CNBC Stock Blog

Play Risk with ETFs & Tech Stocks

Andrew Fisher

After some significant gains in April, where does the market go next, and how should an investor position a portfolio to take advantage of it?  Sean Clark has some answers.

"I think right now, the market's in a position where it's short-term over-bought," the chief investment officer of Clark Capital Management told CNBC.  "Investor sentiment is no longer pessimistic, but...it's [not] extremely optimistic either."

Clark expects the S&P 500 to vacillate around the 1400-point mark for a while.  He says that his firm has increased its appetite for risk accordingly, and he said three things convince him that a major upward move is coming:

1.  Market gains that have followed Federal Reserve rate cuts at 3-, 6-, and 12-month intervals.

2.  A presidential election year: 13 of the last 14 presidential election years, the market has traded higher in the last seven months of the year by an average of 7 percent.

3.  After recession-induced lows, the market has traded extremely higher.

Recommendations:

Clark says his firm invests heavily in ETFs, but when it comes to specific tech stocks, he likes Apple, Google, and Research In Motion.

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Disclosures:

No disclosure information for Clark was immediately available.

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