The S&P is up 37 percent since the March low, but has the recent rally been overplayed? Michael Cuggino, portfolio manager at Permanent Portfolio Funds, and Randy Bateman, CIO of the Huntington Funds, shared their market outlook and investment picks.
“I think the acute pain [of the market] is gone,” Bateman told CNBC. “There’s no question that the market can reflect this opportunity that’s out there. We’ve got a window of opportunity that the stock market is going to do well, but the chronic pain is still with us, unfortunately.”
Bateman said he expects another year of positive results before the inflation factors starts to come into play in the markets.
Cuggino said although stocks are not as cheap as they were a few months ago during their lows, there are some positive developments in the economy that may indicate further upward runs in the market.
“You’re seeing a shift among investors from the severe undervalue that we had in the stock market in February and March to asset quality issue survival, [because] it appears that the world is not going to end, it becomes more of ‘how do we move on from here?’”
Recommendations:
Bateman Likes:
S&P Industrials
S&P Materials
S&P Energy
Bateman Dislikes:
S&P Utilities
S&P Consumer Discretionary
S&P Consumer Staples
Cuggino Likes:
BHP Billiton
State Street
FedEx
Disclosure:
No immediate information was available for Bateman or Cuggino. ______________________________
______________________________