Stock Picks: Basic Resources Likely to Peak

Fashionable basic resources stocks are getting close to a peak and investors should turn their attention to the technology, health-care and consumer staples sectors for further gains, Eric Taze-Bernard, CIO multimanagement at Invesco Asset Management, told "Worldwide Exchange" Wednesday.

Stock markets may continue rising until the end of the year if no major bad news emerges, as investors think the worst of the credit crisis is behind them and are buying back into short positions, he added.

Fear of Recession Eases

"Basic resources are certainly relatively expensive at this stage," Taze-Bernard said."I think it would be dangerous to join that rally."

"Technology stocks are still offering good prospects, health care has been lagging behind, as well as consumer staples," he added.

A bubble is building up in Asian markets but "short-term, Asia is the most attractive," he said.

The US stock market is attractive in the long term, as it hosts many companies from the technology, health care and consumer staples sectors, Taze-Bernard said. "I don't think you can stay away from the US but I don't think it can offer big returns."