Profit margins don’t have a lot higher to go,” he told CNBC’s “Street Signs.” Companies have “had a good year already this year.”
So he recommends investing in industrial cyclical stocks, particularly those doing very well in aerospace including Boeing and Honeywell International.