When is a debate not a debate? When the two sides essentially agree -- as did WealthTrust-Arizona's Heath Bray and Putnam New Value Fund's David King when they discussed the economy, the government and the Federal Reserve with CNBC's Bill Griffeth.
King, portfolio manager at Putnam, spoke on "Power Lunch" about the stock sell-off that followed the 10 a.m. ET release of housing data. He called such data important in the short term, but pointed to the January revision to justify questioning whether the "government even knows what's going on" on a monthly basis. He sees "long-term opportunities when investors overreact" and recommends a 12- to 18-month investing horizon, and not just in homebuilders. The portfolio honcho likes "ancillary" areas like materials, suppliers and mortgage insurance.
King said we are in the late stages of a bull market -- and believes the Fed will cut rates if the economy softens this year.
Bray, who serves as vice president at WealthTrust-Arizona, is "concerned" by housing's possible downward pressure on the rest of the economy -- but concurs with King that there is still money to be made in the sector. His firm is focusing on "alternative" means to find the "attractiveness of long-short programs" and "different hedging strategies."
As for the Fed, Bray agreed "wholeheartedly" with King, adding that a loosening of rate policy could "have a direct positive effect" on the market.